Stephan Lego-Deiber

Partner, IFRS Leader

KPMG in Luxembourg


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The Luxembourg regulator, the CSSF, has issued a statement highlighting the common areas of focus for issuers subject to the transparency law. Not surprisingly, the focus areas are perfectly in line with the enforcement priorities issued by the European regulator, ESMA, to promote the consistent application of IFRS standards.         

Our IFRS enforcement priorities checklists guide you through the different requirements of your 2019 annual reports so that you are not missing out on essential requisites for all entities.

A tailored checklist for banking issuers

Credit institutions are subject to specific requirements under IFRS 9. Our IFRS enforcement priorities checklist for credit institutions provides a comprehensive checklist to guide you through financial statement preparation.

CSSF areas of focus for IFRS financial statements

This table convers the main disclosure requirements for all entities, and for credit institutions..

 Topics Disclosure requirement

Determination of the lease term, which may require significant judgement

Determination of discount rate(s)

Disclosure of significant judgements and assumption made in applying IFRS 16

Presentation requirements of items related to leases in the primary FS and notes > reminder that carrying amount of RoU must be disclosed separately by class of underlying assets

Fully compliant transitional disclosures, including any difference between operating leases commitments under IAS 17 and leases recognised under IFRS 16.

IFRS 9 - Credit institutions

Determination of the ECL and forward looking information

Assessment of SICR

ECL disclosures, especially key assumptions, parameters, sensitivity analysis and credit risk models

IFRS 15 - Corporate issuers

Detailed and entity specific information on accounting policies on revenue recognition, significant judgements and estimates and contract balances

Disaggregation of revenue into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors

IFRIC 23 Transparent and entity-specific disclosure of accounting policies regarding the recognition, measurement, presentation and disclosure of uncertain tax position.
IAS 12

Attention to the ESMA Public Statement on IAS 12

Key focus on issuer's judgements related to recognition, measurement, re-measurement and disclosure of DTA

Attention to IFRS IC discussions on presentation of assets and liabilities related to uncertain tax treatments

IFRS 3 - valuation of intangible assets

Significant judgements underlying the conclusion whether separation of intangible assets in a business combination is deemed necessary

Disclosure of sources of estimation uncertainty when a significant risk exists within the next financial period of material adjustment to the carrying amount of the assets in relation to FV measurements used in the business combination

Valuation methods and assumptions used in the valuation of intangible assets acquired in a business combination

Priorities covered in the checklists:

  • IFRS 9 Financial Instruments
  • IFRS 15 Revenue from Contracts with Customers
  • IFRS 16 Leases
  • IAS 12 Income taxes
  • IFRIC 23 Uncertainty over Income Tax Treatments
  • IFRS 3 Business Combinations 

Next steps

Are you impacted by the issues touched upon in this report? Get in touch with Stephan Lego-Deiber and his team to discuss your perspective or challenges.

Further resources

Below, some must-have tools to prepare your 2019 annual reports.