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.

ESMA consults on revised accounting enforcement guidelines

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

20 Jul 2013

The European Securities and Markets Authority (ESMA) has launched a consultation on guidelines on the enforcement of financial information published by listed entities in the European Union. The proposed guidelines are the result of a review of Standards No. 1 and 2 on the enforcement of financial information developed by the Committee of European Securities Regulators (CESR), ESMA's predecessor, in April 2003 and April 2004 respectively.

ESMA has decided to review the CESR standards in order to reflect the experience gained by their use since 2005. The new guidelines are based on the same principles, however, they have been reformulated throughout and have been combined into one document.

Also, the objective of enforcement has been revised in order to reflect the importance of compliance with the relevant financial reporting standards and transparency of financial information. Additionally, the concept of enforcement has been extended in order to include, in addition to the enforcers’ review of the financial information, any other actions which might contribute to enforcement such as for example issuing alerts.

Regarding the scope, ESMA noted that investor protection requires the extension of the scope of enforcement to the whole financial reporting framework applicable to listed issuers on the EU Single Market. This includes national GAAPs from the EU jurisdictions and third countries' accounting standards, which have been declared equivalent to IFRS.

The proposed guidelines would apply to all competent authorities and any other bodies from the EU undertaking enforcement responsibilities under the Transparency Directive and the IFRS Regulation.

Please click for access to the consultation document and a corresponding press release on the ESMA website. The closing date for responses to the consultation is 15 October 2013 and ESMA expects to publish the final guidelines in 2014.

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.