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
ESAs Issue Multiple Regulatory Updates for Financial Sector Entities
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
EBA Finalizes Methodology for Stress Tests, Issues Other Updates
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
OSFI Sets Out Work Priorities and Reporting Updates for Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
APRA Finalizes Changes to Capital Framework, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)
