ESMA publishes 20th enforcement decisions report
05 Jan 2017
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 7, IFRS 10, IFRS 12, IAS 1, IAS 8, IAS 12, IAS 16, IAS 17, IAS 32, IAS 36, IAS 37, IAS 38, IAS 39, and IFRIC 4.
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 March 2014 to June 2016, include:
Standard | Topic |
---|---|
IFRS 7 — Financial Instruments: Disclosures | Qualitative disclosures of the risks arising from financial instruments |
IFRS 12 — Disclosure of Interests in Other Entities | Disclosure of significant judgements and assumptions in determining the existence of significant influence |
IAS 36 — Impairment of Assets | Disclosures relating to determination of value in use |
IAS 39 — Financial Instruments: Recognition and Measurement | Recognition of losses on loans upon conversion to shares |
IAS 1 — Presentation of Financial Statements | Presentation of equal and opposite gains and losses in the statement of profit or loss and other comprehensive income for the period |
IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors IAS 38 — Intangible Assets |
Reclassification of capitalised milestone payments by a pharmaceutical company to the statement of profit or loss |
IFRS 10 — Consolidated Financial Statements | Legal requirements that prevent a shareholder from exercising its rights |
IFRS 10 — Consolidated Financial Statements | Determining whether an entity is an investment entity |
IAS 16 — Property, Plant and Equipment | Depreciation of vessels in the oil and gas industry |
IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors IAS 36 — Impairment of Assets |
Application of value in use methodology in impairment testing |
IAS 36 — Impairment of Assets IAS 37 — Provisions, Contingent Liabilities and Contingent Assets |
Recognition of onerous contract provisions |
IAS 36 — Impairment of Assets | Identification of cash-generating units |
IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors IAS 17 — Leases IAS 32 — Financial Instruments: Presentation IFRIC 4 — Determining whether an Arrangement contains a Lease |
Purchase of a car fleet with an agreed buy-back agreement |
IAS 12 — Income taxes | Recognition of deferred tax assets for unused tax losses |
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.
Related Topics
- IAS 38 — Intangible Assets
- IAS 1 — Presentation of Financial Statements
- IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors
- IAS 12 — Income Taxes
- IAS 16 — Property, Plant and Equipment
- IAS 17 — Leases
- IAS 32 — Financial Instruments: Presentation
- IAS 36 — Impairment of Assets
- IAS 37 — Provisions, Contingent Liabilities and Contingent Assets
- IAS 39 — Financial Instruments: Recognition and Measurement
- IFRS 7 — Financial Instruments: Disclosures
- IFRS 10 — Consolidated Financial Statements
- IFRS 12 — Disclosure of Interests in Other Entities
- IFRIC 4 — Determining Whether an Arrangement Contains a Lease