The Cyprus Securities and Exchange Commission (CySEC)
has issued a circular notifying issuers of securities which are
listed for trading on the Cyprus Stock Exchange or any other
regulated market of its priority issues for financial
statements and annual reports for 2017. CySEC's priority issues
are identical to those set out in the latest Public Statement
on European Common Enforcement Priorities published by the
European Securities and Markets Authority (Esma). The Public
Statement sets out the priorities jointly agreed by national
supervisory authorities of the countries of the European
Economic Area in relation to financial statements for the year
2017 regarding the implementation of international financial
reporting standards (IFRS), with the objective of achieving
consistency in the application of the IFRS in Europe.
The common European priorities for 2017 adopted by CySEC are
- disclosure of the expected impact of the
implementation of major new standards in the period of their
initial application, particularly IFRS 9 – Financial
Instruments, IFRS 15 – Income from Contracts with
Customers, and IFRS 16 – Leases.
- recognition, measurement and disclosure of
specific matters in relation to IFRS 3 – Business
and Business Combinations.
- issues arising from International
Accounting Standard 7 – Statements of Cash
- In addition, supervisory authorities will continue to
monitor issues identified as priorities in earlier years,
including presentation of financial performance and
disclosure of any effects on the business of the British
decision to leave the EU.
The CySEC circular also draws attention to recent changes to
the Companies Law to implement Directive 2014/95/EU, which
introduced new disclosure requirements for large businesses and
groups regarding non-financial information and information on
diversity. The new requirements apply for the financial year
2017 and later years.
CySEC recommends that issuers with securities admitted to
trading on a regulated market and their auditors take due
account of the issues and recommendations contained in the Esma
Public Statement when compiling financial statements and annual
reports for 2017, since CySEC will take the priorities into
account in its assessments of these documents and will take
appropriate action where deemed necessary.