1 / 26

EuroFiling Conference

5 STRATEGIES TO ADOPT FOR A SMOOTH ESEF iXBRL COMPLIANCE<br>-Understanding the Mandate<br>-Reviewing Options<br>-Narrowing Your Choices<br>-A Few Things to Watch Out For <br>-Planning your Calendar

itseladworld
Download Presentation

EuroFiling Conference

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 5 STRATEGIES TO ADOPT FOR A SMOOTH ESEF iXBRL COMPLIANCE ANURADHA R. K PRODUCTHEAD IRISCARBON® Frankfurt, 17 June 2019 .

  2. A PRESENTATION ON A MONDAY LET’S START WITH A DIFFERENCE https://www.youtube.com/watch?v=inhYO97OU3I

  3. AGENDA The ESEF mandate in brief What is XBRL? What is iXBRL? Who needs to comply with the ESEF mandate 5 STEPS TO ADOPT FOR SMOOTH ESEF IXBRL COMPLIANCE Understanding the Mandate Reviewing Options Narrowing Your Choices A Few Things to Watch Out For Planning your Calendar 3

  4. ESEF: THE NEED FOR STRUCTURED DATA REPORTING Average size of an annual report: 165 pages Number of listed entities 5 300 Number of pages EU regulators has to go through in 1 year 874 500! Needs an army of people! Time taken to go through 874 500 reports ? XBRL is machine readable, data can be processed, verified and analysed by machines quickly!

  5. STEP 1: UNDERSTANDING THE MANDATE

  6. THE ESEF MANDATE The European Securities and Markets Authority (ESMA), has mandated digital financial reporting in inline eXtensible Business Reporting Language (iXBRL) THE CHANGE PDF iXBRL Companies were earlier submitting Annual Financial Reports(AFR) Now they will need to submit these Annual Financial Statements in iXBRL format

  7. THE MANDATE SCOPE WHO IS IT FOR? Consolidated financial statements for financial years beginning on or after 1 January 2020 •Primary Financial Statements: 2020 •Block tagging of Notes: 2022 •Detailed tagging of notes: Voluntary 5 300 listed entities preparing AFR using IFRS standards

  8. XBRL VS INLINE XBRL XBRL is machine readable only

  9. XBRL VS INLINE XBRL iXBRL is both machine readable and human readable (HTML)

  10. SOME COMMON QUESTIONS Build in house capability? Outsource to experts? Integrate iXBRL with document? Get to iXBRL after the document is complete? How do I ensure quality ? How do I pick the right solution?

  11. STEP 2: REVIEW OF OPTIONS

  12. REVIEW OF OPTIONS EXISTING SOLUTION PROVIDER Check if your existing solution provider offers iXBRL in an all in all-in-one solution Support for Extensions Anchoring Formatting Company taxonomy creation

  13. REVIEW OF OPTIONS AFTER AFR PREPARATION ALONG WITH AFR PREPARATION WHEN Don’t want to disturb existing AFS preparation and finalization process You want to complete iXBRL review along with AFR finalization IN-HOUSE TEAM Have accounting/finance and IFRS expertise Willingness (and bandwidth) to learn and undertake the iXBRL process in-house OUTSIDE EXPERTS Do not have the bandwidth, resources to take iXBRL process in- house BLENDED BY WHOM Have accounting / finance experts Interest in understanding iXBRL, at least for review / to ensure quality EMBEDDED SOLUTIONS (ACCOUNTING PACKAGE) Accounting software already has iXBRL creatio capability. SPECIALIZED XBRL SOFTWARES Software specifically designed only for iXBRL creation purposes. DISCLOSURE MANAGEMENT SOFTWARES SaaS product with ability to collaboratively create and manage AFR + iXBRL creation and review. HOW (TOOLS) ANY SOFTWARE n

  14. TREND ACROSS THE WORLD

  15. STEP 3: NARROWING YOUR CHOICES

  16. QS THAT CAN HELP YOU AS YOU MAKE YOUR CHOICE Does your in-house accounting systems/ERP have the ability to generate iXBRL? Are you able / willing to invest time and resources in building iXBRL capabilities/ the mandate? How important is visibility and control of your iXBRL for you?

  17. STEP 4: THINGS TO WATCH OUT FOR

  18. THINGS TO WATCH OUT FOR On-Document Tagging Vs Template Based Tagging Completeness of Tagging Template based tagging is not iXBRL •Based on the phase of the mandate. Click: Example of On-document tagging •ESEF taxonomy has 4 662 elements. •Use ESEF tags where appropriate, for the rest, create extensions

  19. THINGS TO WATCH OUT FOR Extensions and anchoring Support multiple languages Ability to handle extensions and anchoring in the same solution Ability to view EU taxonomy with 23 language labels

  20. 7 POINTS CHECKLIST 1 XBRL Partner Credentials Remember – in the end it 2 Customer References 3iXBRL Training 4Expert Assistance 5Turn Around Time (TAT) 6 Flexi models 7 Future Proof Solutions is your iXBRL filing, and you are ACCOUNTABLE!

  21. STEP 5: PLAN YOUR FILING CALENDAR

  22. PLANNING A FILING CALENDAR 1 5 6 3 2 4 ESEF Filing Annual Report Ready for Tagging Decide Strategy Explore Options Test run using your latest available AFR Finalize Provider & Software iXBRL Review Ready ESEF iXBRL PLANNING T-210 T-240 T-90 T-0 NOW ! T-180 22

  23. TO SUMMARIZE

  24. QUICK TAKEAWAYS Mandate Applicability Remember • Listed companies issuing shares or bonds •iXBRL is not XBRL • Filings of annual reports after 1 Jan 2020 • Scope of tagging: Facing Statements first, block tagging of notes second, tagging of numbers in notes voluntary Pick the best fit strategy for you •Don’t hesitate to explore options A few things to watch out for / checklist • • • Tagging –On-document Completeness of Tagging Anchoring, extensions, formatting and more ALL IN ONE SOLUTION

  25. Anuradha RK IRIS BUSINESS SERVICES LIMITED anuradha.rk@irisbusiness.com

More Related