Top ESEF Reporting Mistakes: How to Identify and Rectify Them

Inappropriate Sign Use:

Positive or negative values in XBRL are defined by the concept definition rather than by how they affect financial accounts. A common error that could cause misunderstandings is to report the negative cost of sales when it should be positive.

Unreliable Replicas:

Uncertainty caused by varying numbers for Net Cash Flow from Investing Activities is problematic. Inconsistent duplicates are discouraged by ESMA, which highlights the need for precision and consistency.

Inconsistencies in the Calculations:

One must closely examine the rounding errors because they can manifest as inconsistencies in calculations. They must be verified again to ensure innocuous rounding errors, even though they shouldn’t prevent validation.

Hidden Transformable Facts:

There are visual and technical layers in iXBRL files, and only the technical layer’s facts are hidden. The only data that should be buried in the Transformation Rules Registry are those that lack transformation rules.

Redundant Labels:

Extensions that redefine base taxonomy names without changing their meaning are superfluous. This procedure increases the size of the report and reduces the transparency of ESEF reporting.

Inaccurate Dates of Balance:

It’s essential to distinguish between the opening and closing balances for correct reporting. One must follow different norms for instant and duration facts for accurate data representation.

The Package Name is Incorrect:

Problems occur during file downloads because browser-generated extensions may cause inconsistencies. Maintaining coherence within folders requires consistent file naming.

It is imperative to exercise caution, adhere to standards, and conduct extensive review processes in response to these common ESEF reporting errors. This guarantees accurate and compliant financial reporting.