Nordecon AS, founded in 1989, is one of the largest construction companies in Estonia. Nordeconʼs activities cover nearly all segments of the construction market, with its specialists providing high-quality and comprehensive services to clients in the construction of business centers, production buildings, and non-residential buildings, as well as in the fields of infrastructure – roads, landfills, utility networks, and port civil engineering works. Nordecon, which was previously known as Eesti Ehitus, operates in Estonia, Sweden, Ukraine, and Finland.
Dealing With A New Regulatory Mandate
The foremost business challenge before Nordecon was to prepare and file annual reports in a whole new format. The European Single Electronic Format (ESEF) mandate required companies to file high-quality digital annual reports with national regulators. Additional requirements were to come in with Phase 2 of the mandate.
No Familiarity With The New iXBRL Format
No one within the company had any experience with the Inline XBRL format. Words such as ESEF tagging, extensions, and anchoring were new and complex. Terms like instance documents, company taxonomy, and validations seemed highly technical. Team Nordecon needed the help of XBRL experts.
Meeting Filing Deadlines In A New Format
Team Nordecon had to understand the new mandate and its terminology. And they had to know how ESEF reports are prepared. All this had to be learned and applied in a few months if Nordecon had to file iXBRL annual reports at the designated time.
Why Nordecon AS Chose IRIS CARBON®
Team Nordeconʼs objectives from their ESEF filing were simple.
A High-quality ESEF Report
Team Nordecon needed their ESEF reports to be error-free. They also wanted their final xHTML document to look as good as their well-designed PDF annual report. By ensuring high-quality and impressive reports, they intended to increase the reach and readability of their annual reports.
A Smooth Validation Process
Team Nordecon realized that the true test of their ESEF reporting quality was clearing the regulatorʼs validation checks. To achieve that, they had to clear IRIS CARBON®ʼs in-built validations and achieve zero errors and warnings.
Team Nordecon got started on their ESEF report creation process with these twin objectives in mind.
The IRIS CARBON® Approach
Team Nordecon decided to outsource ESEF report creation to IRIS CARBON®. The following is the process that IRIS CARBON® and Nordecon agreed upon and implemented.
Training and Onboarding (2019 AFR)
The first step in getting team Nordecon on the path to ESEF compliance was training them to use the IRIS CARBON® platform and demonstrate the iXBRL tag selection process. For that purpose, Nordeconʼs 2019 annual financial report was set up on the IRIS CARBON® platform in Estonian and English. Thereafter, team IRIS CARBON® tagged Nordeconʼs five primary financial statements. This training process would come in handy when it was time for team Nordecon to review the finished ESEF document each year.
Dry Run and Test Filing (2020 AFR)
Once team Nordecon was trained on the basic ESEF procedure using their 2019 annual report, it was time to put the learnings into practice. In 2020, Nordecon had the option to postpone their live ESEF filings by one year. However, Nordecon decided to go for a dry run with their 2020 iXBRL-tagged annual report and do a test filing with their national regulator. The process was simpler this time. The 2019 report simply had to be rolled forward for the same iXBRL tags to be replicated in the 2020 report. Nordeconʼs auditors were happy with the tagging and had no adverse comments to offer. The company had a smooth test filing process with the Estonian regulator.
Successful Mandatory Filing (2021 AFR)
By this point, team Nordecon had seen two of their annual reports go through the ESEF tagging process, along with one test filing. So, the team had no jitters when it came to their first mandatory ESEF filing with the 2021 AFR. The roll forwarding, tagging, and auditing process could not have been smoother, and team Nordecon filed a high-quality and well-designed ESEF xHTML document to the regulator – in Estonian and English. It was an experience they were happy about.
“Team IRIS CARBON®ʼs work with us has been very professional. Their understanding of the financial as well as technical aspects of an ESEF filing is extremely sound. And I donʼt know how the team is available whenever we need them. Do they even sleep?”
Key Results Achieved
Team Nordecon had a pleasant experience working on the IRIS CARBON® platform. A
high-performance platform, coupled with unlimited and timely support from XBRL experts ensured Nordecon achieved the following results