ESMA Publishes Taxonomy for Implementation of ESEF Regulation
ESMA published taxonomy files to facilitate implementation of the requirements set out by draft regulatory technical standard on European Single Electronic Format (ESEF). ESMA aims to facilitate implementation of the ESEF technical standard by providing XBRL taxonomy files that are compliant with all relevant technical and legal requirements in the technical standard. With this, ESMA also aims to provide XBRL taxonomy files that issuers should use as a starting point to create their own taxonomies. The taxonomy files intend to facilitate the accessibility, analysis, and comparability of Annual Financial Reports (AFRs) in the ESEF format.
The ESEF technical standard requires that, starting from 2020, all listed issuers publishing AFRs under the meaning of the Transparency Directive prepare their AFRs in the xHTML format. Whenever AFRs contain IFRS consolidated financial statements, issuers shall mark them up using XBRL tags chosen from a taxonomy of accounting concepts and embed them in the underlying xHTML document using the inline XBRL technology. This will combine the XBRL benefits of tagged data with the human-readable presentation of an AFR.
The ESEF taxonomy is based on the 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. The taxonomy comprises a set of electronic files that provide a structured representation of the elements that substantively constitute the core taxonomy. These can be accessed on the website of ESMA in the form of a taxonomy package (in accordance with the XBRL Taxonomy Packages 1.0 specification). The package includes entry points in all EU languages. The human-readable labels of the core ESEF taxonomy, which list and define the elements that preparers can use to identify (tag) the information disclosed within IFRS consolidated financial statements, have been included in Annex VI of the technical standard on ESEF.
Related Links
Keywords: Europe, EU, Banking, Insurance, Securities, Taxonomy, Reporting, ESEF, XBRL, IFRS Taxonomy, 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
Related Articles
PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA Finalizes Standards on Methods of Prudential Consolidation
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA Updates List of Other Systemically Important Institutions in EU
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS Report Concludes Basel Risk Categories Can Capture Climate Risks
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities Welcome FSB Review of their Remuneration Regime
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA Letter on Addressing Risks from Use of Deposit Aggregators
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA to Amend Banking Act and Rules in Coming Months to Transpose CRD5
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC Delegated Regulation on Specialized Lending Exposures Under CRR
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI Proposes to Enhance Assurance Expectations for Basel Returns
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB Issues Results of Benchmarking Analysis of Recovery Plans of Banks
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.
