29 Sep 29/9/20 – ESMA provides clarity on which ESEF taxonomies can be used for tagging the 2020 AFR
Many companies are considering doing a practice run (or ‘dry run’) ESEF tagging their 2019 Annual Financial Report (AFR). Although this is not mandatory it allows them to agree the ESEF iXBRL tags they are going to use with their auditors & other interested parties well in advance. A lot of ESEF solutions have ‘roll forward’ capabilities meaning that the iXBRL tags applied to the 2019 AFR can then be ‘rolled forward’ onto the 2020 AFR.
ESMA has already published the 2019 version of the ESEF Taxonomy so most companies will be using this for this practice run. The updated 2020 version of the Taxonomy will be released by end of calendar 2020. However, ESMA have clarified that either the 2019 Taxonomy or the 2020 version can be used for the tagging of AFRs with a year-end of 31st December, 2020. The 2020 ESEF Taxonomy is only mandatory for financial years beginning on or after 1st January, 2021. You can read more on this subject on the ESMA website here: https://www.esma.europa.eu/sites/default/files/library/esma32-60-607_final_report_draft_rts_amending_rts_on_esef_2020.pdf