IFR Bulletin 2018/04

29 August 2018

BDO Global - Audit & Assurance provides its clients and business partners with news on development in the field of international financial reporting through the IFR Bulletins - one of BDO's regular publications, focusing on the latest IFRIC interpretations, exposure drafts and amendments of existing standards. Another interesting topic of IFR Bulletins is the interpretations of The European Securities and Markets Authority (ESMA) reports focusing on accounting and financial reporting.

In this IFR Bulletin we bring you the overview of the 22nd Extract from the EECS’s (European Enforcers Co-ordination Sessions) Database of Enforcement.

ESMA regularly publishes extracts from its database, with the intention of informing market participants about which accounting treatments EU National Enforcers, may consider as complying with IFRSs and thus contribute to a consistent application of IFRSs in the European Union. However, decisions taken by EECS do not constitute generally applicable interpretations of IFRS.

The 22nd Extract published by ESMA deals with various cases of inadequate application of IFRS regulation. We would like to draw your attention especially to the following topics:

  • Presentation of revaluation losses of assets,
  • Demerger and distribution of a segment to the issuer’s shareholders,
  • Presentation and disclosure of restricted cash balances,
  • Purchase price allocation of a group of acquired assets.

Please speak to your BDO contact if you would like to discuss any aspects of the publication or contact the BDO Audit office for further information.

Archive of all published IFR Bulletins is available from BDO’s Global website: https://www.bdo.global/en-gb/services/audit-assurance/ifrs/ifr-bulletins