ESEF, Competitive Intelligence and Greater Financial Transparency
ESEF – The New XBRL Exchange Format that Improves the Competitive Intelligence and Financial Transparency of EU Companies. This article was originally published in Spanish by E-Intelligent. It was co-written by the Spanish ParsePort sales and support team. Here we bring you an edited translation of the original text.
It is truly interesting that the EU has regulated, that all publicly listed companies in any EU country must create their financial reports in an exchange format that will allow for the collection of financial statements in a faster and more agile way.
Starting with the fiscal year of 2020, The European Markets and Securities Authority (ESMA) require all admitted, publicly traded and regulated EU issuers to prepare their annual reports in the iXBRL format. Inline XBRL is an XBRL embedded in HTML, which means that you will need to convert your usual annual report into the format.
But How Do You Convert Your Annual Report to iXBRL?
XBRL, or eXtensible Business Reporting Language, is a reporting language developed and maintained by XBRL International. iXBRL, or Inline XBRL, is an advanced standard of XBRL. But the European companies will need someone to convert their reports into iXBRL.
If you want to see what an iXBRL document should look like, you can find a number of converted annual reports in iXBRL format right here on our website.
The ParsePort cloud service allows you to upload your XLS (Excel) along with a PDF file and generate an iXBRL file within just a few seconds. Aside from being extremely simple to use, taking advantage of the service is also a way to outsource the most expensive and technically difficult parts of the conversion process such as the maintenance of taxonomies, mapping, and extensions.
This is probably why many publicly listed companies as well as accounting consultancies and audits, choose this solution for the conversion of their economic reports to the ESEF standard instead of investing a large amount of resources into handling it themselves.
Making the consolidated financial statements of all publicly listed companies in the EU available, in a format which is readable by VT&IC solutions, will provide companies with many opportunities related to competitive intelligence as well as create greater financial transparency within the EU.
Will this be the beginning of new formats for exchanging financial data?
This article was originally published by Spanish E-Intelligent on the 16th of July, 2020. It was co-written by the Spanish ParsePort sales and support team. If you want to read the full Spanish version of this article click here.