ESMA Updates Taxonomy for Implementation of ESEF Regulation
ESMA published the updated ESEF XBRL taxonomy files to reflect the 2019 update of the European Single Electronic Format (ESEF) Regulation (2019/2100). The update is intended to facilitate implementation of the ESEF Regulation by providing XBRL taxonomy files that are compliant with all relevant technical and legal requirements in the updated ESEF Regulation. The publication of the ESEF XBRL taxonomy files is accompanied by the publication of a set of documentation material presenting their architecture and content.
The ESEF taxonomy is based on the International Financial Reporting Standards (IFRS) taxonomy, which the the IFRS Foundation prepares and updates annually, and provides issuers with a hierarchical structure to be used to classify financial information.. As the IFRS standards evolve, the ESEF Regulation and the corresponding ESEF XBRL taxonomy files evolve accordingly to provide preparers with the most relevant taxonomy for tagging the IFRS) consolidated financial statements. The taxonomy is made up of a set of electronic files (ESEF XBRL taxonomy files) providing a structured representation of the elements that substantively constitute the core taxonomy. The ESEF taxonomy includes minimum changes (extensions or customizations) compared to the IFRS taxonomy prepared by the IFRS Foundation. The human-readable labels of the core taxonomy, listing and defining the specific elements that preparers can use to tag the information disclosed within IFRS consolidated financial statements, have been included in Annex VI of the consolidated version of the ESEF Regulation.
The ESEF taxonomy directly imports full IFRS taxonomy elements and links to their references and labels in the English language (including, among other things, documentation). However, the IFRS taxonomy presentation, definition, and calculation relationships are customized in the ESEF taxonomy, rather than directly imported. To reflect the principle-based nature of IFRS standards, ESMA decided to enable preparers to create extensions in a controlled manner. Therefore, contrary to the fixed taxonomies, the ESEF taxonomy is flexible and it intended to be used as a starting point for issuers to create their own taxonomies. The regulatory technical standards on ESEF require that issuers identify themselves using the Legal Entity Identifier (LEI). Therefore, the XBRL International LEI taxonomy has been also imported in the ESEF taxonomy to provide the means to report and verify the validity of the LEI used by the issuer to identify itself in the Inline XBRL document.
Related Links
Keywords: Europe, EU, Banking, Securities, Insurance, Taxonomy, ESEF, ESEF Regulation, IFRS Taxonomy, XBRL, Regulatory Technical Standards, LEI, ESMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
ECB Paper Examines Data Gaps in European Macro-Prudential DatabaseRelated Articles
EBA Guide to Monitor Threshold for Intermediate Parent Undertakings
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
PRA Finalizes Approach to Supervision of International Banks
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
FCA Issues PS21/9 on Implementation of Investment Firms Regime
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
EBA Proposes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
IOSCO Proposes Recommendations on ESG Ratings and Data Providers
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
ESMA Group Issues Recommendations on RFR Switch in Interdealer Market
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
EC to Defer Application of SFDR Standards Till July 2022
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
EIOPA Consults on Reporting and Disclosures Under Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
