NAXS Was Among the First Swedish Companies to Be Ready for ESEF
In the end of 2020, the potential delay of the ESEF requirement caused companies to hold off on getting ready for ESEF in the hopes that they could wait until next year. While the publishing deadlines drew ever closer, however, many countries still hadn’t given an official recommendation. This forced the companies to decide for themselves, and that is exactly what Swedish Investment Fund NAXS did.
NAXS decided to move forward with their ESEF implementation no matter what the Swedish authorities decided, and on the morning of February 5, 2021, they were ready to publish in ESEF. They were likely the first Swedish company ready to publish their annual financial report in ESEF, but we will get back to that.
After they had published their annual financial report, we sat down with Gösta Lundgren, CFO of NAXS, to talk about the process, and why they decided to get ready for ESEF instead of postponing.
NAXS Chose to Get Ready for ESEF Even If Sweden Would Delay the ESEF Requirement
In late 2020 an amendment to the transparency directive gave member states the option to delay the ESEF requirement by a full year. In mid-January 2021, however, the Swedish government was still deciding whether to let Swedish companies delay.
While the potential ESEF delay caused some companies to hold off on their ESEF implementation in the hopes that they could wait until next year, it did the opposite for NAXS.
“We knew that there was a chance we would have the option to delay, and we did consider it at first but in the end, we decided to go for it. Even if we postponed our ESEF implementation, we knew we would have to do it eventually.” Gösta Lundgren said, when we started talking about the option to delay reporting in ESEF in Sweden.
If the authorities aren’t quick to make an official recommendation, it will often lead to situations where companies are halted midway in the changes, they have already made to their reporting processes, unless they decide to ignore the potential delay and move forward with their ESEF preparations.
“We were already in the process of getting ready for ESEF, when the Swedish authorities announced the option to delay. That meant we had to make a choice. We could either continue getting ready for ESEF or we could halt the process and revert to the way we used to do things,” Gösta Lundgren said.
European Reliance Tested Their Files with the Stockholm Stock Exchange
“I still can’t get over how easy it is to convert annual financial reports to ESEF. I just uploaded the two files to the ParsePort XBRL Converter and clicked convert,” Gösta said, when we asked him about his experience performing a test conversion of their annual financial report for 2020.
“We had very few issues during the report creation process, and your support team was quick to help us resolve them. Honestly, I think most of the issues we had was due to it being the first time we were converting to ESEF,” Gösta said, “but that’s why we did it now. When we convert our 2021 report, it won’t be the first time. Now we know what to expect.”
“I would urge every company who needs to publish in ESEF to make a test ESEF report, and have it validated by their OAM or use one of the review tools,” Gösta said. “It’s easy, it doesn’t cost anything extra, and I’m certain it will make publishing our 2021 report in ESEF a lot smoother.”
An Unbeatable Product
On the morning of the 5th of February NAXS was ready to publish their annual financial report for 2020 in ESEF. “Due to a number of reasons, we decided not to publish our annual financial report for 2020 in ESEF, even though we did have a fully mapped report ready for publishing on the morning of our publishing date” Gösta Lundgren said with a smile. “It was never our intention to be the first company in Sweden to publish in ESEF. Our main focus was the process. We wanted to be ready for ESEF, plain and simple,” he added.
Finishing our conversation with Gösta, we asked him if he was happy with the way everything worked out. “I don’t think we could have been happier. The constant focus on our specific needs is what stands out to me the most, and the converter was so easy to use, that we were ready to convert the morning after we had learned how to use the tools. We have already booked time with the ParsePort mapping team in the beginning of 2022, where we will go over the mapping for our 2021 financial report. Personally, I think the ParsePort product is nothing short of unbeatable.”