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There are two aspects to the ESEF reporting requirement:

XHTML (Extensible Hypertext Markup Language)

iXBRL tagging (Inline eXtensible Business Reporting Language)

XHTML is a hybrid of HTML and XML and is a web based language; easily viewable on any internet browser.  It encapsulates the visual rendering of documents as well as providing a standard protocol to add tagging information if required.

iXBRL is the common reporting standard used to electronically tag accounts according to the rules stipulated by the relevant authority, in this case ESMA (the European Securities and Markets Authority) as applied by the FCA (Financial Conduct authority) in the UK.  This tagging information is embedded within the XHTML file.

Therefore all companies must report in XHTML but not all companies need to apply iXBRL tagging to their accounts.

What type of financial accounts need to include iXBRL tagging?

All consolidated financial reports prepared in accordance with International Financial Reporting Standards (IFRS). The resultant ESEF file will be in XHTML format and include iXBRL tags embedded within the XHTML.

In 2022 (for accounting periods beginning on or after 1 January 2021), only the primary financial statements need to be marked up with iXBRL tags utilising the ESEF taxonomy.

From 2023 (for accounting periods beginning on or after 1 January 2022), block tagging of the notes to the consolidated financial statements becomes mandatory.

What type of financial accounts need only to be in XHTML without any tagging?

Non-consolidated financial reports (in IFRS or in national GAAP) are not subject to the obligation to tag their financial statements.

Investment entities that fall under the consolidation exception as per IFRS 10 Consolidated Financial Statements and that only prepare individual IFRS financial statements are therefore also not required to tag their IFRS financial statements.

Sections 4.1.1 and 4.1.2 of the ESEF manual (esma32-60-254_esef_reporting_manual.pdf (europa.eu)) are applicable.

To find out more about ESEF or iXBRL contact Andrew Stewart:

info@1stopxbrl.com
+44 (0) 20 77577470

About

Located in the heart of London’s financial centre, 1STOPXBRL is a quality focussed firm that specialises in providing global financial compliance solutions. Clients are offered tailor made services, backed with ISO 9001 and ISO 14001 Certification, as well as HMRC Accreditation for Accounts & Tax Computation iXBRL services. The group boasts a wide portfolio of international clients, including both large and small companies.

The post iXBRL or XHTML: An ESEF Technical Briefing appeared first on 1stopXBRL Limited.

Within the UK, the London Stock Exchange’s Main Market falls within scope but not the Alternative Investment Market (AIM).

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An issuer must make public its annual financial report at the latest four months after the end of each financial year. In the UK this applies to account periods beginning from January 2021. Originally it was set to be implemented for accounting periods beginning January 2020, but because of covid, it was delayed by 12 months. Companies can elect to make a voluntary submission for their 2020 accounts. Although this is not necessary, it is good practice to ensure you understand the new filing regulations when they are mandatory.

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The post When do I need to file ESEF? appeared first on 1stopXBRL Limited.

In the profit and loss section we can see the line item “Development management losses”. By searching the ESEF taxonomy we know there isn’t a prescribed tag matching this. With this in mind, we need to create an extension. To do this we copy and paste the name of the line item to create the new tag name and apply the basic properties of instant /duration, in this case duration as it is a profit and loss item, and as a debit as it is an expense item. The next step is to anchor it to the relevant wider tag of, ” Operating Expense”. By doing this, we have successfully created the extension and this extension can now be used as a normal tag.

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iXBRL or inline xbrl is simply a common technical specification which is used by many authorities  including HMRC and the Irish revenue but it is also used in Denmark, Singapore and South Africa.  The difference between all these jurisdictions lies in the rules and standards they specifically mandate.  ESEF also uses iXBRL, but the rules and provisions are specified by ESMA, the European Securities and Markets Authority .

Each regulatory authority specify their own taxonomy – a dictionary of terms which are tagged against relevant items in financial accounts.  ESEF work on the IFRS accounting standard taxonomy and is filed by the client, in the UK for example, through the FCA Electronic Submission System.   HMRC and the Irish Revenue have their own portals or gateways.

There is one specific area to highlight, in which the ESEF mandate has matured the tagging process and this is to do with extending the taxonomy.  With normal iXBRl, if there is a line item which doesn’t have a tag associated with it, we simply skip that item and do nothing with it.  With ESEF, we have to create a new tag to reflect that particular item in the accounts.

For example.  In the profit and loss section we can see the line item “Development management losses”. By searching the ESEF taxonomy we know there isn’t a prescribed tag matching this.  With this in mind, we need to create an extension.  To do this we copy and paste the name of the line item to create the new tag name and apply the basic properties of instant /duration, in this case duration as it is a profit and loss item, and as a debit as it is an expense item. The next step is to anchor it to the relevant wider tag of, ” Operating Expense”. By doing this, we have successfully created the extension and this extension can now be used as a normal tag.

The post What is the difference between ESEF and iXBRL? appeared first on 1stopXBRL Limited.

Do auditors need to sign off on the tagging of ESEF iXBRL?

There was an audit requirement under what’s called “the Audit Directive in EU law” for ESEF to have an audit report which would have an opinion on whether the accounts have been prepared in accordance with the statutory requirements. The European Commission’s view that ESEF compliance should be considered a statutory requirement.

However, in December 2020 the UK government announced its decision not to introduce this mandatory auditor requirement.

So in the UK , there is no requirement for auditors to audit the ESEF tagging. 

A company may choose to do this voluntarily, but there is no requirement for them to do so.

For a limited time, 1StopXBRL are offering a FREE service to convert voluntary 2020 accounts. LEARN MORE>>

For over 25 years 1STOPXBRL’s CEO has been providing financial compliance solutions to clients across the globe. From international corporations to independent financial and legal firms, service is steeped in quality, professionalism and an in-depth understanding of financial matters.

To find out more about 1STOPXBRL and how the group is helping businesses get ESEF ready, contact:

info@1stopxbrl.com
+44 (0) 20 77577470

About

Located in the heart of London’s financial centre, 1STOPXBRL is a quality focussed firm that specialises in providing global financial compliance solutions. Clients are offered tailor made services, backed with ISO 9001 and ISO 14001 Certification, as well as HMRC Accreditation for Accounts & Tax Computation iXBRL services. The group boasts a wide portfolio of international clients, including both large and small companies.

The post Do auditors need to sign off on the tagging of ESEF iXBRL? appeared first on 1stopXBRL Limited.

What is ESEF?

ESEF stands for the European Single Electronic Format.  It is a common reporting standard for all EU countries and the UK.  In the EU, it is regulated by The European Securities and Markets Authority (ESMA), and in the UK, by the FCA.

Who does it apply to?

Within the UK, the London Stock Exchange’s Main Market falls within scope but not the Alternative Investment Market (AIM).

When do I need to file it?

An issuer must make public its annual financial report at the latest four months after the end of each financial year.  In the UK this applies to account periods beginning from January 2021.  Originally it was set to be implemented for accounting periods beginning January 2020, but because of covid, it was delayed by 12 months.  Companies could elect to make a voluntary submission for their 2020 accounts but this is not mandatory. Companies can elect to make a voluntary submission for their 2020 accounts. Although this is not necessary, it is good practice to ensure you understand the new filing regulations when they are mandatory.

For over 25 years 1STOPXBRL’s CEO has been providing financial compliance solutions to clients across the globe. From international corporations to independent financial and legal firms, service is steeped in quality, professionalism and an in-depth understanding of financial matters.

To find out more about 1STOPXBRL and how the group is helping businesses get ESEF ready, contact:

info@1stopxbrl.com
+44 (0) 20 77577470

About

Located in the heart of London’s financial centre, 1STOPXBRL is a quality focussed firm that specialises in providing global financial compliance solutions. Clients are offered tailor made services, backed with ISO 9001 and ISO 14001 Certification, as well as HMRC Accreditation for Accounts & Tax Computation iXBRL services. The group boasts a wide portfolio of international clients, including both large and small companies.

The post What is ESEF? appeared first on 1stopXBRL Limited.

Staying  iXBRL compliant

Over the past few years the world has started to transition localised accounting standards (such as UK GAAP) to a more harmonised international system. Based on the International Financial Reporting (IFRS) principles, the new set of FRS 101 and FRS 102 accounting standards exist to help the FRC augment consistency with the international model.

One of the major changes on the way is a significant increase in iXBRL tagging. While in the past classifying information was minimal, tagging of accounts detailed data is now far more comprehensive. “All business data items in a report must be tagged with an appropriate XBRL tag if a suitable tag exists in the relevant taxonomy,” states the FRC. With tags set to increase from 1500 up to 7000, 1STOPXBRL offers its clients ultra-productive taxonomies categorisation across iXBRL accounts.

“The new standards are set to make converting to iXBRL far more complex and detailed. More than just a ‘technical exercise,’ accurate iXBRL conversion will now require an increased depth of knowledge in accounting,” says Andrew Stewart, CEO & Founder of 1STOPXBRL.

For British businesses, the new standards represent big changes within accounting departments. All companies with annual turnover of more than £6.5 million are required to make the switch to the FRS system from April 2016. With the deadline looming, 1STOPXBRL is urging businesses to enlist its help in migrating to FRS iXBRL now.

1STOPXBRL Helps Businesses Prepare For Regulatory Change from UK GAAP to FRS 101 and 102 iXBRL

“Change is upon us, whether we like it or not. 1STOPXBRL is here to help make the transition as smooth and stress free as possible. Our tailor made iXBRL service can be scald to suit the individual needs of SMEs and blue chip firms alike,” remarks Andrew Stewart, CEO & Founder.

For over 25 years 1STOPXBRL’s CEO has been providing financial compliance solutions to clients across the globe. From international corporations to independent financial and legal firms, service is steeped in quality, professionalism and an in-depth understanding of financial matters.

For businesses experiencing major headaches, 1STOPXBRL is a proven solution. The group has been converting to FRS since Jan 2015, with a 100% record in quality and HMRC compliance. As well as big name clients such as BDO and Samsung, 1STOPXBRL helps businesses of all sizes across the UK transition to FRS compliant iXBRL.

To find out more about 1STOPXBRL and how the group is helping businesses get FRS ready, go to: www.1stopxbrl.com

info@1stopxbrl.com
+44 (0) 20 77577470

About

Located in the heart of London’s financial centre, 1STOPXBRL is a quality focussed firm that specialises in providing global financial compliance solutions. Clients are offered tailor made services, backed with ISO 9001 and ISO 14001 Certification, as well as HMRC Accreditation for Accounts & Tax Computation iXBRL services. The group boasts a wide portfolio of international clients, including both large and small companies.

The post How to stay iXBRL compliant with new accounting standards. appeared first on 1stopXBRL Limited.