The European Securities and Markets Authority (ESMA) requires issuers in the European Union (EU) to report their annual financial reports from 1 January 2020 in iXBRL via their ESMA ESEF XBRL Reporting Programme.
Only where annual financial reports contain IFRS consolidated financial statements must issuers prepare this information using XBRL.
ESMA prepared a European Single Electronic Format (ESEF) reporting manual to provide guidance on common issues encountered when generating Inline XBRL instance documents. The purpose of this document is to promote a harmonised and consistent approach for the preparation of annual financial reports in the format specified in the RTS on ESEF.
Guidance on the scope of the XBRL tagging required by the ESMA ESEF XBRL Reporting Programme is as follows:
- For the first phase beginning for accounts with a start date of 1 January 2020 or later, the IFRS consolidated primary financial statements (income statement, balance sheet, etc.) must be XBRL tagged in detail,
- For the second phase beginning for accounts with a start date of 1 January 2022, the notes to these financial statements need to be tagged by applying tags for whole sections of the notes (block tagging).
ESMA ESEF XBRL TAXONOMY.
Report Authority contains the ESMA ESEF Taxonomy, which is an extension of the FULL IFRS taxonomy issued by the IFRS Foundation – containing “minimum changes” for ESMA technical additions.
The 2017 version of the taxonomy contains two entry points. One designed to browse the taxonomy, and the other to extend by users of the taxonomy. There are 28 validation rules:
- 10 existence assertions (mandatory tags); and
- 18 value assertions
The XBRL tags must be embedded in an xHTML document using the Inline XBRL (iXBRL) technology which can be opened with standard web browsers and can be prepared and displayed as intended by the issuer.
SIMPLIFY XBRL REPORTING.
Report Authority has been designed by accountants, for accountants and minimises any complexity that XBRL reporting has been known to introduce.
With a focus first and foremost on being a tool that can assist an accountant prepare and automate sets of financial statements, Report Authority can successful integrate XBRL into the accounts production process with minimal fuss.
CONVERT OR CREATE.
If your AFSs have already been produced but you require iXBRL versions of them, you can import entire Microsoft Word documents or content from Microsoft Excel workbooks to be XBRL tagged and converted to iXBRL format. This is useful if;
- you need the previous periods AFSs in iXBRL format prior to the implementation of Report Authority; or
- you do not have control of the creation of the AFSs.
Alternatively, you can utilise the full set of functionality to create, automate, validate and replicate your AFSs from within Report Authority itself.
EFFICIENT AND CONSISTENT REPORTING.
Companies that have to report under the ESMA XBRL Reporting Programme may have to produce many iXBRL submissions for their local regulator – one for each entity in the group. This can be a significant burden on finance teams because;
- manually XBRL tagging each entity is time-consuming, and;
- it is difficult to achieve consistency in content and XBRL tagging across all entities in the group.
Report Authority’s templating functionality alleviates this burden because the content, XBRL tags and data mappings of a segment can be determined by the template – any changes of which will be cascaded automatically and consistently to all entities in the group.
LINKS TO ORACLE EPM AND MORE.
Automate your Annual Financial Statements (AFSs) by linking facts in the report to external data sources such as Oracle HFM, Planning & Essbase, and Microsoft Excel.
Easily calculate facts based on values of others, cross-reference facts and mix presentation scale – without introducing rounding differences.