Corporate Disclosure

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has issued a Public Statement on the Transparency on implementation of IFRS 17 Insurance Contracts

The Statement highlights the importance of issuers accompanying users of their financial statements, so that they understand the expected accounting implications of the new Standard’s application.

ESMA’s recommendations cover the disclosures of expected impacts of the initial application of IFRS 17 in the interim and annual financial statements for 2022. ESMA expects management and supervisory boards members and auditors to take into account these recommendations, when fulfilling their respective obligations relating to the issuer’s interim and annual financial statements 2022.

In line with past major standards (IFRS 9 and IFRS 15), in the year prior to their effective date ESMA provides a roadmap to help issuers in providing the disclosures on expected impacts of new, but not yet effective, standards, as required by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

Next steps

ESMA, and the National Competent Authorities, will consider how the recommendations in the Public Statement have been implemented by issuers in their interim and annual financial statements 2022.

Further information:

Solveig Kleiveland
Senior Communications Officer
Tel: +33 (0)1 58 36 43 27
Email: press@esma.europa.eu

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today released a Public Statement on the implications of Russia’s invasion of Ukraine on half-yearly financial reports.

ESMA recognises the human cost of Russia’s military aggression against Ukraine, and the significant challenges to business activities and effects on the global economic and financial system posed by the invasion. The statement, with the aim of promoting investor protection, provides overarching messages to issuers and auditors including:

  • A reminder of the main IFRS requirements which may be applicable in the context of Russia’s invasion of Ukraine e.g., impairment of non-financial and financial assets, and loss of control;
  • ESMA’s expectations regarding disclosures in financial statements e.g., judgements made, significant uncertainties, and going concern risks;
  • ESMA’s expectations regarding disclosures in interim management reports e.g., direct and indirect impact of Russia’s invasion of Ukraine and imposed sanctions on issuers’ strategic orientation and targets, operations, financial performance, financial position and cash-flows, measures taken to mitigate the impacts, and cybersecurity risks; and
  • A reminder of issuers' obligations vis-à-vis the Market Abuse Regulation.

Next steps

ESMA expects issuers (in particular their management and supervisory bodies) and their auditors to consider the messages of the statement when preparing and, where applicable, reviewing interim financial reports.

ESMA and the European enforcers will focus on ensuring that adequate transparency is provided regarding the impacts and implications of Russia’s invasion of Ukraine in financial information published by European issuers.

Further information:

Solveig Kleiveland
Senior Communications Officer
Tel: +33 (0)1 58 36 43 27
Email: press@esma.europa.eu

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published its follow-up report to the peer review on the guidelines on the enforcement of financial information (GLEFI). The report analysed the progress made by seven National Competent Authorities (NCAs) and found that most of them made improvements, although some are still experiencing staffing difficulties.

The report identifies that the majority of the seven NCAs  in scope (Capital Market Commission, Greece, National Bank of Hungary, Financial and Capital Market Commission, Latvia, Malta Financial Services Authority, Securities and Markets Commission, Portugal, Financial Supervisory Authority, Romania, and Swedish Financial Supervisory Authority) made improvements – since the most recent review in 2017 – by allocating more resources to the enforcement of financial information (EFI) – either by recruiting more staff or allocating more time to EFI activities. However, some NCAs still have staffing difficulties, with an obvious impact on the accomplishment of the EFI work plan and, more generally, on the allocation of time and skills to the topic.

The report also highlights that there is a risk of extra-pressure on resources due to the revised GLEFI that strengthen the EFI requirements, and the non-financial information tasks that are gaining importance and are often allocated to the EFI teams.

Overall, in terms of selection methods, it is considered that NCAs’ selection methods have improved and seem to be compliant with the GLEFI. Difficulties remain in relation to the implementation of those methods, particularly where resources can be scarce.

The objective of the follow up is to assess progress made by those NCAs for which recommendations were issued in 2017. The follow-up to the 2017 peer review was agreed in the ESMA 2020 Annual Work Programme but postponed due to the fast track peer review on the same Guidelines in the context of the Fast Track Peer Review Report on Wirecard.

Next steps

NCAs will follow-up on the specific recommendations and ESMA will monitor this as part as its on-going activities.

 

Further information:

Dan Nacu-Manole

Communications Officer

   +33 (0)1 58 36 52 06

@   press@esma.europa.eu

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