ESMA’s 2017 Report on Enforcement and Regulatory Activities

The European Securities and Markets Authority (ESMA) has published its 2017 Annual Report on the Enforcement and Regulatory Activities of accounting enforcers in the European Union

The report identifies that in 2017 national enforcers reviewed the financial statements of 1,141 issuers (approximately 19% of issuers of securities listed on EU regulated markets), which led to action against 328 (32%) of the issuers examined. Areas where most infringements were identified by European enforcers remained the same comparing with 2016 and 2015, and related mainly to presentation of financial statements, accounting for financial instruments and impairment of non-financial assets.

In 2018 accounting enforcers will focus on the disclosure of the expected impact of the implementation of the new standards IFRS 9 and IFRS 15 in the period of their initial application.  Furthermore, in light of the emphasis on transitioning to a sustainable financial system in the EU and the new requirements regarding the disclosure of non-financial information, ESMA will coordinate the enforcement activities related to both non-financial and corporate governance information.

Further information, including access to the 2017 annual report, is available from ESMA’s web site here.