ESMA sets European supervisory priorities for 2024 – what do you need to know?

The European Securities and Markets Authority (ESMA) has announced its European Common Enforcement Priorities (ECEP) for 2024. The publication is crucial in the period when companies are preparing their annual financial reports, setting the direction for compliance with the latest financial reporting and sustainability standards across the European Economic Area (EEA).

Who is affected by the new ESMA guidelines?

The recipient of the European Common Enforcement Priorities (ECEP) for 2024 Corporate Reporting document is primarily issuers admitted to trading on European Economic Area regulated markets. This includes companies responsible for preparing and submitting annual financial reports in compliance with International Financial Reporting Standards (IFRS), European Sustainability Reporting Standards (ESRS) and other related EU regulations.

The document is relevant for:

• management and supervisory bodies responsible for ensuring the quality and internal consistency of annual reports,
• audit committees tasked with overseeing internal controls and compliance processes,
• auditors and assurance providers engaged in verifying the accuracy and integrity of financial and sustainability statements,
• national enforcers and regulators collaborating with ESMA to monitor and enforce compliance with reporting requirements across the EEA.

Key issues in ECEP 2024

The guidance is designed to enhance the overall quality, transparency, and reliability of corporate reporting, benefiting investors, stakeholders and regulators.

It covers three main areas of interest:

• IFRS financial statements – emphasizing the importance of compliance with International Financial Reporting Standards, particularly focusing on liquidity risk disclosures, accounting policies and judgments and revenue recognition practices,
• Sustainability statements – integrating the new European Sustainability Reporting Standards, requiring companies to elevate their ESG disclosures, including: materiality assessments, climate-related disclosures and connection with financial statements,
• ESEF reporting – the European Single Electronic Format (ESEF) continues to be a priority to enhance accessibility and comparability of corporate reporting with a certain stress on ESEF tagging and taxonomy as well as readability and connectivity.

Why are these guidelines so important?

The 2024 ECEP is not just a compliance checklist – it’s a roadmap for better corporate transparency and accountability. ESMA’s priorities reflect a shift toward integrated reporting where financial performance and ESG impacts are interconnected. Companies that proactively align with these standards will not only avoid regulatory pitfalls but also strengthen stakeholder trust in their disclosures.

How we can help?

At DKP, we specialize in advising businesses on compliance with evolving EU regulatory frameworks. Our experts provide tailored guidance on volatile regulatory requirements.

Contact us today to ensure your business is ahead of the curve.