The European Securities and Markets Authority has published its European Common Enforcement Priorities for the 2026 annual financial reports of listed issuers.
Focus areas across financial and sustainability reporting
The priorities detail specific focus areas across IFRS financial statements, sustainability statements under the European Sustainability Reporting Standards, and European Single Electronic Format digital reporting.
For IFRS financial statements, ESMA highlights geopolitical risks and uncertainties alongside restructuring provisions and debt restructuring.
In sustainability reporting under ESRS, focus areas include progress in applying materiality assessments and presenting connected information on impacts, risks and opportunities, policies, actions and targets, and metrics.
For ESEF digital reporting, supervision focuses on common filing errors identified in the statement of changes in equity.
Regulatory context and enforcement database extract
ESMA reaffirms its commitment to simplification and burden reduction while maintaining a focus on investor protection and market stability.
The authority emphasizes the importance of materiality assessments when preparing and disclosing market information.
ESMA also published the 31st extract from the FRWG database of enforcement, which contains seven decisions on the application of IFRS Accounting Standards and Alternative Performance Measures guidelines.
Issuers, auditors, and supervisory bodies should apply the recommendations where relevant, taking into account materiality and operational context.
