Finnish Kesla Published Their 2020 Annual Financial Report in ESEF
Like public listed companies all over Europe, Finnish Kesla Oyj had prepared to publish their 2020 annual financial report in ESEF, but one misplaced symbol almost threw a wrench in those plans. Luckily, it didn’t, but we will get back to that.
Kesla Oyj was founded in 1960 by a Finnish farmer, but today the company employs 250 individuals who work with the marketing and manufacture of tractor equipment, harvesting machinery and vehicle mounted as well as industrial cranes. The company is listed on NASDAQ Helsinki, and in their annual report for 2020, they were able to report a turnover of 40 million euro.
After they published their annual financial report in ESEF, we sat down with Sarita Kortelainen, financial manager and member of the management team at Kesla Oyj, to talk about their experiences with the new European Single Electronic Format.
Preparing to Publish an Annual Financial Report in ESEF
There are almost as many reasons to choose a specific ESEF provider as there are ESEF providers. Some companies prefer to handle every step of their reporting process within the same tool while others want full control over the mapping process.
“At Kesla, we do a lot of specialist work ourselves, but when it comes to tasks that require special expertise we rely on outside assistance and the ESEF mandate brought with it both financial management regulations and coding tasks,” Sarita Kortelainen started, when we asked her about their thought process behind choosing an ESEF provider. “We wanted an ESEF provider whose software solution was flexible to the needs of a smaller listed company, but we also wanted a high level of support, speed of tagging, preservation of the annual report layout, and cost-effectiveness. In truth, I wasn’t sure if it was possible to find a partner who met all the criteria,” she finished with a smile.
The Challenges Are Not Always Compliance
“I was very surprised by the level of customer service the ParsePort team was able to deliver. In both financial and ICT roles, a small mistake can grow to a mountainous size. Stock exchange release waits for no one. If the situation requires it, you may have to settle for ‘good enough’ instead of ‘perfection’ if it means you can maintain your schedule. However, at Kesla we strive to do things better, and it was great to see that ParsePort share those same values,“ Sarita Kortelainen said when we asked about her experience converting their 2020 annual financial report to ESEF.
During the conversion of their annual financial report, the team at Kesla experienced a very minor, but still very significant error. The error did not hinder the conversion, and their zip-file was even approved by their auditor while containing said error which meant, that they were completely ready to publish their 2020 annual financial report in ESEF.
However, the error did present them with one central issue. Because ESEF files are structured the way they are, they arrive in a zip-package, which makes them impossible to read without dedicated consumption software. To remedy this, most XBRL providers provide companies with a way to generate a file with a viewer embedded, so the information can be accessed without advanced software.
The error Kesla experienced, meant that they could not generate a viewer file. Naturally, Kesla reached out to the mapping team at ParsePort who started investigating the error to solve it before Kesla’s publishing deadline.
One Persistent ParsePort Employee Found the Needle in the Haystack
It took one very persistent developer an entire day of combing through the 43MB annual financial report in ESEF that Kesla had produced, but it yielded results. Kesla’s 2019 report, which was used to create their conversion template, had contained a tagged footnote, but their 2020 report didn’t and instead of deleting the footnote from the conversion file, the amount had been replaced with a “-“, which caused the error.
“The absence of a viewer file would not have prevented the publication of the ESEF financial statements, but the ParsePort team would not settle for good enough. They strive for excellent service, and their developer managed to find the needle in the haystack in time for us to publish with a viewer file alongside our zip-package,” Sarita Kortelainen said when we asked her about the hectic experience.
Kesla Published their 2020 Annual Financial Report in ESEF
On the 11th of February 2021, Kesla published their 2020 annual financial report in ESEF, “If we had ended up not being able to generate the viewer file for 2020, it would have been okay, but I think ParsePort really proved what a high level of support they offer their customers,” Sarita said.