Inconsistencies Identified and Review Priorities for Financial Statements – Fifth Edition

In order to promote improved quality of financial reporting and taking into account European Union practices, SARAS conducts an annual review of financial statements submitted by entities. During this review, SARAS identifies priorities and approaches to be given special attention. On the basis of these findings, SARAS publishes an annual document on the inconsistencies identified and the review priorities for the coming reporting periods. The document also provides guidance on the preparation of high-quality general purpose financial statements.

The 2024 edition highlights the main inconsistencies identified during the SARAS review of the financial statements for the 2022-2023 reporting periods for compliance with IFRS standards. In particular, the document consolidates the main issues identified during the review of financial statements of Public Interest Entities (PIEs) and certain I and II category enterprises (6% of the total PIEs; 10% of the total number of I category enterprises; 4% of the total number of II category enterprises). The document offers recommendations to help enterprises address these inconsistencies and ensure their financial statements comply with IFRS standards. It also includes data on the frequency of inconsistencies found in the financial statements reviewed in 2024, along with monitoring results on the implementation of the corrective instructions provided by SARAS to the enterprises. Furthermore, the document outlines the priorities and approaches that will be emphasized during the review of financial statements for the 2023–2024 reporting periods. It details the criteria SARAS will use to select and review financial statements submitted and disclosed by entities. The publication takes into account the issues highlighted in the European Common Enforcement Priorities for 2024 Corporate Reporting.

It is important to note that the submission and disclosure of financial statements is an ongoing process. Entities must submit their financial statements for the 2024 reporting period through the reporting portal as soon as they become available, but no later than 9 months after the end of the reporting period.

According to SARAS vision, ensuring timely access to transparent, high-quality, and reliable corporate information in a centralized platform enhances the trust and confidence of investors, creditors, and other stakeholders. This, in turn, supports the development of capital markets and improves access to financing for enterprises.

Timely submission of financial statements plays a crucial role in the development of capital markets and increasing access to financing. By submitting financial reports on time, organizations establish a credible and transparent image, attract potential investors, and strengthen their prospects for reliable partnerships with the banking sector.