ESMA statement on the accounting implications of the COVID-19 economic support and relief measures
25 March 2020
The European Securities and Markets Authority (ESMA) has issued a public statement on
some accounting implications of the economic support and relief measures adopted by
EU Member States in response to the COVID-19 outbreak. The measures include
moratoria on repayment of loans and have an impact on the calculation of expected
credit losses in accordance with IFRS 9.
ESMA has issued the statement in order to promote consistent application of IFRSs in the
EU and avoid divergence in practice on the application of IFRS 9 Financial
Instruments in the specific context of the COVID-19 outbreak, specifically as
regards the calculation of expected credit losses and related disclosure requirements.
In ESMA’s view, the principles-based nature of IFRS 9 includes sufficient flexibility to
faithfully reflect the specific circumstances of the COVID-19 outbreak and the
associated public policy measures.
Please click to access the statement on the ESMA website.
The European Banking Authority (EBA) has also issued a related statement regarding the
prudential framework and accounting implications of COVID-19. The two statements are
consistent as regards financial reporting. The statement can be accessed on the EBA website.