ESMA Publishes Report on Regulatory Activities of Accounting Enforcers
ESMA published its annual report on the enforcement and regulatory activities of accounting enforcers in EU. This report provides an overview of the activities related to the supervision and enforcement of financial and non-financial information carried out during 2018 at the European and national levels in EU and European Economic Area. It also addresses contribution of ESMA to the development of the single rulebook in corporate reporting, such as the process of the European system of endorsement of IFRS and the interaction with the IASB, along with other relevant activities in the corporate reporting area. In the coming years, the focus of enforcers will be on IFRS standards, including IFRS 9, IFRS 16, and IFRS 17.
In 2018, the efforts of ESMA to deepen convergence in the enforcement of financial information particularly focused on the harmonization of the application and enforcement of new IFRS standards IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments, as announced in the 2017 ESMA common enforcement priorities. European enforcers expanded, for the first time, their supervisory activities to non-financial information on environmental, social, and governance (ESG) matters, published by issuers in accordance with new requirements that came into force at the European level.
In 2019, ESMA and European enforcers will continue to focus on consistency in the application and enforcement of the new standards that came into force in 2018 (IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments) and on the disclosure of the expected impact of implementation of IFRS 16 Leases. ESMA will also continue to actively contribute to the development of high-quality accounting standards by providing input to consultations conducted by IASB and EFRAG. Additionally, ESMA will closely monitor and contribute to the endorsement process of the IFRS 17 Insurance Contracts. When it comes to non-financial information, one of the focus areas for enforcers will be strengthening the harmonization and enforcement of the disclosures of non-financial information, notably those related to environmental and climate change-related matters.
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Keywords: Europe, EU, Banking, Insurance, Securities, Accounting, IFRS Supervisory Convergence, Enforcement Activities, IFRS 9, IFRS 15, IFRS 16, IFRS 17, ESMA
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