Beyond the GAAP no.93 - October 2015

As autumn comes around again, it is time for ESMA’s annual publication on its priorities for 2015 financial statements. This year it is focusing on two key topics: the impact of financial market conditions (interest rates, commodities prices, country-specific risks) on issuers’ financial situation, and the statement of cash flows, which is key to understanding and assessing issuers’ performance.

ESMA has also taken the opportunity to remind issuers of the need to improve the quality of financial statements and other financial reporting. With this in mind, ESMA simultaneously published a ‘Public Statement’ entitled Improving the Quality of Disclosures in the Financial Statements. Coincidentally, the IASB published its draft ‘Practice Statement’ on the application of materiality to financial statements around the same time.

Hopefully, these various initiatives should encourage issuers to rethink their financial statements and the layout and content of the notes…

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