The Financial Markets Authority (AMF) has released its recommendations for the 2026 account closing, aligned with the ESMA's priorities. These guidelines aim to improve the quality and transparency of issuers' financial information, particularly in light of the upcoming implementation of the IFRS 18 standard and persistent geopolitical tensions.
The IFRS 18 standard, mandatory for financial years starting January 1, 2027, will introduce a new presentation for financial statements and require comparative information. The AMF emphasizes the importance of transparent communication regarding the standard's impacts, especially concerning management-defined performance measures (MPM), which must be justified and reconciled with IFRS aggregates. The AMF also highlights the implications of IFRS 18 for ESEF reporting, necessitating new tagging work.
In response to geopolitical tensions, protectionist trade policies, and evolving sanction regimes, the AMF calls for more detailed information on financial risks. Recommendations focus on liquidity risk, encouraging issuers to detail funding sources, contingency plans, and debt maturity schedules. Transparency on assumptions for fair value of assets and liabilities, and rigorous application of criteria for assets held for sale (IFRS 5) are also stressed.
Given the increasing frequency of restructuring plans, the AMF reminds companies of the importance of communicating on factors considered for estimating closing provisions and the nature of costs included. Similar transparency is expected for loan renegotiations and in lenders' financial statements. The application of the European Single Electronic Format (ESEF) and the tagging of the statement of changes in equity are also addressed.
Regarding sector-specific information, findings from reviews and a study of 75 issuers (CAC 40 and EURO STOXX 50) reveal heterogeneous results, with some information requiring further completion and improvement. The AMF also presents practical case studies and key findings.
