ESMA publishes 25th enforcement decisions report

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16 Jul, 2021

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 9 (three decisions), IFRS 16 (two decisions), IFRS 9/IFRS 7, IAS 1, IAS 1/IAS 34, IAS 1/IFRS 7 and IAS 7.

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 November 2019 to July 2020, include:

Standard Topic
IFRS 9 Financial Instruments
Measurement of expected credit losses
IFRS 9Financial Instruments
Measurement of purchased credit impaired assets (POCI)
IFRS 9 Financial Instruments
Disclosure of the effects of changes in the credit risk related to financial liabilities designated as at fair value through profit and loss
IFRS 9 Financial Instruments
IFRS 7 — Financial Instruments: Disclosure
Impairment of finance lease receivables
IFRS 16Leases Recognition of lease on the first application of IFRS 16
IFRS 16Leases Depreciation of leased assets and dismantling costs
IAS 1 — Presentation of Financial Statements Presentation of expenses related to COVID-19
IAS 1 — Presentation of Financial Statements
IAS 34 — Interim Financial Reporting
Presentation current/ non-current liabilities in the balance sheet
IAS 1 — Presentation of Financial Statements
IFRS 7 — Financial Instruments: Disclosure
Disclosures of financial risk
IAS 7 — Statement of Cash Flows Reconciliation of net-debt

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.

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