Kenneth Owens FCA, MInstD, LIB’s Post

What are ESMA and National Competent Authorities going to focus on for issuers' 2024 corporate reporting? ESMA's 2024 European Common Enforcement Priorities are out! Read on... #ESMA #IFRS #sustainabilityreporting #ESEF

ESMA announces their enforcement priorities. More attention for the quality of digital reporting (in ESEF).

On 24 October ESMA has published this year‘s enforcement priorities. For the first time, ESMA also states clear expectations with respect to the correctness of ESEF filings, apart from the expectable priorities in relation to sustainability reporting and financial reporting. #kpmgaustria #kpmgfinancialservices

The European Securities and Markets Authority (#ESMA) issued its annual Public Statement setting out the European common enforcement priorities (ECEP) for the 2024 annual financial reports of issuers admitted to trading on European Economic Area (EEA) regulated markets. As well as sections on IFRS financial statements and sustainability statements, it includes a section on the European Single Electronic Format reporting (#ESEF) on 'Common errors found in the Statement of Financial Position'. ESMA, together with national enforcers in the EEA (enforcers), will pay particular attention to these areas when examining the application of the relevant reporting requirements. Definitely worth a read for anyone subject to #ESEF as the section covers (with examples): - correctness of mark-ups - extension taxonomy elements and anchoring - consistency and completeness of mark-ups - correctness of signs, scaling and accuracy - consistency of calculations ESMA underlines the responsibility of management and supervisory bodies of issuers as well as the importance of the oversight role of audit committees to: • ensure the overall internal consistency of the annual financial report, • implement and supervise internal controls, and • ultimately contribute to high-quality annual financial reports. #ixbrl #digitalreporting

An important reminder from the European Securities and Markets Authority (ESMA) regarding the importance of materiality considerations under the CSRD ESRS, the structure of sustainability statements under the CSRD ESRS and disclosures under Article 8 of the Taxonomy Regulation. #sustainability #reporting #materiality #taxonomy

The key takeaways from the ESMA’s 2024 European Common Enforcement Priorities (ECEP) fresh statement indicate that in 2025 ESMA and European regulators will prioritize:  ✅ Liquidity, accounting policies, judgments, and significant estimates within IFRS financial statements. ✅ Materiality considerations in line with the European Sustainability Reporting Standards (ESRS). ✅ Correcting common filing errors in the European Single Electronic Format (ESEF), specifically in the Statement of Financial Position. And as a cherry on cake ✅ Connecting financial and non-financial information. It was stated that bodies related to annual financial reporting should integrate these focus areas and recommendations into the preparation of 2024 financial reports. Relevance to each issuer’s operations should guide the application of these guidelines. However, it is still unknown what this means in practice. Link to ESMA News in comments. #EU #ESG #ESRS

ESMA Releases 2024 European Common Enforcement Priorities for Corporate Reporting The European Securities and Markets Authority (ESMA) has released its 2024 European Common Enforcement Priorities (ECEP) Statement. Key areas of focus for 2025 include: IFRS Financial Statements: Emphasis on liquidity, accounting policies, judgements, and significant estimates. Sustainability Reporting: Materiality in line with the European Sustainability Reporting Standards (ESRS) and Article 8 disclosures under the Taxonomy Regulation. ESEF Digital Reporting: Addressing common filing errors in the Statement of Financial Position. The ECEP underscores the need for coherence between financial and non-financial information. Issuers, auditors, and supervisors are advised to align their 2024 reports with these priorities, considering materiality and relevance. #ESMA #ECEP2024 #CorporateReporting #IFRS #SustainabilityReporting #ESRS #ESEF #FinancialRegulation #AccountingStandards #EURegulations https://lnkd.in/d3Zk7_uv

The IFRS Foundation has just released an insightful article on digital financial reporting, shedding light on its significance for investors, companies, and regulators alike.   Titled "Digital financial reporting - Facilitating digital comparability and analysis of financial reports," this article explores the creation process of digital financial reports, the invaluable benefits it offers to investors, companies, and regulatory bodies, and the crucial role played by IFRS digital taxonomies. Additionally, the article features spotlights on different jurisdictions, providing a comprehensive overview of digital financial reporting developments worldwide.   Notably, the article emphasises XBRL as the predominant computer-readable, structured data format for financial information, maintained by XBRL International, Inc. . With its adoption spanning over 70 countries, it's remarkable to recognise that CoreFiling supports most of these implementations worldwide.   #ifrs #financialreporting #digitaltransformation #xbrl #regulation

Questions have recently arisen regarding how to classify some financial assets with #ESG-linked features under existing requirements, such as a loan with an interest rate that may be lowered if a specified ESG target is met by the borrower. As the global market for these financial assets is rapidly growing, there has been an urgent need for clarification on how such features should be accounted for. The International Accounting Standards Board (IASB) has amended #IFRS9 Financial Instruments to include guidance on the classification of financial assets, particularly those with contingent features, along with amending #IFRS7 Financial Instruments: Disclosures. Under the amendments, certain financial assets including those with ESG-linked features could now meet the SPPI criterion, provided that their cash flows are not significantly different from an identical financial asset without such a feature. Also, companies will be required to provide additional disclosures on financial assets and financial liabilities that have certain contingencies. Read more about these amendments in the link below 👇

⌛ The CSRD will roll out in phases, affecting different types of entities at different times. Whether you're a large entity, a listed SME or operating outside the EU, it's crucial to understand when your reporting obligations kick in.  Let's dive into the timeline of when you need to start paying attention to this directive. Check out our new blog post!👉 https://lnkd.in/dgf4crrJ #ESG #CSRD #ESRS #businessplanning #datacollectionjourney #knowledgeseed