Brussels, 30/03/2016 (Agence Europe) - The European Securities and Markets Authority (ESMA)'s 2015 report on the application of the International Financial Reporting Standards (IFRS), published on Tuesday 29 March, highlights the need for greater consistency in the use of these standards.
ESMA worked with the national authorities to examine the compliance with these standards of 189 listed companies in 26 countries of the EU. This evaluation has led to 40 measures being taken to remedy “shortcomings”, for instance on the recognition of deferred tax assets arising from tax losses.
The report also examined how the national regulators reviewed the financial statements of around 1,200 listed companies in the EU (20% of the total). Action was taken against 273 issuers (25% of those examined) whose level of compliance with the European accounting rules was considered “low”. The main problems observed related to the presentation of financial statements, the impairment of non-financial assets and accounting for financial instruments.