About the Mandate
The ESMA ESEF mandate is divided into phases. In phase 1 of the mandate, issuers must ensure that primary financial statements have been tagged according to the latest ESMA taxonomy. Phase 2 entails tagging all notes to their annual financial statements as a block tag along with the tagging of financial statements.
Phase 2 is applicable from 1st January 2022 i.e. for annual reports ending 31st December 2022. In phase 2 of the mandate, every note within the annual financial statements will be block tagged with XBRL tags applies to it. Users will be able to view the XBRL tags and properties once they click on the notes.
IRIS CARBON® comes with full support for Phase 1 and Phase 2 of the mandate.
IRIS CARBON® Overview
Let’s take a quick overview of the IRIS CARBON® platform for block tagging of notes in financial statements.
1. Platform Access URL
Users can log in to the IRIS CARBON® platform using the link above. It works best with Google Chrome and Microsoft Edge web browsers.
Upon login, users will see the ESEF iXBRL project assigned to them. Click on the project to enable and initiate the review process.
2. Access to Sections for Review
Lock the section to start tagging & review
- On locking the section, text appears showing who locked the section
- You can work on a section only when it is locked, so remember to always lock the section to do any work such as editing/raising comments
3. Block Tagging Notes to Financial Statements
- Select the note that you want to block tag and on right-clicking, select Mark Selection and Mark Paragraph
- The selected note is highlighted in blue indicating that the note is ready for tagging
4. Approach for Block Tagging
Below is an overview of the latest 2021 ESEF taxonomy for Text Block tagging. All of the text blocks and string elements can be found in the Extended Link role . Text block elements for Notes and accounting policies can be found in extended link roles 800500 and 800600 and further Details of Notes to financial statements can be found in respective notes
5. Finding the Right Tags
Search the appropriate tag from the latest 2021 ESMA taxonomy and once the element is selected, click on “copy tag” and paste it as a child in the company taxonomy
6. Getting ready to Block Tag
Notes 1 General Information is ready for tagging by clicking on the element, selecting the latest period, and clicking on Tag. A note with yellow highlights denotes that it is XBRL block tagged.
7. Reviewing the Block Tagging Of Notes
- Navigate to the “Review” menu and click on the XBRL Review icon. This will open an “Advanced XBRL Pane”.
- Clicking on a tagged Note in the section displays the tagged value on the right side of the screen as shown below. Please note, that numbers in yellow highlights indicate positive tagged Notes for XBRL.
- Reviewing select content: Clicking on a tagged Note will display properties like Element Name, XBRL Tag Properties, and Period. Users must check whether the element used for tagging is appropriate or not.
8. The iXBRL Viewer
The last step is to generate an iXBRL Viewer file and conduct a final review of tags on the XHTML document.
- For viewing the iXBRL files, one needs access to an iXBRL viewer. ESMA does not provide any viewer for the filers. However, IRIS has developed an iXBRL viewer for the issuers to see how their iXBRL document will look before submitting it to the national regulator.
- For accessing the iXBRL viewer, the user needs to click on Generate Output. Once the document is generated, click on the “Generate External Viewer Link”. Once you click on it, a popup window will open with the link. You can simply copy this link, open a new browser window and paste the copied link.
- If the user clicks on one of the tagged notes, it will show the tagged information in a pane below – with the details of label, elements, value, etc.
Voluntary Phase II Mandate on 2021 Annual Report
There were a handful of organizations that came forward and voluntarily adopted the Phase 2 mandate in their 2021 Annual Report using the IRIS CARBON® platform in the EU region to get ahead of the curve and familiarise themselves with the entire process.
Examples of the iXBRL Previewer Link that can be generated with IRIS CARBON® and published on company websites for investors and analytics are provided below.
Inline XBRL Viewer (iriscarbon.com) (Basware)
Inline XBRL Viewer (iriscarbon.com) (Aedifica)