Top ESEF Reporting Mistakes: How to Identify and Rectify Them


Businesses are required by the European Single Electronic Format (ESEF) mandate to prepare their annual reports in a machine-readable format to improve openness and comparability. However, mistakes can be made when navigating the complexities of ESEF reporting. Do not be alarmed! Issues with ESEF can fall into three categories: errors, inconsistencies and warnings. Some can prevent your ESEF package from receiving a positive validation, while others are alerts telling you to recheck something.

In this blog, we will explore some common mistakes, contradictions, and alerts you must know!

Common ESEF Reporting Errors and Rectification

While there are advantages to adopting the ESEF digital reporting format, there is a risk of unintentional mistakes when negotiating its complexities. With the help of the guidelines below, you can recognise and fix common ESEF reporting errors.

Inappropriate Sign Use:

Positive or negative values in XBRL are defined by the concept definition rather than by how they affect financial accounts. A common error that could cause misunderstandings is to report the negative cost of sales when it should be positive.

Unreliable Replicas:

Uncertainty caused by varying numbers for Net Cash Flow from Investing Activities is problematic. Inconsistent duplicates are discouraged by ESMA, which highlights the need for precision and consistency.

Inconsistencies in the Calculations:

One must closely examine the rounding errors because they can manifest as inconsistencies in calculations. They must be verified again to ensure innocuous rounding errors, even though they shouldn’t prevent validation.

Hidden Transformable Facts:

There are visual and technical layers in iXBRL files, and only the technical layer’s facts are hidden. The only data that should be buried in the Transformation Rules Registry are those that lack transformation rules.

Redundant Labels:

Extensions that redefine base taxonomy names without changing their meaning are superfluous. This procedure increases the size of the report and reduces the transparency of ESEF reporting.

Inaccurate Dates of Balance:

It’s essential to distinguish between the opening and closing balances for correct reporting. One must follow different norms for instant and duration facts for accurate data representation.

The Package Name is Incorrect:

Problems occur during file downloads because browser-generated extensions may cause inconsistencies. Maintaining coherence within folders requires consistent file naming.

It is imperative to exercise caution, adhere to standards, and conduct extensive review processes in response to these common ESEF reporting errors. This guarantees accurate and compliant financial reporting.

How Can DataTracks Help?

Eligible companies can streamline their reporting process using DataTracks’ dependable and trustworthy ESEF reporting software and ESEF services. DataTracks has made a reputation in the iXBRL taxonomy and ESEF reporting framework by utilising the experience of qualified iXBRL specialists. Therefore, you may be confident that every annual financial report will be precise and authoritative.

Staying on top of the ESMA’s constantly evolving regulations can be difficult. That being said, DataTracks’ experts stay current on all modifications so your business complies with all ESMA requirements.

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