ESMA publishes 26th enforcement decisions report
17 May 2022
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, IAS 2 (two decisions), IFRS 15 (three decisions), IFRS 16/IAS 36, IAS 36 (two decisions), IFRS 8 and IAS 7/IAS 8.
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 2020 to November 2021, include:
Standard | Topic |
---|---|
IFRS 9 — Financial Instruments |
Consideration of credit enhancements in the measurement of expected credit losses |
IAS 2 — Inventories | Measurement of net realisable value of inventory |
IAS 2 —Inventories | Costs to make the sale in calculating the net realisable value of inventories |
IFRS 15 — Revenue from Contracts with Customers | Recognition of revenue over time |
IFRS 15 — Revenue from Contracts with Customers | Significant financing component |
IFRS 15 — Revenue from Contracts with Customers | Presentation of litigation proceeds as revenue |
IFRS 16 —Leases IAS 36 — Impairment of Assets |
Impairment test of cash generating unit comprising right of use assets |
IAS 36 — Impairment of Assets | COVID-19 impairment indicators |
IAS 36 — Impairment of Assets | Identifying cash-generating units (GGUs) |
IFRS 8 — Operating Segments | Operating Segments |
IAS 7 — Statement of Cash Flows IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors |
Change in the composition of cash and cash equivalents |
Click for access to the full report (link to ESMA website).