Zebra is proud to be participating in the 24th XBRL Europe Day. A very informative and very needed event where regulators, service providers and other market participants shared their views on the present and future of the ESEF and Digital reporting as a whole.
Our key takeaways:
- ESEF has happened. The new requirement came into force on the 1st January 2020, though still a few grey areas remain.
- Validation of the ESEF reports. ESMA confirms that validation and compliance with the ESEF taxonomy and the rules remains the issuer’s responsibility. ESMA does not plan to create its own validator.
- Audit. Heated discussions around the future role of auditors in the ESEF reporting. Currently audit of iXBRL files are not required, but this to be changed in the future.
- Consequences for not complying. Currently ESMA is discussing enforcement measures with NCAs. Fines and sanctions are considered.
- ESG. FRC Lab has brought forward the very interesting and important subject of ESG digital reporting becoming the next step in providing concise and comparable data related to ESG.
- ESEF and SEC. The issue of comparability of the ESEF and SEC requirements for FPIs was actively discussed. The taxonomies are alike but not identical.
- Common infrastructure. There is still no infrastructure for receiving, processing, storing, and distributing ESEF reports amongst all EU member states. The plan is currently being discussed at the ESMA level.
- Local variations. Local OAMs and NCAs in each EU country will have their own way of receiving and processing data, their technical checks vary.
- Annual updates. ESMA confirms that it will be updating ESEF taxonomy on a yearly basis.
- ESMA strongly encourages EU (and UK) issuers to look for a suitable solution in 2020 and get fully prepared for reporting in ESEF in 2021.