ESMA Publishes Final Draft of Regulatory Technical Standards on ESEF

This draft regulatory technical standards specify for each element of the core taxonomy all the relevant label types included in the IFRS 2021 Taxonomy. In contrast, the current legislative text includes only the so called “standard label” and “documentation label." This is in response to the ESMA feedback, which highlighted that it would be helpful to preparers to include these elements in the core taxonomy, as this would facilitate accessibility of guidance material which is currently only available in the English language. To minimize the burden for preparers, this amendment to the regulatory standards on ESEF is mandatorily applicable for financial years beginning on or after January 01, 2022. Early application is allowed. Therefore, it is expected that for annual financial reports, including financial statements beginning on or after January 01, 2021, issuers will be allowed to use either the 2020 ESEF taxonomy or the 2021 ESEF taxonomy introduced by these draft regulatory technical standards. Early application is especially relevant and encouraged for issuers for whom one or more core taxonomy elements included in the 2021 ESEF taxonomy better reflects the accounting meaning of the disclosure being marked-up compared to the 2020 ESEF taxonomy.

Related Link: Report (PDF)

Keywords: Europe, EU, Banking, Securities, IFR, CRR, CET 1, Regulatory Capital, Class 3 Firms, Investment Firms, ESMA, EBA