[ESMA32-63-1385 ] 2022 Corporate Reporting Enforcement and Regulatory Activities Report

The European Securities and Markets Authority (ESMA) has released its 2022 Corporate Reporting Enforcement and Regulatory Activities Report, which provides an overview of activities carried out by ESMA and enforcers on financial and non-financial information and European Single Electronic Format (ESEF) reporting.
Enforcers undertook 640 examinations of financial statements drawn up in accordance with IFRS, and took enforcement actions against 225 issuers to address material departures from IFRS. Key figures show that ESMA examined 16% of financial statements drawn up under International Financial Reporting Standards (IFRS), with a 38% action rate to address material departures from IFRS, while 13% of management reports were examined for compliance with ESMA’s Guidelines on Alternative Performance Measures (APMs), with a 17% action rate.
In 2023, ESMA will focus on ensuring adequate transparency about its enforcement priorities. The recent market events in the banking sector have emphasized the importance of disclosures by financial institutions regarding their exposure to interest rate and liquidity risks.
ESMA expects issuers, audit committees and auditors to take into account its European common enforcement priorities for 2022 annual financial reports when preparing and auditing financial reports.