KPMG’s Michael Kavanagh summarises the key points in ESMA’s recently published European common enforcement priorities for 2018 IFRS financial statements.
The European Securities and Markets Authority (ESMA) has issued its annual public statement highlighting the common areas that European national accounting enforcers will be focusing on when reviewing listed companies’ 2018 IFRS financial statements.
European enforcers, including IAASA in Ireland and the FRC in the UK, will be required to include the ESMA topics in their examinations of companies’ 2018 financial statements. As such the ESMA Statement is essential reading for those within the remit of an EU accounting enforcement regime and is of interest to all others involved in any aspect of financial reporting.
The layout and style of the ESMA Statement is very different to previous years and very much focused on the implementation of the new financial reporting standards. Now that the new financial instruments and revenue standards are effective – and with IFRS 16 due soon – ESMA clearly expects companies to deliver the required level of detail and transparency in their 2018 disclosures.
The three 2018 prioritised topics are:
In addition to the three 2018 prioritised topics identified, the ESMA Statement highlights a number of other financial reporting considerations, namely:
The Statement goes into considerable detail on the three priorities:
Entity-specific disclosures including:
If you would like to discuss this further, please contact Michael Kavanagh.
This article originally appeared in November edition of Briefly, Accountancy Ireland and is reproduced here with their kind permission.