93 - Beyond the GAAP - 10-2015

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…
Enjoy your reading!