FRS enforcement, i.e. supervision of listed companies’ compliance with the International Financial Reporting Standards (IFRSs), is risk-based supervision. Based on separately specified risk factors, the FIN-FSA selects the companies whose financial statements and other financial reports are from time to time subject to a full review. The FIN-FSA may also conduct a partial review, in which case financial statements and reports are examined partly in terms of some separately selected aspect of financial reporting. Such thematic reviews have been conducted in the case of goodwill impairment testing and corporate acquisitions, for example. IFRS enforcement also includes reactive supervision where the FIN-FSA examines, based on stock exchange announcements or complaints, the appropriateness of the individual accounting methodology selected by the company.
IFRS enforcement focuses on listed companies’ and supervised entities’ financial statements, management reports and interim reports. The scope of supervision comprises both consolidated financial statements and financial statements of separate companies.
The supervisory work also comprises reports on various parts of the financial statements. We publish these reports on our website. We also negotiate with listed companies and interested parties, including representatives of the auditing sector.
What does IFRS enforcement mean for listed companies? (in Finnish)
The FIN-FSA actively participates in the cooperation between financial reporting supervisors in the EU. The Corporate Reporting Standing Committee (CRSC), which is a permanent committee of the European Securities and Markets Authority (ESMA), coordinates supervision and other activities of its member organisations in matters related to financial reporting of listed companies.
The CRSC has developed supervisory cooperation and harmonised supervisory methods for financial reporting in Europe. The objective of the cooperation is to promote uniform application of the IFRSs. Supervisory cooperation and coordination are crucial as the regulation is global, and supervisory methods should therefore be internationally sustainable.
The CRSC regularly arranges meetings for supervisors of financial reporting (European Enforcers Coordination Sessions, EECS), in which the FIN-FSA also takes part. The EECS maintains a common enforcement database for all key decisions on the supervision of financial reporting taken by EU member state supervisors. ESMA publishes these decisions 2-3 times a year. The purpose of publishing the decisions is to provide market participants with information on the European supervisors’ observations on financial reporting.
|IFRS 1 First-time Adoption of IFRSs||Nina Lindeman|
|IFRS 3 Business Combinations||Nina Lindeman|
|IFRS 4 Insurance Contracts||Pentti Soininen|
|IFRS 5 Non-current Assets Held for Sale and Discontinued Operations||Nina Oker-Blom|
|IFRS 7 Financial Instruments: Disclosures||Leena Sinisalo|
|IFRS 8 Operating Segments||Laura Heinola|
|IFRS 9 Financial Instruments||Virpi Haaramo, Leena Sinisalo|
|IFRS 10 Consolidated Financial Statements||Nina Lindeman|
|IFRS 11 Joint Arrangements||Nina Lindeman|
|IFRS 12 Disclosure of Interests in Other Entities||Nina Lindeman|
|IFRS 13 Fair Value Measurement||Nina Oker-Blom, Leena Sinisalo|
|IFRS 15 Revenue from Contracts with Customers||Laura Heinola, Riitta Pelkonen|
|IFRS 16 Leases||Nina Oker-Blom, Leena Sinisalo|
|IFRS 17 Insurance Contracts||Pentti Soininen, Virpi Haaramo|
|IAS 12 Income Taxes||Riitta Pelkonen|
|IAS 19 Employee Benefits||Pentti Soininen|
|IAS 21 The Effects of Changes in Foreign Exchange Rates||Leena Sinisalo|
|IAS 24 Related Party Disclosures||Laura Heinola|
|IAS 27 Separate Financial Statements||Nina Lindeman|
|IAS 28 Investments in Associates and Joint Ventures||Nina Lindeman|
|IAS 32 Financial Instruments: Presentation||Virpi Haaramo, Leena Sinisalo|
|IAS 33 Earnings per Share||Laura Heinola|
|IAS 36 Impairment of Assets||Nina Oker-Blom|
|IAS 37 Provisions, Contingent Liabilities and Contingent Assets||Riitta Pelkonen|
|IAS 38 Intangible Assets||Riitta Pelkonen|
|IAS 39 Financial Instruments: Recognition and Measurement||Virpi Haaramo, Leena Sinisalo|
|IAS 40 Investment Property||Nina Oker-Blom|