The European Securities and Markets Authority (ESMA) published its annual public statement on the common European enforcement priorities on Friday 28 October. In 2022, it has prioritised the impact of Russia’s invasion of Ukraine, the macroeconomic environment and climate-related issues in financial and non-financial information.
With regard to International Financial Reporting Standards (IFRS), ESMA has called for consistency between the information disclosed in IFRS financial statements and non-financial information on climate-related issues, the impact of climate risks in the impairment of non-financial assets.
It also called for transparency on the impacts of Russia’s invasion of Ukraine on issuers’ financial statements.
It also recommended taking into account the current macroeconomic environment when considering employee benefits, the impairment of non-financial assets, revenue recognition and expected credit losses for financial instruments (see EUROPE 13049/12).
Its recommendations on non-financial information focused on the climate, including transition plans and transparency on the objectives of these plans (see EUROPE 13034/8). It called for improved information on eligibility and taxonomy alignment from non-financial companies and the need for financial companies to prepare for taxonomy alignment reporting in 2024.
As for alternative performance measures (APMs), the statement emphasises that issuers are expected to comply with the APM guidelines.
Finally, ESMA points out that from 2022 onwards and in accordance with the regulatory technical standard on the European Single Electronic Format (ESEF), issuers must block tag notes to financial statements.
To view the ESMA statement: https://aeur.eu/f/3uu (Original version in French by Anne Damiani)