ESMA Publishes XBRL Taxonomy and Conformance Suite to Implement ESEF
ESMA published the 2020 European Single Electronic Format (ESEF) XBRL taxonomy files and an update to the ESEF Conformance Suite to facilitate implementation of the ESEF Regulation. The publication of the ESEF XBRL taxonomy files is accompanied by the publication of a set of documents presenting the architecture and content of the ESEF XBRL taxonomy and providing information about the XBRL features applied. The Conformance Suite describes a set of conformance tests for XBRL processors or software tools to ensure compliance with the requirements of ESEF, as defined in the ESEF Regulation, and with the guidance included in the ESEF Reporting Manual.
The 2020 ESEF taxonomy is based on the 2020 IFRS taxonomy, which is annually prepared and updated by the IFRS Foundation. The taxonomy package includes labels in all EU languages. The ESEF taxonomy includes minimal changes (extensions or customizations) compared to the IFRS taxonomy from the IFRS Foundation. To reflect the principle-based nature of the 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 is intended to be used as a starting point for issuers to create their own taxonomies. The ESEF taxonomy directly imports all FULL IFRS taxonomy elements and links to the references and labels in the English language. However, the IFRS taxonomy presentation, definition, and calculation relationships are customized in the ESEF taxonomy rather than directly imported. The ESEF Regulation requires that issuers identify themselves using the Legal Entity Identifier (LEI). Therefore, the XBRL International LEI taxonomy is 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.
The ESEF Conformance Suite defines 64 test cases divided into 192 sample XBRL report packages showcasing the expected application of rules and guidance items specified by the ESEF Regulation and the corresponding Reporting Manual. For each test case, there is at least one valid and one invalid sample report. This does not represent all possible scenarios in which a particular aspect could be tested. Moreover, the suite does not cover all requirements of the ESEF because some requirements cannot be automatically verified with the use of software. All tests are provided with a textual description of the tested aspect and the relevant references to the ESEF Regulation or Reporting Manual. Each report package that is part of the suite consists of an Inline XBRL document and the corresponding issuer-specific XBRL taxonomy extension.
Related Links
Keywords: Europe, EU, Banking, Insurance, Securities, Taxonomy, ESEF, ESEF Regulation, IFRS Taxonomy, XBRL, XBRL, LEI, Reporting, Conformance Suite, 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.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Previous Article
HKMA Consults on Implementation of Final Basel III Reform PackageRelated Articles
EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
BCBS and EBA Publish Results of Basel III Monitoring Exercise
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
PRA Updates Timeline for Final Basel III Rules, Issues Other Updates
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
US Treasury Sets Out Principles for Net-Zero Financing
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
EC Launches Survey on G7 Principles on Generative AI
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
