Beyond the GAAP no. 203 – October 2025

Tags Financial audit Newsletter

As we approach year-end 2025, Beyond the GAAP presents our traditional summary of the IASB texts in force at 31 December 2025, as well as an overview of ESMA’s priorities for this year’s closing of accounts. Given the uncertainties arising from the current economic and geopolitical environment, the regulator emphasises the need for transparent communication on significant judgements and estimates, particularly as regards impairment testing of non-financial assets, recoverability of deferred tax assets, revenue recognition, valuation of inventories, restructuring and assessment of credit risk.

Also in this issue, we present ESMA’s priorities for the second year of sustainability reporting applying ESRS Set 1. In an environment characterised by legal wrangling at the European level over the Omnibus I package, and the efforts under way to simplify the Set 1, ESMA has, unusually, reiterated and refined two of its priorities from last year: the materiality assessment, and the scope and structure of the sustainability statement.