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Tom Van Dyck
+32 475 90 90 91
t.vandyck@liedekerke.com

Freya Mareels 
+32 475 25 11 50
f.mareels@liedekerke.com

Wim Dedecker
+32 491 36 03 99
w.dedecker@liedekerke.com

ESMA calls for transparency on COVID-19 effects in half-yearly financial reports

ESMA has published a Public Statement addressing the implications of the COVID-19 pandemic on the half-yearly financial reports of listed issuers. In particular, this Statement addresses the preparation of the interim financial statements according to IFRS and the interim management reports for the 2020 half-yearly reporting periods. 

In its Public Statement, ESMA provides recommendations and highlights: 

• the need for issuers to provide relevant and reliable information that is useful to investors to adequately reflect the current and expected impact of the COVID-19 situation on the financial position, performance and cash-flows of issuers. Therefore, the publication of the half-yearly financial reports may not be unduly delayed;

• the importance of updating the information included in the latest annual accounts to adequately inform stakeholders of the impacts of the COVID-19 pandemic, in particular in relation to significant uncertainties and risks, going concern, impairment of non-financial assets and presentation in the statement of profit or loss; and

• the need for issuers to provide detailed and entity specific information in their interim management reports regarding, amongst other things, the past and expected future impact of COVID-19 on the strategic orientation and targets, operations, performance of issuers as well as any mitigating actions put in place to address the effects of the pandemic.