Luxembourg issuers preparing their financial statements for the 2015 fiscal year in accordance with the IFRS must draw attention to various issues that will be the subject of specific monitoring by the Luxembourg financial supervisor.

The Luxembourg financial supervisor CSSF draws the attention of issuers subject to the Transparency Law preparing their financial statements in accordance with the IFRS to a number of issues that will be the subject of specific monitoring during its enforcement campaign planned for 2016.

  • European Common Enforcement Priorities: the following financial reporting topics will be specifically monitored during the enforcement campaign:
    • the impact of the financial market conditions on the financial statements;
    • the statement of cash flows and related disclosures; and
    • the fair value measurement and related disclosures.
  • Other points of attention identified by the CSSF: the CSSF has decided to also include in its 2016 enforcement campaign the following topics:
    • IFRS standards on consolidation: the work conducted in 2015 by the CSSF on the application of the newly issued or amended standards relating to consolidation in the financial statements of controlled issuers has stressed the existence of some specific issues. Therefore, the CSSF considers it necessary to carefully analyse how these standards are applied by issuers under its supervision.
    • Deferred tax assets according to IAS 12 “Income taxes”: the CSSF will particularly analyse the deferred tax assets recognised following deductible tax losses as well as the existence and valuation of future taxable profits. It will focus on the information provided on the judgments made for the recognition of these deferred tax assets, as required by IAS 12.
    • Quality of disclosures in financial statements: considering the requirements of IFRS, the materiality and specificities of the information provided in the financial statements should, according to the CSSF, be taken into account in order to foster the relevance of the information disclosed against an essentially exhaustive approach. The CSSF considers that the existing IFRS ensure the relevance and specificity of the information to be provided by issuers in their financial statements and therefore intends to pay special attention to this issue this year.

More information can be found here.