This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.


EC consultation on the revision of the NFRD — Deadline extended

03 Apr 2020

In February 2020, the European Commission launched an initiative to review the European Non-Financial Reporting Directive. The deadline for comments has now been extended to 11 June 2020.

The consultation page can be accessed here. Please note that you need to register in order to access the public consultation.

ESMA publishes 24th enforcement decisions report

03 Apr 2020

The European Securities and Markets Authority (ESMA) has published further extracts from its confidential database of enforcement decisions taken by European national enforcers. This batch deals with decisions in relation to IFRS 15 (three decisions), IFRS 7, IFRS 9/IAS 12, IFRS 10, IAS 34, and IFRS 15/IFRS 16.

The European national enforcers of financial information monitor and review financial statements published by issuers with securities traded on a regulated European market and who prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) and consider whether they comply with IFRS and other applicable reporting requirements, including relevant national law.

ESMA has developed a confidential database of enforcement decisions taken by individual European enforcers as a source of information to foster appropriate application of IFRS.

The publication of enforcement decisions is designed to inform market participants about which accounting treatments European national enforcers may consider as complying with IFRS, i.e. whether the treatments are considered as being within the accepted range of those permitted by IFRS. ESMA considers the publication of the decisions, together with the rationale behind them, will contribute to a consistent application of IFRS in the European Union.

Topics covered in the latest batch of extracts, covering the period from May 2018 to October 2019, include:

Standard Topic
IFRS 15 — Revenue from Contracts with Customers Identification of performance obligation
IFRS 7 — Financial Instruments: Disclosure Liquidity risk of notes with early redemption option
IFRS 9 — Financial Instruments
IAS 12Income Taxes
Deferred tax assets (DTAs) related to a change of accounting policy due to first application of IFRS 9
IFRS 10 — Consolidated Financial Statements Assessment of De-facto control
IFRS 15 — Revenue from Contracts with Customers Disaggregation of revenue
IAS 34 — Interim Financial Reporting Presentation of condensed interim income statement
IFRS 15Revenue from Contracts with Customers Accounting for a framework agreement
IFRS 15 — Revenue from Contracts with Customers
IFRS 16Leases
Identifying components in lease contracts

Click for access to the full report (link to ESMA website). The ESMA has also published an updated overview of all enforcement decisions ever published.

FRC issues updated auditor reporting bulletins

02 Apr 2020

The Financial Reporting Council (FRC) has issued updated bulletins as guidance for auditors preparing a range of reports to align with the revised Auditing Standards issued in December 2019.

The updated bulletins are:

  • Bulletin: Illustrative Statutory Auditor's Reports on United Kingdom private sector financial statements  – To assist auditors preparing statutory auditor’s reports for UK private sector financial statements. This bulletin replaces the FRC’s previous publication, Bulletin: Compendium of illustrative auditor’s reports on United Kingdom private sector financial statements. 
  • Bulletin: Auditor’s Reports on Revised Accounts – To assist auditors in preparing reports on a company’s revised accounts and reports. This bulletin replaces the extant version.
  • Bulletin: Miscellaneous Companies Act Reports – To assist auditors in preparing Companies Act 2006 reports that are required to be completed by a registered auditor. This bulletin replaces the extant version.

In addition to guidance relating to the auditing standards and relevant laws and regulations, these bulletins include illustrative reports that auditors may adapt and tailor to their specific reporting circumstances.

A press release and the updated bulletins are available on the FRC website. 

ICAEW webinar on SECR reporting

02 Apr 2020

The Institute of Chartered Accountants in England and Wales (ICAEW) will be hosting a webinar providing an overview of the Streamlined Energy and Carbon Reporting (SECR) regulations.

As well as providing an overview of the requirements, the webinar will cover which companies and what activities are in scope and what exemptions are available.

Further details are available on the ICAEW website.

ESMA publishes report on the activities of accounting enforcers and their findings within the EU in 2019

02 Apr 2020

The report provides an overview of the activities of the European Securities and Markets Authority (ESMA) and the accounting enforcers in the European Union (EU) when examining compliance of financial information provided by issuers listed on regulated markets with the applicable financial reporting framework in 2019.

European enforcers examined the financial statements of about 950 issuers representing an average examination rate of 17% of all IFRS issuers with securities listed on regulated markets. These examinations resulted in 299 actions taken to address material departures from IFRS.

Enforcers also assessed the non-financial information related to ESG for 937 issuers, covering approximately 35% of the total estimated number of issuers required to publish a non-financial statement, resulting in 95 enforcement measures.

In addition, 712 management reports were reviewed for evaluating compliance with ESMA’s guidelines on alternative performance measures, covering around 13% of all IFRS listed issuers in Europe against which were taken 109 corrective actions.

Please click to access the full report on the ESMA website.

IFRS Foundation appoints and reappoints ITCG members

01 Apr 2020

The IFRS Foundation has announced the appointment of five new membership organisations and four new representatives of existing membership organisations to the IFRS Taxonomy Consultative Group (ITCG). It has also reappointed six members. All appointments and reappointments take effect from 1 April 2020 for varying term lengths.

A full list of appointees is available on the IASB's website.

EFRAG, EFFAS, ABAF/BVFA, and IASB to host joint outreach event on general presentation and disclosures in financial statements

01 Apr 2020

The European Financial Reporting Advisory Group (EFRAG), the European Federation of Financial Analysts Societies (EFFAS), the Association Belge des Analystes Financiers (ABAF/BVFA), and the IFRS Foundation will host a joint outreach event composed of two webinars on 19 and 26 of May 2020 on the IASB’s Exposure Draft ‘General Presentation and Disclosures’.

On 17 December 2019, the IASB published the exposure draft of a new standard General Presentation and Disclosures that is intended to replace IAS 1 Presentation of Financial Statements.

If circumstances permit, EFRAG will host the joint outreach event in person in its offices in Brussels on 19 May 2020.

For more information, see the press release on the EFRAG’s website.

EFRAG publishes pre-consultation document on IBOR ED

31 Mar 2020

The IASB expects to​​ issue an exposure draft on its project on the IBOR reform Phase 2 during April 2020 with a comment period of 45 days.​​ In order to maximise the period during which its constituents can comment on its draft comment, the European Financial Reporting Advisory Group (EFRAG) has now published pre-consultation document on the exposure draft.

The views in the document are based on the IASB tentative decisions available on 31 March 2020. They will form the basis for EFRAG’s draft comment letter that will be published as quickly as possible once the IASB has published its exposure draft.

In the document, EFRAG welcomes the tentative decisions taken by the IASB during its deliberations on the second phase of its project on the IBOR reform. In particular, EFRAG supports providing a practical expedient allowing an entity to apply paragraph B.5.4.5 of IFRS 9 Financial Instruments to account for mod​ifications related to IBOR reform; supports the tentative decisions taken on hedge accounting; and observes that the proposed disclosures will assist users of financial statements in understanding the effects of IBOR reform on an entity.​

Please click for more information on the EFRAG website:

Updated IPSAS-IFRS alignment dashboard

31 Mar 2020

The International Public Sector Accounting Standards Board (IPSASB), which develops the International Public Sector Accounting Standards (IPSAS) for financial reporting by governments and other public sector entities, has released an updated IPSAS-IFRS alignment dashboard showing how far individual IPSAS are aligned with corresponding IFRSs.

Please click to access the updated alignment dashboard prepared for the March 2020 IPSASB meeting on the IPSASB website.

In this context, please also so our 2020 edition of IPSAS in your pocket published in January.

Charities SORP Committee publishes guidance on Covid-19

30 Mar 2020

The Charities Statement of Recommended Practice (SORP) Committee has published guidance on the implications of COVID-19 control measures and charity financial reporting.

The advice does not amend the SORP, is advisory in nature and aims to assist preparers, auditors and examiners of accounts. Preparers are under no obligation to apply the advice.

The key messages from the guidance are:

  • The measures being taken to contain COVID 19 will impact on charities in many different ways and it is important for charity trustees to understand the impact on the delivery of their activity and their governance including their finances.
  • Where a charity is preparing a set of accounts and these have not yet been approved, trustees should consider whether information needs to be included to explain the impact of the COVID 19 situation on their charity.
  • There could be changes to the financial statements needed as a result of the COVID 19 situation and it is important that trustees understand and consider these.
  • Charities should keep up to date with developing guidance from the relevant charity regulator in their jurisdiction.

Specifically the guidance covers:

  • The Trustees’ Annual Report and risk reporting.
  • Accounting related considerations:
    • ‘True and fair’
    • Post balance sheet events
    • Going concern considerations
    • Alternative basis of preparation where not a going concern
    • Defined benefit pension liabilities
    • Liabilities and provisions
  • Audit and external scrutiny.
  • Reporting to the charity regulator by charity trustees.
  • Filing and going concern, trustees’ filing responsibilities and late filing.

The guidance is available on the Charities SORP website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.