The European Securities and Markets Authority has outlined the European Common Enforcement Priorities for listed issuers’ 2025 annual financial reports, covering IFRS financial statements, sustainability statements prepared under the European Sustainability Reporting Standards, and European Single Electronic Format digital reporting. For IFRS reporting, the priorities focus on disclosure of geopolitical risks and uncertainties and on segment reporting. For sustainability statements, ESMA highlights materiality considerations under ESRS and the scope and structure of the sustainability statements. For ESEF reporting, it flags common filing errors identified in the statement of cash flows. The publication also underscores the need for connectivity between financial and sustainability information, awareness of recent IFRS developments, and consistent use of alternative performance measures, alongside a fact-finding exercise reviewing 2024 ESRS Set 1 reporting practices with a focus on disclosures about the double materiality assessment process and outcomes. Issuers, auditors and supervisory bodies are expected to consider these topics and recommendations when preparing, auditing and supervising 2025 annual financial reports, with issuers applying them based on materiality and relevance.
European Securities and Markets Authority 2025-10-14
European Securities and Markets Authority sets 2025 common enforcement priorities for IFRS, ESRS and ESEF reporting
The European Securities and Markets Authority has set the 2025 priorities for annual financial reports, focusing on IFRS financial statements, sustainability statements, and digital reporting. Key areas include geopolitical risk disclosures, segment reporting, materiality in sustainability statements, and common cash flow statement errors. Issuers, auditors, and supervisory bodies should integrate these priorities into their processes.