The European Securities and Markets Authority (ESMA) has issued its latest annual public financial statement which prescribes the common enforcement priorities for the 2021 annual financial reports of listed entities. They relate to financial and non-financial impacts of COVID-19 and climate related matters, expected credit losses disclosures of credit institutions and certain important matters related to Alternative Performance Measures (APMs) for IFRS financial statements and non-financial statements. In this edition of Accounting and Auditing Update (AAU), we will discuss in detail each of the key priority areas along with the recommendations provided by ESMA in its statement to be considered by the listed entities while filing their financial results.

Non-Banking Finance Companies (NBFCs) have played a significant complementary role in financial intermediation, along with banks in India. With a view to align the regulatory framework of NBFCs with their changing risk profiles, recently the Reserve Bank of India (RBI) has prescribed a revised ‘scale-based’ regulatory framework for the NBFC sector. The regulatory framework bifurcates all the NBFCs into four layers based on their size, activity, and perceived riskiness. The revised regulatory framework is applicable with effect from 1 October 2022. In our article on the topic, we will discuss the key features of the revised regulatory framework including basis of classification of NBFCs in each of the specified layers.

Recently, the Securities and Exchange Board of India (SEBI) has issued a slew of amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR). The amendments introduced key revisions to the related party framework prescribed under the LODR which, inter alia, includes revised definition of related party and Related Party Transactions (RPTs), revision of materiality threshold for identification of material RPTs and revised norms related to approval of RPTs by shareholders and audit committee. Our regulatory updates article covers these and other important regulatory developments in India and internationally