Dr. Hanne Böckem
Partner, Audit, DPP
KPMG AG Wirtschaftsprüfungsgesellschaft
On the one hand, BaFin will focus on the disclosure of related party transactions in accordance with IAS 24. In doing so, BaFin points out that business relationships between related parties may not only be influenced by economically motivated objectives, so that they may differ from business transactions between unrelated parties. The users of the financial statements must be made aware of the possible consequences of a dependency on related parties by means of appropriate disclosures.
On the other hand, as in the previous year (see Express Accounting News 39/2021 and Accounting News 12/2021), BaFin will pay increased attention to comprehensible and verifiable accounting. In doing so, BaFin clarifies that a company's business transactions must generally be recorded in such a way that the accounting can provide an overview to an expert third party within a reasonable period of time. The exercise of accounting decisions must be verifiable. The aim of this focus is to ensure that issuers devote sufficient resources to good documentation.
Finally, BaFin draws attention to the focus areas announced by the European Securities and Markets Authority (ESMA) on 28 October 2022 (we reported on these in Express Accounting News 42/2022):
- Climate-related risks,
- Impact of the Russian invasion of Ukraine, and
- Macroeconomic environment.
BaFin's purely national audit priorities were published in a press release on its website. A more detailed presentation will be provided in Accounting News 12/2022, which is expected to be published on 15 December 2022.