ESMA publishes 26th enforcement decisions report

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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 2Inventories Measurement of net realisable value of inventory
IAS 2Inventories Costs to make the sale in calculating the net realisable value of inventories
IFRS 15Revenue from Contracts with Customers Recognition of revenue over time
IFRS 15Revenue from Contracts with Customers Significant financing component
IFRS 15Revenue from Contracts with Customers Presentation of litigation proceeds as revenue
IFRS 16Leases
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).

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