From 1 January 2020, issuers of securities listed on EU regulated markets must prepare and publish their annual financial reports (including financial statements) in the European Single Electronic Format (ESEF ). This means that from the financial year starting 1 January 2020 (and later), issuers had to change the way they published their financial results.

The European Single Electronic Format (ESEF) is under the auspices of ESMA (European Securities and Markets Authority), which requires all companies listed on a major market in Europe (and the UK) to prepare and submit their annual financial reports digitally in iXBRL format. ESMA aims to improve the analysis and comparability of financial statements and make the information more accessible to both companies and auditors.

The iXBRL format introduced is an electronically tagged xHTML file, which differs from the previously used format for the publication of annual reports (electronically readable PDF) and requires specific technology for tagging or converting iXBRL.

What does this mean specifically for issuers?

Issuers must publish their annual financial reports in xHTML format. Furthermore, companies that prepare consolidated IFRS financial statements must tag the information contained therein in the iXBRL markup language, using a taxonomy defined by ESMA.

What is the future of the European single electronic format?

It is clear that there will be a gradual expansion of the information to be disclosed in accordance with the ESEF. An example is the non-financial sustainability reporting (ESG), which according to the Corporate Sustainability Reporting Directive (CSRD) is to be published in a digital format that will be prepared in accordance with the ESEF.

What can we help you with?

Experienced professionals from the fields of audit, IFRS and IT services are dedicated to this issue. We have extensive experience in the verification and translation of more than 100 annual financial reports for both corporate and bank issuers. We have specially designed software that enables us to efficiently ensure ESEF compliance in a timely manner and at a reasonable cost. Our services are available to both Czech and foreign companies.

For our clients we provide:

• full service with conversion of annual report to XHTML format and tagging using XBRL taxonomy
• revision of financial statements according to ESEF requirements
• support in the selection and implementation of technical solutions
• training