ESMA Publishes XBRL Taxonomy and Conformance Suite to Implement ESEF
The ESEF Regulation – What it is and what it aims to do
The European Single Electronic Format, or the ESEF regulation, was introduced to facilitate access, analysis, and comparison of annual financial reports. By allowing greater transparency and bringing the financial reporting process up a notch, the ESEF regulation is aimed at benefiting the investors and other stakeholders of the EU-regulated market.
Furthermore, the ESEF taxonomy laid down by ESMA is based on the IFRS taxonomy. It is prepared and updated annually by the IFRS Foundation and includes labels in 23 official EU languages.
What’s New With the ESEF Taxonomy and the Conformance Suite?
The ESEF Taxonomy
The EU securities market regulator, also known as ESMA, has published the XBRL taxonomy files and the conformance suite test files that reflect the filing requirements in its efforts to facilitate the implementation of the European Single Electronic Format (ESEF) regulation. This publication by ESMA is an update to the ESEF regulation and the 2020 update to the ESEF reporting manual.
By publishing this new taxonomy, the ESMA requires all issuers with securities listed on the EU-regulated market to prepare their year-end financial reports in the XBRL format, marking up the IFRS consolidated financial statements.
The ESEF Conformance Suite
The conformance suite lays down the application of rules and guidance items specified by the ESEF regulation corresponding to the reporting manual. However, the suite does not cover all requirements laid down in the ESEF regulation because some of the requirements cannot be automatically verified with the use of the software. This is why every test case in the conformance suite is now provided with a textual description of the tested aspect and the relevant references to the ESEF regulation.
Challenging to Comply with Changing Filing Requirements?
ESMA strives to streamline the entire financial reporting process. In its efforts to do so, new requirements, compliances, and updates are being introduced. Staying up-to-date with these new filing requirements and compliances can be challenging. To help issuers comply with the new ESEF regulations, DataTracks, a global leader in XBRL solutions, offers robust software that is regularly updated by financial experts with the latest taxonomy changes. To further assist with the compliance with ESMA guidelines, DataTracks also provides a service that tags and finalizes XBRL elements with the correct ESEF taxonomy.
To learn more about DataTracks and the solutions and services they offer, please speak to an expert @ +44-(20)-3608-1300.