The Statement on Priorities identifies topics which ESMA, together with European national enforcers, see as key areas when they examine listed companies’ 2015 financial statements. The common enforcement priorities focus on recurring issues identified in the application of IFRS requirements and the current economic climate where it may pose challenges to issuers, in particular, the current interest rate environment, foreign exchange rate and country risks.
The common enforcement priorities encompass the following topics:
- Impact of financial markets conditions on financial statements; ESMA urges listed companies and their auditors to pay particular attention to the current interest rate environment, country risk in relation to where their business is located and exposure to foreign exchange rates and high volatility for commodities.
- Statement of cash flows and related disclosures: issuers should ensure the statement and disclosures are consistent with the other primary financial statements.
- Fair value measurement and related disclosures: ESMA considers there is substantial room to improve measurement and disclosure related to non-financial assets and liabilities in particular.