Tuesday, 8th March, 2011: The European Securities and Markets Authority (ESMA) has published a tenth extract from its database of enforcement decisions taken by EU national supervisors of financial information that participate in the European Enforcer Coordination Sessions (EECS). EU national supervisors monitor and review the financial statements of issuers and consider whether they comply with International Financial Reporting Standards (IFRS) and other applicable reporting requirements, including relevant national law.
Following a decision by the European Union, the Committee of the European Securities Regulators (CESR) has been transformed into the European Securities and Markets Authority (‘ESMA’) with effect from 1 January 2011. As the successor organisation to CESR, ESMA will complete all the engagements entered into by CESR in existence at the transition date
ESMA through its predecessor organisation CESR has developed a confidential database of enforcement decisions taken by individual EU national supervisors as a source of information to foster appropriate application of IFRS. All decisions submitted to the database are considered as appropriate for publication, unless:
- similar decisions have already been published by ESMA, and publication of a new decision would not add any substantial value to the fostering of consistent application;
- the decision deals with a simple accounting issue that, even having been considered a material infringement, does not in itself have any accounting merit;
- there is no consensus within the EECS to support the submitted decision;
- a particular EU National enforcer, on a grounded and justified basis, believes that the decision should not be published.
In response to concerns about confidentiality and privacy laws, which vary between EU jurisdictions, extracts do not, usually, include the name of the issuer or the enforcer or any other details that would enable the issuer or its jurisdiction to be identified.
IAASA is a member of the EECS and the Authority’s Head of Financial Reporting Supervision is also a member of the EECS’ Agenda Group.