With the ESMA-ESEF iXBRL mandate fast approaching – it takes effect on January 1, 2020 – it’s important that companies prepare for the change from the PDF format to iXBRL format of their Annual Financial Reports. All companies will need to choose either a software provider, if they plan to prepare iXBRL in-house, or an expert iXBRL service provider if they plan to outsource the conversion of their AFR to iXBRL format. ESEF Compliance
Here’s an 8 point checklist for a smooth ESEF Compliance reporting
1. XBRL Partner Credentials
Research the background and credentials of the reporting solution or service provider. Check the years of experience, number of XBRL professionals available on their team, countries they have worked in, and number of iXBRL filings they have handled in the past.
2. Customer References
Ask for references from current customers. If you can speak with reference clients from your own country, great. If not, look for references from other countries where issuers are required to comply with the ESMA mandate as well. Or look for references outside the EU, where issuers were faced with a mandate similar to ESMA – needing to submit documents in the iXBRL format, requiring familiarity with the IFRS taxonomy, and dealing with aspects of extensions, stylized documents, and local language requirements.
3. iXBRL Training
iXBRL reporting requires an understanding of the basics of tagging. ESEF also has additional requirements such as the creation of Company taxonomy, extensions, anchoring, and validations. Make sure adequate training sessions are a part of the solution/package that you choose. Check if there is a possibility to get a trial run in creating an iXBRL document with your latest published annual report.
Here is an IRIS CARBON® offer
Reach out to us before the ESMA mandate goes live, and we will create a sample iXBRL document of your company’s last published AFR at no cost and with no obligation
4. Tagging approach, ability to handle stylized documents
Ensure that tagging of the AFR is done on the face of the document and not using an excel tool or template. If you are presented with an excel template, beware- it is not iXBRL. Excel tools cannot handle the style and design aspects of your AFR.
5. Expert iXBRL Support Availability
A new regulation often needs more careful attention and implementation. Make sure the solution provider offers adequate support and expert assistance when you need it. Check if the service provider works in your timezone, and ask for the modes of contacting support — email, phone, or online chat. Make sure that you are adequately covered when you need help. Also, check if the service provider is going to charge you extra for any additional support hours.
We offer unlimited, expert assistance 24/7 at no extra cost.
6. Turn Around Time (TAT)
If you are looking for an outsourced option, ask about the typical turn-around time for converting documents to iXBRL. If it is more than 2 weeks, it is probably too high.
7. Flexi Models
Does the service/platform have the flexibility to switch from an outsourced model to an in-house model if needed in the future? Also, does the iXBRL solution also have any additional disclosure management modules to help streamline your overall annual report preparation process?
8. Future-proof solutions
Ensure the solution or service provider is abreast of technical know-how with regards to the ESMA ESEF iXBRL mandate, especially the ability to update the solution for newer versions of the ESEF taxonomy or validation rules quickly.
Did you know iXBRL reporting can help you get more investor traction?
Check if your iXBRL document can be provided as an interactive link on the Investor Relations section of your company’s website. This will help your investors and analysts tracking your company see a smart, searchable and interactive document.
Remember – in the end, it is your iXBRL filing, and you are ACCOUNTABLE!
Choose your service provider or reporting solution wisely!
IRIS is the most trusted name in XBRL implementation and reporting, and since 2005 has provided solutions for more than 26 regulators and 1.5 million filers across the globe. Preparation of Inline XBRL documents is easy with IRIS CARBON®, our cloud-based, collaborative, single-source disclosure management solution. For more information, or to schedule a consultation, send us an email at info@iriscarbon.com.
