Reporting under the microscope: ESMA reveals 2024 enforcement findings
The European Securities and Markets Authority (ESMA) recently released its annual report detailing the enforcement actions of corporate reporting enforcers across the European Union in 2024. The report sheds light on how well issuers complied with financial, non-financial, and digital reporting requirements under the relevant EU frameworks.
ESMA’s analysis found that enforcers examined the financial statements of 685 issuers—17% of all IFRS reporters—leading to 253 enforcement actions. While issues around presentation, financial instruments, and impairment remain persistent, 2024 saw a noticeable uptick in deficiencies in cash flow statements and intangible assets. On the non-financial side, 425 issuers were assessed, with 125 measures taken—nearly half of which related to the EU’s Sustainability Taxonomy Regulation disclosures.
Digital reporting also came under scrutiny. ESMA and national enforcers reviewed 3,103 ESEF filings and flagged 222 issues. Common missteps included failing to publish reports in XHTML and missing filing deadlines. For a format designed to enable digital access and comparison, those aren’t small matters.
This annual check-up shows that financial, non-financial, and digital reporting are closely intertwined and must be approached with the same rigour. High-quality XBRL tagging, consistent application of standards, and timely filing aren’t optional extras. They are the foundation for trustworthy, machine-readable data that supports transparency and informed decision-making.
You can read the full ESMA report here.
