Europe’s financial reporting landscape continues to evolve, and the European Single Electronic Format (ESEF) remains at the center of that transformation. What began as a technical compliance exercise is now a mature reporting discipline across EU markets. Introduced by the European Securities and Markets Authority (ESMA), the ESEF mandate requires listed entities to submit annual financial reports in a structured digital format that investors, regulators, and analysts can all rely on.
But as we enter 2025, ESEF reporting is entering a new phase, one that demands greater precision, design flexibility, and collaboration across finance, audit, and design teams. Whether you’re preparing your first or fifth ESEF filing, here’s what you need to know for a smooth filing season.
ESEF Reporting in 2025: What’s New
For many organizations, ESEF reporting is about building trust, transparency, and efficiency but 2025 is not “business as usual.” Updates to the IFRS taxonomy, tighter validation rules, and expanding auditor oversight are reshaping how companies approach their filings. Here’s why it’s critical in 2025:
1. IFRS 2024 Taxonomy Update
ESEF 2025 filings will be based on the IFRS 2024 taxonomy, which reflects recent accounting standard amendments. Companies must ensure that their tagging aligns with these updates, especially if they’ve adopted new IFRS disclosures.
In parallel, ESMA has proposed a 2025 ESMA IFRS taxonomy update.
On 11 September 2025, ESMA published the updated 2025 IFRS taxonomy, which includes:
- IFRS 18 – Presentation and Disclosure in Financial Statements: Replacing IAS 1, effective for annual reporting periods starting 1 January 2027 (early application allowed).
- IFRS 19 – Subsidiaries Without Public Accountability: Enhances transparency for non-listed subsidiaries.
The 2025 taxonomy allows companies to test and learn these new standards ahead of mandatory adoption, ensuring a smoother transition once the standards are formally endorsed at EU level.
ESMA also plans to release the annual ESEF Reporting Manual in 2025 to guide issuers through implementation.
Implementation Timeline:
- Mandatory for reports covering financial years starting 1 January 2026.
- Voluntary early adoption allowed for 2025 reports if the RTS on ESEF is finalized in time.
ESMA will also release the annual update of the ESEF Reporting Manual in 2025, providing detailed guidance for issuers on implementation.
2. Enhanced Validation Rules
ESMA and national regulators are tightening their review of technical errors. Issues like duplicate tags, incorrect anchoring, or taxonomy extensions that distort meaning are more likely to trigger rejections or follow-up inquiries.
Tip: Validate early and often using ESEF reporting software that automatically flags potential inconsistencies long before submission deadlines.
3. Focus on Design and Accessibility
Many issuers are realizing that compliance alone isn’t enough. Investors today expect well-designed, interactive digital reports that tell a coherent story.
Many companies are now integrating Adobe InDesign or other creative tools with their ESEF tagging software, maintaining both compliance and visual appeal in one seamless workflow.
4. Expanding Auditor Involvement
Auditors in most EU member states are now required to provide assurance not only on financial statements but also on the accuracy and structure of tagging. That means early collaboration between finance, audit, and design teams is critical to avoid last-minute surprises during assurance reviews.
Common ESEF Reporting Challenges
Even after years of adoption, many issuers still face recurring hurdles when preparing their filings.
Here are some of the biggest pain points seen:
| Incorrect or Inconsistent Tagging
22% of iXBRL filers were examined for tagging quality; 10% faced enforcement actions for non-compliance. [1] |
Inadequate Data Traceability
56% of directors believe complex supply chains and multiple IT integrations significantly hinder data traceability. [2] |
Manual, Fragmented Workflows 7% of filers received enforcement action due to late or faulty submissions, often caused by siloed teams and unstructured processes. [3] |
Poor Visibility and Control
40% of CFOs do not trust the accuracy of their financial data due to the team’s compromised visibility. [4] |
These challenges underline the growing need for integrated disclosure management tools, automated workflows, and real-time collaboration platforms, all of which are now central to achieving ESEF compliance.
Key Takeaways for 2025
- Stay ahead of taxonomy updates: Early adoption and testing reduce compliance risks.
- Validate frequently: Avoid errors by checking tagging and structure continuously.
- Focus on readability: Interactive, well-designed reports enhance transparency and investor confidence.
- Collaborate early: Finance, audit, and design teams must work together to ensure smooth filings.
When approached strategically, ESEF reporting becomes more than a regulatory task, it’s an opportunity to demonstrate transparency, governance maturity, and a commitment to digital transformation.
And with the right ESEF reporting software, companies can simplify the entire process while ensuring full compliance with the ESEF mandate.
[2] Aeologic Blog: What is traceability and its challenges in industry
