The European Securities and Markets Authority (ESMA), the EU’s securities markets’ regulator, has published an extract from its confidential database of enforcement decisions on financial statements.
The extract includes a selection of 8 decisions taken by national enforcers in the period from December 2016 to December 2018. These decisions cover several topics, including presentation of the statement of cash flows, impairment of financial and non-financial assets as well as accounting treatment of leased-out property acquired for re-development.
ESMA is publishing these extracts, with the aim of providing issuers and users of financial statements with relevant information on the appropriate application of the International Financial Reporting Standards (IFRS).
European enforcers monitor and review IFRS financial statements and consider whether they comply with IFRS and other applicable reporting requirements, including relevant national law.
The publication of enforcement decisions informs market participants about which accounting treatments European national enforcers may consider as complying with IFRS, that is, whether the treatments are considered as being within the accepted range permitted by IFRS. These publications, together with the rationale behind them, will contribute to a consistent application of IFRS in the European Economic Area.
ESMA will regularly publish extracts from the database, with the next extract expected in early 2020