Corporate Disclosure

ESMA has published today a report providing an overview of the implementation of IFRS 13 Fair Value Measurement by European issuers. The report assesses the level of compliance of IFRS financial statements with the requirements in IFRS 13 and the comparability amongst entities.

The report builds on a desktop review of the 2015 financial statements of a sample of 78 issuers from different industries, and on the evidence from enforcement actions taken by European enforcers relating to financial years 2013, 2014 and 2015.

The requirements of IFRS 13 have, in general, been well incorporated by the issuers in the sample. ESMA, however, finds room for improvement in areas such as disclosures on fair value and the assessment when transaction or quoted prices do not represent fair value.

Next steps

ESMA expects issuers and their auditors to consider the findings of this review when preparing and auditing the financial statements.

ESMA will submit this report to the International Accounting Standards Board which is currently conducting a Post Implementation Review on this standard.

The European Securities and Markets Authority (ESMA) has published four new questions in its Questions and Answers (Q&A) document, on the implementation of its Guidelines on the Alternative Performance Measures (APMs) for listed issuers.

The new questions provide information on:

  1. the definition of APMs in the context of interim financial statements;
  2. the prominence of APMs, i.e, the way they are presented compared to IFRS figures outside financial statements; and
  3. the use of the “compliance by reference” principle as set out in the Guidelines.

An alternative performance measure is a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. The guidelines apply to alternative performance measures disclosed by issuers or persons responsible for drawing up a prospectus (read ESMA’s one page summary).

The purpose of this Q&A is to promote common supervisory approaches and practices in the implementation of these guidelines.

The European Securities and Markets Authority (ESMA) is specifying the electronic format in which annual financial reports from 2020 will have to be prepared. In order to assess whether the draft rules are practicable and to determine to which extent they have to be improved, ESMA is organising field tests with interested stakeholders.

The field tests will consist of transforming annual financial reports by issuers to Inline XBRL instance documents, according to ESMA’s draft ESEF specifications.

ESMA is seeking participation from:

·         issuers on European regulated markets from all industries preparing IFRS consolidated financial statements; and

·         software vendors.

Participating issuers will receive free support to transform their annual financial report to Inline XBRL. They will thus be able to learn how the Inline XBRL format can be applied. Furthermore, the effort for their first filings, once the preparation of the annual financial report in the European Single Electronic Format becomes mandatory in 2020, will be significantly reduced. Additionally, participants will have the opportunity to contribute to the development of the specifications of a European Single Electronic Format that better fits their reporting needs.

Timeline and contact details

Applications are welcome by Friday 14 July. Several workshops will be held from the end of July until the end of August. ESMA will provide interested issuers with a list of possible dates.

Issuers and software vendors interested in participating in the field tests are invited to contact esef@esma.europa.eu.