The European Securities and Markets Authority (ESMA) has issued a Public Statement on the implications of Russia’s invasion of Ukraine on half-yearly financial reports.
The Public Statement, with the aim of promoting investor protection, provides important messages to preparers of financial reports including:
the main IFRS requirements which may be applicable in the context of Russia’s invasion of Ukraine (e.g., impairment of non-financial and financial assets, and loss of control)
ESMA’s expectations regarding disclosures in financial statements (e.g., judgements made, significant uncertainties, and the impact on going concern);
ESMA’s expectations regarding disclosures in interim management reports (e.g., direct and indirect impact of Russia’s invasion of Ukraine and sanctions on entities’ strategies, operations, financial performance, financial position and cash-flows, measures taken to mitigate the impacts, and cybersecurity risks; and
a reminder of entities' obligations regarding the Market Abuse Regulation.
ESMA’s Public Statement is available here.