ESEF

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ESEF reporting - European Single Electronic Format

The European Single Electronic Format (ESEF) is a standardized format used for the preparation and submission of annual financial reports of listed companies within the European Union. The main objective of ESEF is to increase the transparency and comparability of financial reports and to improve the efficiency of financial reporting.

WTS Advisory supports you in the implementation of ESEF and provides expert advice. Find out about the process of implementation, success factors and the support we can offer you in the preparation of ESEF reporting below.

Our ESEF expertise

Tagging of more than 1,000 financial statements

Coordination with over 15 audit firms

Multiple publications and webinars

Support for around 250 issuers

Team of more than 15 experts

Implementation of a standardized reporting format (ESEF): Requirements and challenges for capital market-oriented companies

Since the financial year 2020, issuers that fall within the scope of the ESEF Regulation must mark up (or label or “tag”) the primary financial statement components of the IFRS consolidated financial statements in accordance with the requirements of this Regulation. In addition, starting from the financial year 2022, there is an obligation to provide the IFRS notes to the consolidated financial statements with so-called text block elements. The ESEF basic taxonomy, which is based on the IFRS taxonomy, must be used for tagging.

The aim of ESEF is to make it easier to compare IFRS consolidated financial statements regardless of structure, language and format, to speed up the exchange of information and to avoid manual activities and system breaks.

The very extensive ESEF labeling requirements present preparers and auditors in particular with extreme challenges in the preparation and auditing process. These challenges are likely to increase further in the future due to the extension of the ESEF labeling requirements to sustainability reporting (ESRS and EU taxonomy).

Key success factors for ESEF implementation

Careful and needs-based selection of the required technical service providers and IT software for iXBRL labeling
Compliance with legal requirements and applicable IFRS
Availability of detailed IFRS expertise and in-depth reporting knowledge
Comprehensive knowledge of the ESEF basic taxonomy and ESMA's tagging rules
Software expertise for the technical implementation of tagging
Close cooperation between the corporate departments involved, such as accounting, IT, legal and investor relations
Allocation of limited resources and consideration of other regulatory projects (new IFRS, CSRD if applicable, etc.) CSRD, etc.)
Knowledge of the different focal points and preferences of the audit companies
Detailed time planning, taking into account trial runs if necessary

ESEF Services of WTS Advisory

Business conceptualization

Creation of business concepts for tagging primaries and notes
Assignment of the relevant basic taxonomy elements and suggestions for extensions, including specification of all attributes
Creation of the business concept in Excel, Word or PDF, for instance

Quality checks

Analysis of the technical validation messages
Detailed check of the primaries tagging (signs, decimals, labels, period context, presentation and calculation linkbase, etc.)
Check of used and omitted Notes tags

Workshops

Basics of the ESEF Regulation and the ESMA Reporting Manual
Understanding of technical validation
Notes tagging concepts (e.g. multi-tagging, detail tagging vs. block tagging, etc.)

Coordination with the auditors

Support in communicating with the auditors as a sparring partner
Implementation of adjustments required as a result of coordination with the auditors

Implementation

ESEF implementation in an existing disclosure management system (built-in software approach)
Support in the selection of a suitable disclosure management system incl. ESEF module

Documentation

Comprehensive ESEF documentation for more efficient creation and checking
Explanation of any remaining validation messages
Clear documentation of Notes tagging (e.g. used and unused elements)

ESRS and EU taxonomy

Expansion of our ESEF services to include the future tagging of sustainability information in accordance with ESRS and the EU taxonomy, if applicable
Introduction to ESG reporting

Extension of ESEF requirements to sustainability reporting

The Corporate Sustainability Reporting Directive (CSRD) stipulates that the existing requirements of the European Single Electronic Format (ESEF) also apply to sustainability reporting. In order to meet these requirements, the European Financial Reporting Advisory Group (EFRAG) has developed a special XBRL taxonomy. This means a considerable additional effort, especially for companies that were not previously subject to the ESEF Regulation. With our comprehensive expertise in ESG reporting and our many years of experience with ESEF, we will accompany you along your entire ESG path and support you in implementing the future requirements efficiently and successfully.

ESG Reporting

ESG Services from WTS

Here you will find an overview of all ESG services offered by the Tax, Digital and Financial Advisory divisions.

Learn more

Contact

If you are interested or have any questions, please do not hesitate to contact us.

Hans-Georg Weber

Hans-Georg Weber has been working for WTS in the Financial Advisory division since 2010 and has been a partner at WTS since 2012. His consulting services focus on accounting advice in accordance with the German Commercial Code (HGB) and IFRS, consolidated financial statements, transaction consulting (financial due diligence, company valuation, plausibility checks of business plans) and business management consulting. He is happy to answer any questions you may have about ESEF.

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IFRS 18

EU taxonomy

CSRD and ESRS

Financial Statements Support and Audit Assistance

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ESEF reporting - European Single Electronic Format

Our ESEF expertise

Implementation of a standardized reporting format (ESEF): Requirements and challenges for capital market-oriented companies

Key success factors for ESEF implementation

ESEF Services of WTS Advisory

Business conceptualization

Quality checks

Workshops

Coordination with the auditors

Implementation

Documentation

ESRS and EU taxonomy

Contact

Other topics that may interest you

IFRS 18

EU taxonomy

CSRD and ESRS

Financial Statements Support and Audit Assistance

Contact us today