TEFi

TEFi stands for Transparent Economic and Financial Information, a proposed international standard for publishing financial data to improve accuracy, comparability, and accountability across public and private sectors.

Origin and scope: Developed by a consortium of regulatory bodies, standards organizations, and think tanks in the early 2020s, TEFi aims to harmonize data formats, definitions, and measurement units. The TEFi data model provides a modular core for disclosures such as revenue, expenditures, assets and liabilities, and cash flows, with optional modules for government debt, contingent liabilities, and environmental liabilities.

Data format and governance: TEFi uses machine-readable formats such as JSON, XML, and CSV, with a metadata schema and versioning. A TEFi Council oversees governance, updates, and auditing requirements, and encourages independent verification by qualified third parties.

Applications: The framework is intended for public budgeting, corporate financial reporting, and policy analysis. It can improve investor confidence, support regulatory oversight, and facilitate cross-reporting by aligning TEFi with existing standards such as IFRS, IPSAS, and GRI.

Criticisms and challenges: Adoption costs, technical complexity, and the need for capacity building pose barriers. Critics warn of potential political resistance and risks of data misinterpretation or selective disclosure. Privacy considerations and the risk of standardized metrics stifling context are also noted.

Status: As of today, TEFi remains a framework at pilot and discussion stages, with several jurisdictions and organizations testing its disclosures. Widespread adoption will require broad consensus, refined guidance, and credible verification mechanisms.