NEWS

10/16/2018:

FSA Working Group


"The FSA WG has produced the News release Profitability, Equity Capitalization and Net Worth at Risk (Updated with 2015 data).

Financial Statement Analysis Working Group (WG FSA) conducted a study in 2013 to analyze profitability and equity capitalization in six European countries for manufacturing, construction and trade sector focusing on the economic crisis in the years 2008-2009 and one year later. The group introduced the concept of “Net Worth at Risk” (NWaR) as a kind of stress test evaluate if companies in sector, size and country classification are enough capitalize to afford a period of crisis with possibility of having heavy losses. NWaR is the share of cumulative losses (as a percentage of total assets) that companies may have to face with a certain level of confidence calculated over a given period of time. Two NWaR approaches are used: conditional and unconditional NWaR at three confidence level: 95%, 90% and 80%. The first two represent rather worst-case scenarios and the last displays a rather moderate loss scenario.

This note is the extension of the former study within the time span from 1987 to 2015 with Spanish, Italian and Turkish data. Likewise the former one, this study aims to create a tool for the stress test to evaluate the financial performance of the companies in terms of profitability and equity capitalization.”

Link to the FSA WG publication section

 



6/20/2018:

ERICA Working Group


The ERICA WG has published a new “ERICA series” document, under the title: “Group sizes and geographical activity”. Based on additional information that was collected for approximately 300 non-financial listed groups, this document provides an overview of the size of these groups in terms of the number of subsidiaries and the location of their activities, taking account of their sector classification and country of incorporation of the parent entity. To conclude, we tested whether groups that are active on a more global level, are more profitable.



6/7/2018:

FSA Working Group


"The FSA WG has produced the News release Customer and supplier payments periods and financial distress; This note presents the results gathered by six of the FSA-WG participating countries that could collect data related to the failure of corporations: Belgium, France, Italy, Portugal, Spain and Turkey, in an ad hoc analysis by using individual data, testing the differences between failing and non-failing corporations days sales outstanding (DSO) and days payables outstanding (DPO), which had the purpose of answering the question if the customer and supplier payment periods were related with corporations’ financial distress.”

Link to the FSA WG publication section



5/9/2018:

FSA Working Group


"The FSA WG has produced this News release that presents the most recent trends in the collection and payment periods on trade credits of European non-financial corporations (Belgium, Germany, Spain, France, Croatia, Italy, Poland, Portugal and Turkey). This note contains an update of the previous report and covers the period 2007-2016.”

Link to the FSA WG publication section

 



5/9/2018:

FSA Working Group


"The FSA WG has updated its user friendly excel tool that helps to explore and navigate through its trade credit data base of non-financial corporations. The database contains indicators of days sales outstanding (DSO) and days payable outstanding (DPO), used as proxies for customer and supplier payment periods.”

Link to the FSA WG publication section

 



3/30/2018:

ERICA Working Group


The ERICA WG has published a new “ERICA series” document, under the title: “The value relevance of consolidated financial information”. The value relevance measures the extent to which financial information can explain investors’ decisions, which are reflected in the groups’ market value. The study examines the value relevance of IFRS financial information for each year from 2012 until 2016, per country, throughout sectors and also within group size categories. The approach applied follows the idea that the joint explanatory power of book value and net income gauges the extent to which financial information is relevant to investors.



2/5/2018:

ERICA Working Group


ERICA WG has published its document: "European non-financial listed groups: Analysis of 2016 data" together with its annex "European non-financial listed groups: Analysis of 2016 data - Annexes"

The study presents some highlights of European non-financial listed groups, on profitability and financial structure in 2016, as well as on financial debt structure and cost of debt. ERICA (European Records of IFRS Consolidated Accounts), is a database, for internal use within the members of ECCBSO, composed of a dataset of around 1,000 European non-financial groups, fully representative of the stock markets of the countries participating in the project (Austria, Belgium, France, Italy, Germany, Greece, Portugal and Spain). The data are obtained from publicly available financial statements, having been treated manually, by CBSO statistics and accounting specialists, to be fitted on a standard European format (ERICA format); this manual treatment means, in some cases, the interpretation of the original data, a constraint that readers of this document should bear in mind.

 



2/5/2018:

ERICA Working Group


ERICA WG has published its document: "ERICA Statistics 2016"

This document provides statistical information based on the data available in the ERICA database. These statistics have been compiled, using the ERICA 2016 database, covering more than 1000 European listed groups over the 2005-2016 period. For a selection of nearly 50 variables, averages, total aggregates, quartiles, minimum and maximum values are published, by year, by sector of activity, by country and/or by size class.

 



1/10/2018:

BACH Working Group


“Outlook #5 “Assessment of the transposition into national law of the new European Accounting Guideline 2013/34/EU”

The Outlook #5 available free of charge at the BACH website, entitled "Assessment of the transposition into national law of the new European Accounting Guideline 2013/34/EU” analyses the impact of the European Union (EU) Directive and transposition into national law in the participating countries of the BACH2-database, assessing their potential impacts. Finally, it also presents an appreciation on the degree to which the goals of the Directive have been met".

 



11/2/2017:

IFC/ECCBSO/CBRT Conference on “Uses of Central Balance Sheet Data Offices’ information”


We are pleased to inform you that the proceedings of the IFC-ECCBSO-CBRT Conference on “Uses of Central Balance Sheet Data Offices’ information”, co-organised by the IFC, the European Committee of Central Balance Sheet Data Offices (ECCBSO) and the Central Bank of the Republic of Turkey (CBRT) in Özdere‐İzmir, Turkey, on 26 September 2016 were published in the IFC Bulletin No 45 (http://www.bis.org/ifc/publ/ifcb45.htm) on the IFC Website.

 



10/26/2017:

ERICA Working Group


The ERICA WG has published a new “ERICA series” document, under the title: “Different alternatives that IFRS users can adopt: Analysis of the choices taken in Europe”. This note focuses on analysing the use of IFRS alternatives in ERICA+ groups (a sub-set from the ERICA database of around 250 groups with extra accounting details), showing general results by country, sector and size. The IFRS alternatives covered are presentation of the income statement either by nature or by function of expenses, presentation of the cash flow statement by means of the direct or indirect method, presentation of other comprehensive income gross or net of taxes, subsequent measurement of property, plant and equipment at cost or revalued amount, and subsequent measurement of investment property at cost or fair value.



10/18/2017:

FSA Working Group


The FSA WG has produced this News release that presents the most recent trends in the collection and payment periods on trade credits of European non-financial corporations (Belgium, Germany, France, Italy, Poland, Portugal, Spain and Turkey). This note contains an update of the previous report and covers the period 2014-2015.

Link to the FSA WG publication section

 



10/9/2017:

ERICA Working Group


The ERICA WG has published a new “ERICA series” document, under the title: “FLEXIBILITY IN CLASSIFICATION OPTIONS WITHIN THE STATEMENT OF CASH FLOW”. This study examines the impact of the flexibility in classification options within the statement of cash flow. The option in the cash flow statement, according to IFRS, on how to classify interest and dividends paid and received hampers comparability between groups. The amount of operational cash flow reported by a group may differ according to whether the interest paid by the group is considered as an operating cash outflow or as a financial cash outflow. The classification choice can also have an impact on the group's credit risk assessment.



10/9/2017:

ERICA Working Group


The ERICA WG has published a new “ERICA series” document, under the title: “REVENUE VARIATION DISCLOSURE - PERIOD 2014-2015”. This note conducts an in-depth analysis of the turnover growth of European non-financial listed groups in order to ascertain their intrinsic dynamism. The turnover growth of the main European non-financial listed groups is analysed in terms of its various components: exchange rate effects, changes in the scope of consolidation and organic growth.



5/19/2017:

FSA Working Group


The FSA WG has produced a user friendly excel tool that helps to explore and navigate through its trade credit data base of non-financial corporations. The database contains indicators of days sales outstanding (DSO) and days payable outstanding (DPO), used as proxies for customer and supplier payment periods.

FSA WG publications



4/12/2017:

FSA Working Group


The Financial Statements Analysis Working Group (FSA WG) has published a set of documents, under the title: "The Use of Accounting Information to Estimate Indicators of Customer and Supplier Payment Periods" (PowerPoint).

These documents intend to highlight the main results emerging from the studies conducted by the FSA WG over the last few years. The most recent studies of the group relate to trade credits of European non-financial corporations. These studies use accounting information drawn from financial statements in order to prepare indicators of days sales outstanding (DSO) and days payable outstanding (DPO), used as proxies for customer and supplier payment periods, respectively. Results are presented for the eight countries participating in the working group: Belgium, Germany, France, Italy, Poland, Portugal, Spain and Turkey.

 



2/6/2017:

ERICA Working Group


ERICA WG has published its document: "European non-financial listed groups: analysis of 2015 data" together with its annex "European non-financial listed groups: analysis of 2015 data - Annexes".

The study presents some highlights of European non-financial listed groups, on profitability and financial structure in 2015. ERICA (European Records of IFRS Consolidated Accounts), is a database, for internal use within the members of ECCBSO, composed of a dataset of around 1,000 European non-financial groups, fully representative of the stock markets of the countries participating in the project (Austria, Belgium, France, Italy, Germany, Greece, Portugal and Spain). The data are obtained from publicly available financial statements, having been treated manually, by CBSO statistics and accounting specialists, to be fitted on a standard European format (ERICA format); this manual treatment means, in some cases, the interpretation of the original data, a constraint that readers of this document should bear in mind.

 



12/16/2016:

ERICA Working Group


The ERICA WG has published a new “ERICA series” document, under the title: “Recalculated data in European non-financial listed groups and the impact of the new IFRS 10-11-12 standards”. This short note takes a closer look at how frequently groups restate their data, in which countries, branches of activity and size class the restatements are more common, what caused the recalculations, and finally what impact ‘important reasons for restatement’ have on the statement of financial position and on the profit and loss statement. 

 



11/17/2016:

BACH Working Group


Outlook #4 “European non‐financial corporations from 2007 to 2014”

The Outlook #4 available free of charge at the BACH website, entitled “European non‐financial corporations from 2007 to 2014” uses BACH data to analyse recent developments in ten European economies: Austria, Belgium, Czech Republic, France, Germany, Italy, Netherlands, Poland, Portugal and Spain. This Outlook focuses on the 2008‐2009 financial crisis’ immediate impact over non‐financial corporations’ profitability and funding structure, as well as on the evolution in the subsequent periods, distinguishing short‐term from long‐term effects. A breakdown by sector, size and the distribution quartiles for some ratios are provided in order to better illustrate the diversity of situations among each country.



10/17/2016:

IFC/ECCBSO/CBRT Conference on “Uses of Central Balance Sheet Data Offices’ information”
 


The IFC/ECCBSO/CBRT Conference on the “Uses of Central Balance Sheet Data Offices’ information” (Ízmir, September 26th, 2016) – Programme) aimed at improving the communication and cooperation between producers and users of the information collected by CBSOs. The event brought together statistics’ producers at official institutions with researchers and academics providing a privileged platform to promote the sharing of experiences from a variety of stakeholders.



9/12/2016:

ERICA Working Group


The ERICA WG has published a new "ERICA series" document, under the title: "Dividend distribution in European non-financial listed groups". This short note offers an example of the usefulness of consolidated accounts data (under IFRS standards), enabling more accurate results in dividend analysis as consolidated data avoids the double counting of intra-group dividends which occurs with individual data. Using the information reported by the main listed non-financial European groups in their financial statements, it can be highlighted the stability of the dividends policy during the period 2012 - 2014. On average, 70% of European listed groups distributed dividends to shareholders. The percentage increased to 90% for the larger groups and decreased to 50% for the smaller ones. Analyzing the behavior by sector, the energy groups are more inclined to distribution, while construction and services were more careful. The behavior by sector of activity and size were confirmed analyzing all the indicators: payout ratio, return for shareholders, dividend yield and profitability. Probit analysis indicates that lagged dividends distributed to owners and lagged profit to total assets ratio are high predictors of dividend distribution decisions.



7/14/2016:

ERICA Working Group


The ERICA WG has published a new “ERICA series” document, under the title: “Analysis of Cash-Flow in European listed groups (ERICA database): a snapshot of the 2005-2014 period”. This short note offers an example of the usefulness of consolidated accounts data (under IFRS standards) for economic and financial analysis. Using the information reported by the main listed non financial European groups in their Cash-Flow statements, it can be highlighted the drop in investing activities, intensification of the deleverage process, keeping altogether a good operating performance as a result of its worldwide geographical diversification, afforded by European multinationals over the period 2005 to 2014.



6/20/2016:

BACH Working Group


Outlook #3 “Developments in the leveraging process of European companies: Some effects on the asset side”

The Outlook #3 available free of charge at the BACH website , entitled “Developments in the leveraging process of European companies:  Some effects on the asset side” uses BACH data to compare recent trends in non-financial corporation performance in the following nine European economies: Austria, Belgium, Czech Republic, France, Germany, Italy, Poland, Portugal and Spain. In particular, indicators on the financial structure of non-financial corporations, their debt and financial services as well as the structure of the asset side are presented. The analysis includes an assessment of the recent situation in the countries under study and analyses the effects of the economic and financial crisis as well as the evolution of non-financial corporation financing between 2008 and 2013. The main attention is dedicated to the analysis of deleveraging effect during the financial crisis. Particular attention is given to the role of firm size and industry affiliation and to measures of dispersion.

 

 



6/19/2016:

BACH Working Group


ECB Statistics Paper Series (SPS): The bank for the accounts of companies harmonized (BACH) database

Available free of charge at https://www.ecb.europa.eu/pub/pdf/scpsps/ecbsp11.en.pdf

The Bank for the Accounts of Companies Harmonized (BACH) is a free-of-charge database containing the aggregated accounting data of non-financial incorporated enterprises for, so far, 11 European countries. While the individual accounts feeding the database were originally prepared in line with national accounting standards consistent with European Accounting Directives, they have been harmonised with a view to preserving, to the greatest extent possible, the cross-country comparability of the resulting data. This article presents the methodology underpinning BACH, including the content of the database. It describes the characteristics of national samples and outlines the harmonisation process. BACH is a unique tool for analysing and comparing the financial structure and performance of firms across European countries. A simple case study is also presented in support.

 



2/16/2015:

ERICA Working Group


The ERICA WG has published the first document of the "ERICA series": ERICA series 2013 - 1. Restated data

The "ERICA series", complement the annual report prepared on the ERICA database, with additional pieces of information and/or analysis on specific issues, using the full database ERICA, or its subset ERICA +. Due to its interest and/or the speciality of the themes treated, these short notes are diffused apart from the annual report.



2/12/2015:

ERICA Working Group


ERICA WG has published its document: "European non-financial listed groups: analysis of 2013 data" together with its annex "European non-financial listed groups: analysis of 2013 data - Annexes"

The study presents some highlights of European non financial listed groups, on profitability, financial structure and impact of fair value accounting on the consolidated accounts of the European groups included in ERICA database. ERICA (European Records of IFRS Consolidated Accounts), is a database, for internal use within the members of ECCBSO, composed of two datasets of around 1,000 European non-financial groups, fully representative of the stock markets of the countries participating in the project (Austria, Belgium, France, Italy, Germany, Greece, Portugal and Spain). The data are obtained from publicly available financial statements, having been treated manually, by CBSO statistics and accounting specialists, to be fitted on a standard European format (ERICA format); this manual treatment means, in some cases, the interpretation of the original data, a constraint that readers of this document should bear in mind.