ESMA Discloses Another Set of Enforcement Related Decisions
The ESMA has disclosed another set of excerpts from its database of confidential enforcement related decisions, which were arrived at by the European national enforcers. This particular set is related to the decisions taken with regard to International Accounting Standards 38, 27, 36, 18, IFRS 8 and IAS 40/IAS 1.
The Europe based national enforcers of finance related information review as well as monitor statements that are published by issuers. They also review and monitor the securities that are traded in the Europe’s regulated market. They are also responsible for preparing their (issuers) statements as per the IFRS and check whether the statements is in accordance with the International Financial Reporting Standards as well as other reporting related requirement, in addition to the prescribed national law or not.
The European Securities and Markets Authority has created a secret database that contains enforcement related decisions that have been reached by the enforcers from Europe as an information source for fostering suitable application of the International Financial Reporting Standards.
The publishing of enforcement related decisions have been done with an intention to inform and educate the participants from the market regarding the accounting procedures and treatments that the Europe’s national enforcers can consider to be in accordance with the International Financial Reporting Standards i.e. whether the procedures/treatments are within an acceptable by the IFRS or not. The European Securities and Markets Authority also feels that the publishing of the decision as well as stating the logic behind taking them is going to help in the application of the International Financial Reporting Standards consistently in the EU.
Some of the topics that the latest set covers include, International Accounting Standard 38 Intangible Assets, International Accounting Standard 27 Consolidated and Separate Financial Statements, International Accounting Standard 40 Investment Property and IAS 1 Presentation of Financial Statements, International Accounting Standard 18 Revenue recognition — transfer of land to a housing cooperative, International Financial Reporting Standard 8- Operating Segments and International Accounting Standard 36.
The ESMA is basically an independent European Union Authority, which is responsible for safeguarding EU’s financial system’s stability. It is responsible for ensuring transparency, integrity and efficiency and proper functioning of the securities related market and improving protection for investors.