ESMA releases Statement on implications of war in Ukraine on half-yearly financial reports

ESMA has released a public Statement on the implications of Russia’s invasion of Ukraine on half-yearly financial reports. While noting the significant challenges to business activities and effects on the global economic and financial system posed by the invasion, the Statement provides overarching messages to issuers and auditors including:

• A reminder of the main IFRS requirements which may be applicable in the context of Russia’s invasion of Ukraine e.g., impairment of non-financial and financial assets, and loss of control;
• ESMA’s expectations regarding disclosures in financial statements e.g., judgements made, significant uncertainties, and going concern risks;
• ESMA’s expectations regarding disclosures in interim management reports e.g., direct and indirect impact of Russia’s invasion of Ukraine and imposed sanctions on issuers’ strategic orientation and targets, operations, financial performance, financial position and cash-flows, measures taken to mitigate the impacts, and cybersecurity risks; and
• A reminder of issuers' obligations vis-à-vis the Market Abuse Regulation.

The Statement may be accessed here.