IAASA, Ireland’s accounting enforcer, has today published its financial reporting decisions arising from its examination of the annual financial statements of Morgan Stanley Asia Products Limited (‘the issuer’) for the year ended 31 December 2014.
The two key decisions relate to:
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the presentation of gains/losses on financial instruments on the face of the Statement of Comprehensive Income (Profit and Loss Account); and
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the classification and presentation of the Statement of Cash Flows (the issuer presented all cash flows as “operating” cash flows and did not classify any cash flows as “investing” or “financing”).
In addition, the directors of Morgan Stanley Asia Products Limited provided undertakings to IAASA to amend the presentation and to provide additional disclosures in future financial statements in relation to the:
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credit risk disclosures (IFRS 7);
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market price risk disclosures (IFRS 7);
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disclosures related to offsetting of financial assets and financial liabilities: master netting arrangements or similar agreements (IFRS 7);
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related parties transactions (IAS 24);
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operating segment disclosures (IFRS 8); and
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Management Report – fair review and principal risks and uncertainties (Regulation 5(4)(c)(ii)).
The issuer provided IAASA with undertakings to enhance presentation, classification and disclosure in future periodic financial statements
Further details of the financial reporting decisions can be accessed here.
The Transparency (Directive 2004/109/EC) (Amendment) Regulations 2015 (S.I. No. 44 of 2015) came into operation on 9 February 2015. The effect of these Regulations is that IAASA is afforded a wider discretion in terms of publication of its financial reporting decisions than previously. IAASA issued its final Policy Paper on Publication of Financial Reporting Enforcement Findings on 17 July 2015 after issuing a draft policy paper for comment.