• IFRS Bulletin 2018-09

IFRS Bulletin 2018-09

01. Februar 2019



The European Securities and Markets Authority (ESMA) has issued a Public Statement identifying enforcement priorities for listed companies’ 2018 financial statements. The Statement is directed at listed companies and their auditors and sets out the areas ESMA and national enforcers will focus on in particular when they examine listed companies’ financial statements in order to promote consistent application of International Financial Reporting Standards (IFRSs) across the European Union (EU).

The Statement identifies the following common priorities, detailing the financial reporting matters that companies should pay attention to:

  • application of IFRS 15 Revenue from Contracts with Customers, including disclosures surrounding the transition and significant judgments made in areas such as identifying performance obligations, determining the transaction price and the timing of revenue recognition;
  • application of IFRS 9 Financial Instruments for both corporate and credit institutions (e.g. banks and lenders), including disclosures surrounding the transition and significant judgments made in areas such as the definition of default, identifying a significant increase in credit risk, the incorporation of forward-looking information and the reconciliation of expected credit losses from period to period; and
  • disclosure of the implementation and expected impact IFRS 16 will have, which becomes effective for periods beginning on or after 1 January 2019.

The Statement also:

  • reminds issuers of the requirements in Article 19a of the Accounting Directive concerning transparency surrounding environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters;
  • urges issuers to meet the principles in the Guidelines on Alternative Performance Measures (APMs) when including APMs in annual financial reports, and provides additional guidance on the effects that may be felt by IFRS 9, 15 and 16 on APMs;
  • suggests entities should disclose the associated risks and expected impacts of Brexit on their business strategy and activities either in the IFRS financial statements or in the management report, with special consideration given the timing of Brexit negotiations that may be ongoing close to year-end, or subsequent to 31 December 2018.

This bulletin summarises the main points in the Public Statement.


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