Changes in ESMA ESEF Taxonomy 2019 – Brief Overview

The IFRS Foundation is a non-profit organisation established to develop high-quality, comprehensible, enforceable and globally accepted accounting standards. The IFRS Foundation also issues the latest version of IFRS based taxonomy every year to include changes in IFRS standards.

The accounting bodies /XBRL regulators in several countries around the world use the taxonomy issued by IFRS Foundation as a base taxonomy for implementation of XBRL in their respective countries.

ESMA ESEF Taxonomy Upgrade - History

ESMA released the first version of its taxonomy (ESMA ESEF 2017 Taxonomy) on 21st March, 2019 which was based on IFRS 2017 taxonomy.  On 20th December, 2019 ESMA released an updated version of the taxonomy (ESMA ESEF Taxonomy 2019) based on IFRS 2019 taxonomy.

What are new updates?

The ESMA ESEF Taxonomy includes changes/updates made in taxonomy resulting from:

Common reporting practice:

Relating to disclosure requirements in IFRS 13 Fair Value Measurement. From the year 2012, IFRS taxonomy started to include disclosures that are commonly reported by entities who apply IFRS standards in preparation of financial reports. These are known as ‘common reporting practices’. Common reporting practices are identified by the IFRS board by analysing IFRS financial statements across companies. Addition of such common reporting practices in the taxonomy helps entities in saving time while mapping their financial reports using IFRS taxonomy because they don’t need to create custom elements for disclosures that are commonly reported.

Amendments related to: 

    • Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4) issued by the Board in September 2016
    • IFRS 17 Insurance Contractsissued by the Board in May 2017, and
    • Prepayment Features with Negative Compensation(Amendments to IFRS 9) issued by the International Accounting Standards Board in October 2017.

Enhanced data model for:

    • Reporting relating to continuing and discontinued operations.
    • Changes to better reflect disclosures in IAS 19 Employee Benefits and
    • Disclosures in IFRS 7 Financial Instruments: Disclosures.

Addition of new elements

IRIS has analysed the new elements added in the ESMA ESEF 2019 taxonomy on account of accounting standards updates. Here is the summary:

esma esef taxonomy

The taxonomy does not provide accounting references to abstract elements. An abstract element, or a header, is only used in a hierarchy to group related elements together, and cannot be used to tag data in an XBRL document.

These 584 ‘unique’ new elements are added multiple times in the ESMA ESEF 2019 taxonomy across several Extended Link Roles/ Presentation Links, making the total count of new elements even higher at 904. Below is the summary of new elements added ELR wise:

ESMA ESEF taxonomy

Elements deleted in the ESMA ESEF 2019 taxonomy

Apart from elements added, the ESMA ESEF 2019 taxonomy has also removed 167 elements which were part of the earlier ESMA ESEF 2017 Taxonomy. Reasons for deletion include:

Changes/modification in accounting standards:

For example: the element ‘ifrs-full:DisclosureOfRecognisedRevenueFromConstructionContractsExplanatory’ which has definition ‘The entire disclosure for revenue recognised from construction contracts with reference ‘Expiry date 2018-01-01 IAS 11 2017-01-01 Disclosure’’, referred to the International Accounting Standard 11.

The IAS 11 — Construction Contracts standard has been replaced by ‘IFRS 15 — Revenue from Contracts with Customers’. Hence, the corresponding tag which references the IAS11 standard has also been deleted from the taxonomy.

Wrong data type:

For example, the element ‘ifrs-full:WeightedAverageSharePrice’ had the wrong data type ‘xbrli:monetaryItemType’ and documentation ‘The weighted average share price. [Refer: Weighted average [member]]’. This element has been deleted/deprecated and a new element ‘ifrs-full:WeightedAverageSharePrice2019’ is introduced with correct data type ‘num:perShareItemType’.

Re-modelling of taxanomy structure:

For example, in the presentation link ‘[823000] Notes – Fair value measurement’ in ESMA ESEF 2017 taxonomy there were specific line items available for the disclosures related to unobservable inputs. Please see the screenshot below:

In the ESMA ESEF 2019 taxonomy, a single generic element ‘ifrs-full:SignificantUnobservableInputAssets’ with definition ‘The value of significant unobservable input used in the measurement of the fair value of assets.’ is introduced, and all the line items highlighted above are replaced by member elements in the new taxonomy.

esma esef taxonomy

Changes in existing/older elements

Apart from adding and deleting elements from the taxonomy, the IFRS board also updates the XBRL attributes, documentation and references of existing elements as required. Below is the summary of these changes:

Apart from adding and deleting elements from the taxonomy, the IFRS board also updates the XBRL attributes, documentation and references of existing elements as required. Below is the summary of these changes:

ESMA ESEF taxonomy

    • Balance type is used to describe whether an element is expected to be reported with a debit or credit balance. The balance type for following 3 elements are assigned in the latest ESEF taxonomy, earlier these elements didn’t have any balance type.

ESMA ESEF taxonomy

    • Documentation is a human readable textual description of the accounting meaning of the elements. There is an update in the documentation of 69 elements.
    • References are used to link elements to authoritative literature, for example, for the element ‘ifrs-full:DisclosureOfBusinessCombinationsExplanatory’ the reference provided in taxonomy is ‘IFRS 3 2019-01-01 Disclosures’ which means this element is referenced to accounting standard IFRS 3.. There is an update in the references of 3904 elements.

We hope you found this high level summary of changes in the ESMA ESEF 2019 taxonomy useful. Stay tuned for our upcoming blog where we will deep dive into the accounting standard that has resulted in the maximum element additions to the taxonomy – the IFRS 17 standard around insurance contracts.

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Changes in ESMA ESEF Taxonomy 2019 – Brief Overview