ESMA Initiates Inline XBRL Testing
Issuers listed on stock markets in the EU are governed by the European Transparency Directive. This directive requires such listed companies to prepare and submit financial reports in a European Single Electronic Format (ESEF).
European Securities and Markets Authority (ESMA) is responsible for framing, maintaining and updating this directive that governs the list companies in the EU. Recently, ESMA decided that Inline XBRL (iXBRL) is the most suitable electronic format for listed companies to file their annual financial report. ESMA is planning to implement ESEF iXBRL filing starting from 1st January 2020. As a result, ESMA is scheduling the rollout of a series of tests involving software vendors and issuers on EU regulated markets. Issuers participating in this testing program will receive free support from the regulator. It is expected that participating issuers will have the choice to choose from the list of software shortlisted by ESMA. This testing does not involve live unpublished financial data.
DataTracks encourages issuers in the EU regulated markets to participate in this testing program. DataTracks will partner with ESMA to achieve the following:
- Test and provide results to ESMA’s filing systems
- Test and make ready DataTracks’ own iXBRL compliance software
- Prepare listed companies for iXBRL compliance
In the US when SEC mandated XBRL filing in 2009, listed companies had hired consultants from the Big Four to compile an implementation strategy by paying significant costs. Here is an opportunity for European listed companies to volunteer and participate in this no-cost consulting project that has direct involvement of the regulator and leading software vendors.
Inline XBRL is an advanced version of XBRL where the former is both human- and machine-readable and the latter is only machine-readable. ESMA’s iXBRL mandate for listed companies in Europe is expected to be in place by 2020.
ESMA’s press release on Inline XBRL testing can be found here:
About DataTracks: DTracks Limited is a subsidiary of DataTracks Services Limited. DataTracks is a global leader in the preparation of financial statements in XBRL and iXBRL formats for filing with various regulators. With a track record exceeding twelve years, DataTracks prepares more than 12,000 XBRL statements annually for filing with regulators such as HMRC in the United Kingdom, Revenue in Ireland, SEC in the United States, ACRA in Singapore and MCA in India.