Closing of the 2025 accounts: the AMF flags up points for vigilance and issues recommendations
As every year, the AMF is publishing its recommendations to issuers for applying the IFRS in readiness for the closure of the 2025 accounts. These recommendations are intended to provide a framework for preparing the financial statements and to set out the regulator's expectations in terms of financial information. Aligned with ESMA's priorities for the 2025 financial year, they are based on concrete analyses and case studies from the AMF examination work. These recommendations also include reminders of the new standards and regulations applicable to French companies.
A tense economic and geopolitical context
The first part of the document looks at the new standards and regulations, in particular the future application of IFRS 18 ("Presentation of Financial Statements"). It also takes up the priorities identified by ESMA, which this year reflect the particularly uncertain global environment. Given the ongoing war in Ukraine, persistent tensions in the Middle East and higher tariffs, issuers are encouraged to improve the quality and transparency of their financial information.
The AMF expects issuers to disclose more specific information, in particular about:
- the conduct of their impairment tests,
- the analysis of the recoverability of deferred tax assets,
- the recognition of income from ordinary activities, to ensure that the forecasts used are always justified, and
- for financial institutions, the impact on credit risk.
The AMF is also keeping a close eye on other issues, such as provisions for restructuring, inventories and events after the reporting period, and reiterates that its staff remain at issuers’ disposal to assist them in their consideration of the planned changes to their financial statements.
Segment reporting still under scrutiny
Another priority is segment reporting (IFRS 8), a recurring issue for all European regulators.
The latter have identified a number of shortcomings in the application of this standard, notably in the disclosure of revenue and the breakdown of non-current assets by geographical area and individually significant countries, as well as in the reporting of dependence on major customers.
As last year, the document includes a section devoted to the ESEF tagging rules, with a particular focus this year on the tagging of the statement of cash flows. The AMF also wishes to draw issuers' attention to the forthcoming ESEF 2025 draft regulatory technical standard (RTS), which will include an update to the IFRS taxonomy and the concepts of IFRS 18.
Selection of case studies
The second part contains a selection of case studies from the examination work carried out during the year, as well as a statistical presentation of the main findings.
The aim of this exercise is to illustrate the good practices seen by the AMF in its examination of issuers' financial statements, and to share recommendations and the areas for improvement identified.
