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ESMA opinion on accounting for cash contributions to a DGS

  • ESMA (European Securities and Markets Authority) (dark gray) Image

29 Sep 2015

The European Securities and Markets Authority (ESMA) has published its opinion on the application of the IFRS requirements in relation to the recognition of cash contributions to the Deposit Guarantee Scheme (DGSs) in IFRS accounts.

ESMA’s responsibilities include promoting effective and consistent application of International Financial Reporting Standards (IFRS). Therefore, the ESMA Regulation gives ESMA competence to deliver accounting opinions.

The opinion now published is limited to the accounting treatment of ex-ante non-refundable cash contributions to the DGS for which the obligating event is identified at a single point in time. Based on the analysis of the existing IFRS requirements, ESMA concluded that as soon as the obligating event of a non-refundable cash contribution to a DGS is identified, the contribution must be recognised as an expense in full.

Please click to access the opinion on the ESMA website.

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