Closing of the 2024 accounts: The AMF publishes recommendations and the results of its examinations of financial statements

Main points for attention and recommendations

New standards and regulations

In keeping with its previous recommendations on the effects of climate risk and the importance of ensuring consistency between the information provided outside the financial statements (notably in the sustainability report) and the information disclosed in the financial statements, the AMF draws issuers’ attention to the publication, in April 2024, of a decision by the International Financial Reporting Standards Interpretations Committee (IFRS IC) on the accounting consequences of climate commitments made by companies.
The AMF also invites companies to take note of the requirements of the new IFRS 18 standard, applicable to financial years beginning on or after January 1, 2027, and to anticipate any work required to update information systems and the internal processes for producing financial statements, as well as their impact on the communication of financial performance, both in the financial statements and elsewhere.

Liquidity risk

The first part of the recommendations deals with liquidity risk. In addition to the new disclosure requirements introduced by the standards, the AMF and ESMA wished in particular to emphasise the granularity of the information to be disclosed about supplier finance arrangements and the detailed presentation of covenants attached to finance arrangements, as liquidity remains a major point for attention in the current macroeconomic context.

Accounting policies, judgements and significant estimates

Descriptions of accounting methods and principles often continue to be very general. This second recommendation therefore revisits the disclosures expected from companies, so that they can adapt these descriptions to their own specific circumstances, particularly in the event that they exercise control over another company or recognise revenue from ordinary activities stemming from contracts with clients.

Focus on electronic reporting

This year, for the first time, ESMA has published priorities in relation to the application of ESEF reporting. Through its controls, the AMF has identified a number of areas for vigilance as regards the tagging of primary financial statements and the notes to these.
As every year, the AMF reiterates that it remains at the disposal of companies and their statutory auditors to discuss key financial issues prior to the closing of accounts.