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Frequently asked questions about about financial reporting

Frequently asked questions - Financial reporting

Are the results of the supervision of financial reporting by the AFM open to the public?

Information regarding the supervision of financial reporting is not open to the public until the AFM has started procedures at the Enterprise Chamber of the Amsterdam Court of Appeal. The first goal of the AFM is to reach consensus with a company on the correct application of the financial reporting requirements. At this stage, the AFM will point out the company’s responsibility for the correct application of the financial reporting requirements. It is the company’s responsibility to act accordingly.

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Does the AFM issue rulings or preclearance with regard to financial reporting?

No, the AFM will not issue rulings or pre-clearance. Companies are responsible to comply with applicable laws and regulations.

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What criteria does the AFM use to select companies for its review?

The supervision is based on the fact that companies are held responsible for the quality of their financial reporting. The AFM does not review the financial reporting of all listed companies on a yearly basis, but selects companies from a risk-based perspective.

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Which country’s financial reporting standards are equivalent to IFRS?

The European Commission considers the generally accepted accounting principles (GAAP) of the following countries equivalent to IFRS:

  • United States of America
  • Japan
  • China
  • Canada
  • South Korea
  • India
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Does the AFM’s supervision include supervision of the disclosure of other positions of supervisory board members in the annual financial report?

Based on the Dutch Corporate Governance Code (the Tabaksblat Code) companies must disclose other relevant positions of the supervisory board members in their annual financial reports. The role of the AFM is limited to verifying whether companies apply the Code in their annual reports or give an explanation in case they do not apply the Code. In addition, the AFM verifies whether the content of the annual financial report is consistent with other public information. The AFM does not judge the quality of the governance of companies. If specific transactions (such as acquisitions and important deals) take place information on other relevant positions of the supervisory board members is important for investors.

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