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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 |
|---|---|
| IFRS 16 | 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.
IFRS services
Our IFRS specialists are on hand to help you achieve compliance and organize your financial reporting process (IFRS training, IFRS eLearning, IFRS conversion, application of new standards, specific IFRS matters).
Illustrative disclosures (PDF, 3MB)
Illustrative disclosures illustrate one possible format for financial statements prepared under IFRS, based on a fictious multinational corporation.
Disclosure checklist
Disclosure checklist identifies the disclosure requirements for annual reporting periods.
CSSF Enforcement activities
Within the context of its mission of supervising securities markets, the CSSF is in charge of examining the financial information published by issuers of securities and ensuring that the financial information complies with the relevant reporting framework.
IFRS Blog
KPMG Luxembourg's experts blog includes articles on the latest IFRS topics.
Illustrative disclosures for banks (PDF, 2.8MB)
Illustrative disclosures illustrate one possible format for financial statements prepared under IFRS, based on a fictitious banking group involved in a range of general banking activities.
IFRS calendar (PDF, 2.8MB)
The IFRS Calendar provides a list of IFRS with effective dates inside and outside the EU. It also gives an overview of new amendments and interpretations.
Leases: IFRS 16 vs Lux GAAP
This publication aims to help you understand the significant differences between IFRS 16 Leases and Lux GAAP, which applies to entities subject to the Law of 19 December 2002 as amended