The European Securities and Markets Authority (ESMA) has published the second annual activity report on monitoring enforcement of International Financial Reporting Standards (IFRS) in Europe.

European issuers of financial information have developed significant experience in IFRS accounting which is reflected in the quality of their financial reporting which has improved year on year. Nevertheless, there is still room for improvement. The report finds that even though the disclosure of the possible impact of risks and uncertainties faced by the issuers regarding judgements and estimates used in the preparation of financial information has gained importance in the current economic climate boiler-plate disclosures are still widely used.

Among the recurring issues identified by European enforcers are financial instruments, impairment of non-financial assets, operating segments, share-based payments, non-current assets held for sale and discontinued operations, investments in associates, and revenue recognition.

The report is available on the ESMA website (PDF 128k); it is accompanied by a press release (PDF 32k).