The European Securities and Markets Authority has published a statement to ensure the consistent application by issuers of International Financial Reporting Standards within the European Union. In particular, it addresses the requirement for consistent application of IFRS 9 related to the classification of financial assets and liabilities. ESMA considers a range of accounting implications that may arise for Issuers as a result of national governments' and EU bodies' responses to the COVID-19 pandemic. These include:

• accounting for the modifications resulting from the introduction of support measures;
• assessment of significant increase in credit risk;
• Expected Credit Loss estimation;
• public guarantees on issuers' exposures; and
• transparency.

View the ESMA public statement on IFRS 9.

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