On 27 October 2017, ESMA published its annual public statement on European common enforcement priorities for 2017 IFRS financial statements, setting out the priorities that listed companies and their auditors should consider when preparing and auditing their 2017 financial statements. ESMA expects that the statement should help to ensure consistent application of IFRS throughout Europe.
In summary, the 2017 enforcement priorities are as follows:
- Disclosure of the expected impact of major new standards in the period of their initial application ― ESMA emphasises the need for high-quality implementation of IFRS 9, Financial Instruments and IFRS 15, Revenue from Contract with Customers and for enhancing the communication of their expected impact.
- ESMA stresses the importance of the measurement and disclosure of non-performing loans by credit institutions, the ongoing relevance of the fair presentation of financial performance and disclosure on the impact of Brexit. ESMA also emphasises that the 2017 year-end will be the first time that the Accounting Directive (Directive 2013/34/EU, as amended by Directive 2014/95/EU) to disclose non-financial and diversity information will become applicable for certain large groups and undertakings.
- IFRS 3, Business Combinations and IAS 7, Statement of Cash Flows—ESMA reminds issuers of the continued relevance of the issues that were highlighted in its 2014 Report on IFRS 3, Business Combinations, as well as the importance of specific disclosure aspects in relation to IAS 7, Statement of Cash Flows.
The full statement can be found here:
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