The ESEF iXBRL mandate requires issuers to prepare their Annual Financial Report (AFR) in iXBRL format. ESMA has released the ESEF taxonomy using which issuers are required to choose the appropriate tag from the ESEF taxonomy and map such disclosures presented in the AFR. When the issuer does not find an appropriate tag in the ESEF taxonomy, they are required to create custom elements called ‘extensions’. In phase one of the mandate, companies are required to detail tag only the Primary Financial Statements. anchoring
What is Anchoring?
When an issuer creates an extension element, ESEF tagging guidelines require such extension to be ‘anchored’ to a narrower or broader element in the ESEF taxonomy. Below are some easy-to-understand examples that help to determine how to go about anchoring.
Anchoring to a broader or wider ESEF taxonomy element
The extension concept needs to be anchored to the closest concept available in the ESEF taxonomy. In some cases, the closest concept would be a broader tag available in the ESEF taxonomy. Following are some examples of tagging a concept to a ‘broader’ concept in the ESEF taxonomy and the different types of anchoring examples.
1. One on One Anchoring
Example: Income Statement of XYZ Company
One on One Anchoring- Broader Level
The extension concept for the line item ‘Crude oil and electricity revenue’ needs to be anchored to the broader ESEF concept ‘Revenue’ (IFRS-full_Revenue)
Example: Income Statement of ABC Company
One on One Anchoring- Disaggregations
The extensions concept for both the line items ‘Petroleum Revenue’ and ‘Petrochemicals Revenue’ needs to be anchored to a single broader ESEF concept ‘Revenue from the sale of petroleum and petrochemical products
3. Disaggregations with subtotal
Example: Statement of Financial Position of ABC Company
Sub-total values do not require anchoring.
The sub-total ‘Trade receivables, prepaid expenses, and other miscellaneous receivables from related parties is an extension element. The 2 components (child-items) of this line item are also extension elements ‘abc_TradeReceivablesFromRelatedPartiesAndPrepaidExpensesCurrent’ and ‘abc_RelatedPartyOtherReceivablesCurrent’. In this case, the extension child elements need to be anchored; however, the sub-total does not require anchoring.
Anchoring to narrower ESEF taxonomy elements (Combinations)
The concept of anchoring to a ‘narrower’ element in the ESEF taxonomy is required when disclosures are reported as a combination or summation items.
Example: Statement of Financial Position of XYZ Company
The extension concept for the line-item ‘Property, plant, equipment and Investment Property’ is a combination of two concepts in the ESEF taxonomy- ‘Property, plant, and equipment (IFRS-full_PropertyPlantAndEquipment) and ‘Investment Property’ (IFRS-full_InvestmentProperty), therefore the extension concept needs to be anchored the these two ESEF concepts.