The attached report provides an overview of the activities of the European Securities and Markets Authority (ESMA) and the accounting enforcers in the European Economic Area (EEA) when examining compliance of financial information provided by issuers listed on regulated markets:
The report is long but the three main things to take out of it are:
- There appears to be on-going issues with entities determining whether the control/don’t control other entities i.e. whether they should consolidated these other entities or not.
- There appears to be on-going issues with the recognition of deferred tax assets arising from past company losses.
- APMs’ (Alternative Performance Measures) are continuing to grow in significance and prominence in annual reports and it is likely that we will see continued increase in the regulation around this area.