ESMA publishes the 21st extract from the EECS’s database of enforcement decisions

The European Securities and Markets Authority (ESMA) has published an extract from its confidential database of enforcement decisions on financial statements.

Accounting issues on which national enforcement bodies reached decisions included:

• Use of a country risk premium in the impairment test of oil and gas assets
• Assessment of joint control
• Valuation and use of the equity method for participating interests with restrictions
• Restatement of comparative amounts
• Disclosures on a reverse factoring transaction
• Assessment of control over  investment funds
• Disclosure of unobservable inputs in fair value measurement
• Recognition and measurement of the proceeds from an arbitration agreement
• Impairment test of trademarks
• Recognition of deferred tax assets for carry forward of unused tax losses
• Definition of ‘economic environment’ and separation of foreign currency embedded derivatives in a power contract

Further information, including the report containing the background of each issue and the rationale for the enforcement decision is available from ESMA’s web site here.