During the publication of the latest ESMA recommendations this summer, the question “how to choose the most suitable tag” was raised and clarifications were provided.
Choosing a concept to tag a sentence such as “Our fuel consumption has been reduced this year” can be ambiguous: a precise tag would be of the “ExpenseOfFuel” type, and a wider tag would be of the “ExpenseByNature” type or even wider “ExpensesAndTaxes”.
These three options can be quite suitable, depending on the level of precision desired. However, if everyone can freely choose their level of granularity, it becomes difficult to compare data on their concept alone.
It was therefore necessary to choose a unified methodology, in order to standardize the information between different issuers.
The chosen methodology, therefore, consists in tagging the content with all the concepts related to the meaning of the content, from the most precise (“narrow”) to the largest (“wide”). That is to say, using several tags for the same content.
Example: <ExpensesAndTaxes><ExpenseByNature><ExpenseOfFuel>Our fuel consumption has been reduced this year.</ExpenseOfFuel></ExpenseByNature></ExpensesAndTaxes>
The hierarchy of concepts (i.e. the wider or narrower relationship between two concepts of the same nature, and this, for all the concepts of the taxonomy) is being discussed, and will be defined for the next season. In the meantime, the expected work is enormous.
Fortunately, for Pomdoc Pro users, this recommendation will have no impact, because the “NestedTagging” is generated automatically in the ESEF export!