CESR published a follow-up statement on an earlier statement (Ref. CESR/09-821) on the “Application of Disclosure Requirements related to Financial Instruments in the 2008 Financial Statements of Financial Institutions” (hereafter “CESR on 2008’s Financial Statements”) published in November 2009.
This 2009 Statement presents the actions taken by European enforcers on the infringements identified in the 2008 IFRS Financial Statements. It also presents a comparative analysis of the level of compliance on mandatory disclosures based on the review performed by CESR with respect to the sample of 96 financial institutions analysed in 2008 (Ref. CESR/10-1150).
Enforcement measures taken in 2010 in relation to financial instruments disclosures
As part of their supervisory role in relation to listed companies, European enforcers took various types of actions on the infringements identified in the 2008 IFRS financial statements, based on materiality, relevance to the issuer and the legal powers available to the enforcers in each country.
As such, around 250 issuers have been subject to actions taken by enforcers, of which 28 were included in the sample of financial institutions reviewed for the purpose of CESR 2008 Statement.
Enforcers supplemented such measures by alerting issuers on areas such as the fair value hierarchy, impairment of financial assets and liquidity risk disclosures which were to be closely monitored in the process of the preparation of the 2009 IFRS financial statements.
Areas of significant improvement in 2009 IFRS Financial Statements
Generally, improvements have been identified in all areas. The detailed results on improved compliance are presented in section two of the report either as “significant” or as “some improvement”, based on whether the level of compliance has increased by more or less than 15% compared to the previous period. Disclosure requirements related to valuation techniques, an entity’s own credit risk, credit risk, day one profit or losses and special purposes entities were areas where significant improvement was noted.
The report also outlines that the amendments to IFRS 7, mandatory for the periods started after 1 January 2009, and designed to provide information on the fair value hierarchy used by the companies also saw a high level of compliance.
Full statement
© CESR - Committee of European Securities Regulators
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