In our autumn 2021 newsletter, we informed you about ESMA, which was established in the year 2011. ESMA is an independent body of the European Union, whose main objectives are protection of investors, proper functioning of the markets and financial stability. In addition to the above-mentioned aims, ESMA also oversees compliance with measures adopted by securities supervision authorities and adoption of emergency measures in crisis situations.

On 30 March 2022, ESMA issued a report on the enforcement of the application of accounting standards and on the regulatory activities of supervisory authorities that were carried out in 2021.

711 audits of financial statements compiled according to the IFRS were performed. In 250 cases, a significant deviation from the IFRS rules was identified. The main areas (same as in the past), where inaccuracies have been identified, are in the areas of accounting for financial instruments, revenue recognition, impairment of non-financial assets and disclosure of financial statements.  

The report itself can be found at the ESMA website.