1. What is the ESEF reporting?
The ESEF reporting - European Single Electronic Format - is the electronic format in which all financial data will have to be published starting January 1st 2021.
On October 22nd 2013, the Official Journal of the European Union published the Transparency Directive 2013/50/UE of the European Parliament and Council. Its goal is to harmonize the flow of information from the issuers to their investors and competent authorities. It also aims to facilitate the acces, analysis and comparability of Annual Financial Reports in full disclosure.
2. Who does the ESEF concern?
All European companies quoted on a regulatory market will be obligated to publish this reporting starting January 2021. In France, quoted companies are defined by the article "L.211-1 du Code Monétaire et Financier".
Whether your accounts go by the IFRS standards or not, your AFR will have to evolve to the ESEF format. It doesn't only concern listed on the CAC40 or SBF120.
3. In what format should my reporting be? What are the Regulatory Technical Standards?
The ESMA established Regulatory Technical Standards called RTS, which specify the rules of establishment of this new format.
Every issuer must produce an Annual Financial Report composed of an XHTML file. If this issuer publishes consolidated accounts by IFRS standards, he must also tag the data by using the XBRL (iXBRIL) technology. The full report will then be composed of several files with various extensions (.xml, .xsd, .xhtml, .xbrl, .png...)
4. When are the first reportings due?
According to the Transparency Directive 2013/50/UE, publishing Annual Financial Reports in the ESEF format will be mandatory starting January 1st 2020.
The AMF (French authority on financial markets) specifies that these files cannot be deposited before the 1st of January 2021. Since the year Y-1 must appear in all financial statements, the file will contain the presentation of the 2019 and 2020 accounts.
5. Can my regulatory document be aesthetic?
Yes it can, by using our unique software.
Other solutions do not cover the regulatory aspect and produce files with a raw look. Therefore, some were afraid that the document would have less graphic qualities than the previous PDFs. Let's not forget that these document are mostly designed for your investors.
Pomdoc Pro makes it possible to make a nice, seducing document, coherent with your visual identity all the while integrating technical information (XBRL meta data) set by the Transparency Directive 2013/50/UE.
6. To whom is this reporting addressed? What is its goal?
With the old format (PDF), financial reports were mostly destined to human readers who came looking for specific information.
From now on, the digital world, FinTechs, LegTechs and AI will help you gain visibility by broadcasting your content to a large public.
It is, therefore, important to capitalize on aesthetics as well as the quality of your data.
7. How may I create my document easily?
Today, Pomdoc Pro is the only software on the market which helps you create a financial document easily, in compliance with the regulation and with the high quality of a marketing document.
With our software, your reporting is formatted according to predetermined graphic standards harmonized with all your companie's documents.
This means that the editing and formatting of the document are simplified by the means of a designed interface inside the Pomdoc Pro integrated editor. Spreadsheets are appended to your annual report directly from the ESEF taxonomy library. As a result, your consolidated accounts data will integrate automatically in your document. As for your data that is not referenced in the IFRS taxonomy, you may attach them simply as an extension to your ESEF reporting.
With Pomdoc Pro, you can then export your files in XHTML and iXBRL as well as PDF.
8. Can I tag my values directly from my document?
Yes and no.
Theoretically, it is possible to tag values directly in the document, but it is a tedious operation with a large margin of error.
That is why we recommend a subtler and simpler procedure:
- manual tagging is required for the Notes to the Financial Statement and general information (Bolt-on method)
- for digital data, directly using consolidated accounts data is mandatory (Built-in method)
With this method, the values you pass on to the regulator will not be rounded off and there will be no incoherences during technical controls established to validate your data.
Your readers will, of course, still be able to view K€ and M€ values for a better understanding of your document.
9. What should I do if my data is different from the IFRS taxnomy?
In this case, you have to create an extension to the taxonomy and attach it to the IFRS taxonomy by decomposing concepts (Disaggregation) or by combining concepts (Combination). This is what we call the anchoring principle.
For all the data that is not referenced inside the IFRS taxonomy, the operation needs to:
- state a new concept called "extension"
- link the extension inside the ESEF resporting's structure
Pomdoc Pro makes managing these extensions easy: all the processings are automated in one single "add a line" action in the spreadsheet.
In case the standard evolves, you will be able to either use the new IFRS concept or continue using your own extensions. However, for documents to be easily comparable from one issuer to another, we recommend using the IFRS taxonomy concepts rather than an extension.
10. How can I prepare for this new format?
In order for you to be best prepared for this ESEF format:
For you to be prepared for your first ESEF reporting, we plan on organizing informative breakfasts. Leave us your information to get an invitation!