Financial reporting

Pursuant to the Securities Trading Act, section 19-1, subsection (2), Finanstilsynet supervises the periodic financial reporting of issuers of listed transferable securities. This includes ensuring that the periodic financial reports are published by the relevant deadline.

Supervision is carried out of issuers with Norway as their home state regardless of the accounting language used by the issuer.

Home state in the EEA

Finanstilsynet oversees the periodic reporting of issuers of transferable securities with Norway as their home stat that have been admitted, r for which admission to listing has been requested on a regulated market in the EEA. Issuers with Norway as their home state are specified in the Securities Trading Act, section 5-4. See Oslo Børs' website about listed companies' home state.

Equivalence

For issuers from non-EEA states having Norway as their home state, Finanstilsynet may consider whether the requirements concerning the content of the management report, declaration of responsibility and the statutory accounts of the parent company pursuant to the law of the third country meet the requirements of Section 5-7 of the Securities Trading Regulations.

Selection

A three-pronged model has been established whereby some companies are selected for review as a result of risk assessments, rotation and/or signals.

Review of financial reporting

Finanstilsynet checks that the content of the financial reporting is in accordance with laws and regulations. Finanstilsynet's review focuses on identifying significant reporting inconsistencies. Initially, the company’s financial reporting is reviewed, along with other publicly available information, such as stock exchange statements. If Finanstilsynet finds it necessary, it will send the company a letter with questions concerning one or more aspects of the company’s financial reporting. Finanstilsynet normally sets a three-week deadline for response.

Finanstilsynet will often arrange a meeting with the company during the review process. The company's auditor normally attends such meetings.

If Finanstilsynet disagrees with the company's accounting treatment of one or more items, it may decide that this must be rectified or that further information must be provided. Finanstilsynet may also decide that the company must present its annual or interim accounts again. Before a decision is made, Finanstilsynet will always notify the company of the decision, presenting the facts and Finanstilsynet's assessment. The company will have the opportunity to respond.

The review process is concluded with a final letter summarising the review. Any decision made will be presented in the final letter. The letter will be made available on Finanstilsynet's website and be published on Oslo Børs NewsWeb.

• Oslo Børs NewsWeb

Companies may appeal against Finanstilsynet's decision. The deadline for appeal is three weeks after the company was informed about the decision. The appeal must be sent to Finanstilsynet and will be considered by the Ministry of Finance or an appeals board appointed by the Ministry of Finance.  

Thematic inspections and reports

Finanstilsynet conducts an annual review of listed companies’' financial reporting and also periodically conducts broader-based inspections and reviews of certain topics and conditions.

Finanstilsynet has conducted a survey of listed companies' sustainability reporting. Sustainability and climate risk have been subject to increasing attention in recent years. Finanstilsynet's survey shows major shortcomings in current reporting practices.

• Report: Survey of listed companies’ sustainability reporting (pdf)
• Attachment: Questionnaire with guidance (pdf) (in Norwegian only)
• Attachment: Population overview (pdf) (in Norwegian only)
• Attachment: Industry division (pdf) (in Norwegian only)

Cooperation with the EU

The EU/EEA countries cooperate on supervision of listed companies’ financial reporting

European Securities and Markets Authority (ESMA)

ESMA is an independent EU authority whose members represent the European supervisory authorities. Finanstilsynet attaches importance to taking enforcement action in accordance with the principles drawn up by ESMA, but is not bound by these. 

• Guidelines on Enforcement of Financial Information

Other relevant information from ESMA

• IFRS Supervisory Convergence
• ESMA Library
• Report on the use of Alternative Performance Measures and on the compliance with ESMA's APM Guidelines

European Enforcers Coordination Sessions

The EECS are a forum for European supervisory authorities. The EECS were established to discuss decisions made by the national supervisory authorities and their experience with the use of standards in supervisory activities. Extracts from enforcement decisions taken by EU accounting enforcers can be found under the link to the ESMA Library above.

ESMA has published common European priorities for the 2019 annual financial report: 

• European common enforcement priorities for 2019 annual financial reports