European authority highlights 2014 priorities for reviewers of IFRS financial statements.
A statement issued by the European Securities and Markets Authority highlights the areas of focus for European national regulators when reviewing IFRS financial statements for the year ended 31 December 2014.
ESMA’s priorities reflect a number of EU-endorsed IFRSs and amendments that have come into effect in 2014, as well as prevailing economic conditions, focusing on consolidated financial statements, joint arrangements and deferred tax assets.
The statement also stresses the general need to improve the quality of disclosures in financial statements, particularly in view of the significant new disclosures required by these newly effective standards, and the IASB’s disclosure initiative.
Meanwhile, EU-listed banks are expected to provide relevant information on material impacts of the European Central Bank’s comprehensive assessment of the banking sector, and on any changes in the level of regulatory capital required.
ESMA also expects banks to continue to improve their disclosures, in response to the findings of its 2013 report on the comparability of banks’ financial statements.
Listed companies and their auditors should continue to pay attention to the enforcement priorities published by ESMA in previous years, which remain relevant.
Although the topics included in the statement are those deemed to be most relevant at a European level, regulatory bodies outside of Europe are also likely to take notice, and to pay particular attention to the same areas of focus.
|Areas of focus||Specific points to consider|
|Consolidated financial statements||
|Deferred tax assets||
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