ESEF-compliant financial statements in iXBRL format

Reporting responsibilities

Under a European Commission regulation, starting in 2021, all issuers whose securities are admitted to trading on a regulated market within the European Union are required to prepare annual reports in the European Single Reporting Format (ESEF).

The new obligations relate to the labeling of consolidated financial statements prepared in accordance with IFRS using the XBRL- tagging language in accordance with accepted taxonomies and principles. The obligation applies to fiscal years beginning on or after January 1, 2020.

ESEF reporting - support in preparing reports

Aider Polska (MDDP Outsourcing), in cooperation with EQS Group, is simplifying the process of preparing annual financial statements in iXBRL format for Polish capital groups. Taking advantage of the service to prepare financial statements in XBRL format is a very good solution for many companies, struggling every day with more and more new regulations and requirements.

Benefits of choosing the service:

Optimization of teams' time
No need for a long-term license
No need to install additional applications
No need to hire additional IFRS and IT experts
No need for long-term implementation and software upgrade needs
No need to deal with complex XBRL tagging.

How does the service work?

With no investment in expensive software, and no need for time-consuming changes to the process of preparing financial statements, capital groups receive from us a ready-made report in iXBRL format.

Capital groups that have already used our serviceto convert theirfinancial reports to XML format know that little will change for them in the existing process of preparing their annual financial statements.

The report is sent in the usual format (Word or PDF) to the EQS COCKPIT system. Once the report is received, the IT team, in cooperation with the IFRS team, takes care of converting the report to XHTML format along with tagging mandatory items, according to the XBRL/iXBRL markup language.

Once the iXBRL file is prepared, the report is made available for secure download in the EQS COCKPIT system. After the issuer approves the report, the report is approved in the FSC system (ESPI)

The tagging (tagging) service for the report provided to us by the client facilitates the process of preparing the ESEF-compliant annual report in accordance with all regulations as of the date of its publication.

What is the ESEF?

ESEF (European Single Electronic Format) is the single European reporting format in which all issuers whose securities are admitted to trading on a regulated market within the European Union are required to prepare their annual reports .

The overarching goals of implementing ESEF include:

ensuring greater transparency and comparability of reports, regardless of language, structure or format
enabling easier creation of financial databases on issuers.

Digitizing the financial information that issuers provide in a way that guarantees readability in web browsers will also enable machine reading by specialized IT software. Under the new uniform standard, annual reports are to be published using XHTML, while annual consolidated reports prepared in accordance with IFRS are to be additionally tagged with XBRL tags.

What is XBRL?

XBRL (Extensible Business Reporting Language) is a tagging technology for identifying and describing information within an entity's financial statements. XBRL tags should be included by Issuers in an XHTML (Extensible Hyper Text Markup Language) document, which is the format that the consolidated financial statements will have. The XHTML format should be readable by almost any web browser.

What does the new iXBRL format mean?

All annual reports are prepared by issuers in XHTML format. These reports can be opened and viewed using a standard web browser;
consolidated financial statements prepared in accordance with IFRS, which are components of consolidated annual reports, are tagged using the XBRL tag language;
XBRL tags should be placed in an XHTML document using the Inline XBRL standard specification;
the taxonomy to be used is an extension of the IFRS taxonomy developed by the IFRS Foundation;

Since ESEF is based on XBRL technology, no other format will be accepted.

ESEF - reporting with the support of an XBRL advisor

Each company has its own characteristics and differently structured financial reporting processes. Listed companies, due to their size and sensitivity of data, require special attention. The financial departments of such companies require a thorough knowledge of IFRS and reporting on stock exchanges. The possibility of relieving the burden on companies by selecting a professional XBRL consultant to prepare an efficient and error-free report in XBRL format is a most advantageous solution.

Moreover, the expenditure of time and resources required to select (as well as implement) the appropriate software and train human resources in this regard may be beyond the capabilities of smaller companies. Choosing XBRL consultant may prove to be a favorable solution both in terms of price and content.

By choosing the services of MDDP Outsourcing, you can count on practical knowledge of the tool to prepare the required format, its specifics as well as substantive knowledge to perform the service.

We encourage you to use the services of MDDP Outsourcing reporting team by contacting our accounting offices in Warsaw and Katowice.