• 1000

BaFin will focus on reviewing the recoverability of recognised assets within the scope of IAS 36 and IFRS 9. The transformation towards digital and sustainable business models on the one hand and geopolitical and macroeconomic developments on the other pose challenges for many capital market-oriented companies. Therefore, companies should test financial and non-financial for impairments.

With regard to non-financial assets, the focus is on whether internal or external indications of possible impairment have been identified as triggering events and taken into account accordingly. With regard to financial assets, the focus is on the recoverability of receivables.

As impairment tests always involve judgement and estimation uncertainties, BaFin expects transparent and comprehensible documentation and presentation of the underlying assumptions.

Finally, BaFin draws attention to the priorities for IFRS financial statements announced by the European Securities and Markets Authority (ESMA) on 24 October 2024 (we reported on these in Express Accounting News 47/2024 ): Liquidity considerations and disclosures in the notes on accounting policies, judgements and estimation uncertainties.

BaFin's purely national audit priorities were published in a press release on the BaFin website. A more detailed presentation will be provided in Accounting News 12/2024, which is expected to be published on 16 December 2024.

KPMG Express Accounting News

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