The Joint Committee of the European Supervisory Authorities (ESAs) has published its second bi-annual ‘Report on Risks and Vulnerabilities in the European Union’s (EU) Financial System’. A lack of confidence in the representation of the underlying economic financial position and financial performance in financial reports fueled by the belief that the existing accounting framework is frequently misapplied and that there are shortcomings and room for interpretation in the accounting framework is cited as one of the risks and vulnerabilities.