ESEF FAQ's

We've created a quick FAQ to get you up to speed with ESEF. 

What is the purpose of ESEF?

ESEF aims to facilitate analysis and comparison of annual financial reports regardless of language, structure, or format. Tagged ESEF reports will enable investors, public authorities, and issuers to carry out automated analysis of financial information across businesses, their peer groups and wider sectors. For an intro to ESEF click here.

Who is in scope for ESEF?

ESEF is applicable for all main-market listed businesses across the EEA and in the UK. Consolidated IFRS accounts will need to comply with the ESEF tagging mandate. For non-consolidated reports, these must still be submitted in xHTML format, but tagging is not currently required for these reports.

What is the format of the final report for submission?​

The report for submission is an xHTML document with the iXBRL tags embedded. If applicable, the extension taxonomy used in the report will also be required for submission to the regulator.

Where do I submit my report?​

ESEF reports should be submitted to the regional Officially Appointed Mechanism (OAM). In the UK, this is the National Storage Mechanism (NSM) and in Ireland this is Euronext Dublin.

Has the UK diverged from the ESMA mandate?​

The UK has published its own taxonomy, the UK Single Electronic Format (UKSEF), an analogue to the European Single Electronic Format. The FCA plan to accept both taxonomies.

Do you support any other languages?​

Yes we support multiple languages. To date we have supported ESEF conversions for both French and Spanish annual reports.

Do our auditors need to review?​

It is still unknown what the audit requirements will be in the UK. For filers across EEA, the audit requirement differs between jurisdictions. We would recommend you contact your auditors when reviewing your ESEF report. If you would like specific information on the audit requirement in your jurisdiction, please get in touch.

What if I am listed in two jurisdictions?

If you are main-market listed in two jurisdictions in the EEA/UK, then you will have to submit your ESEF compliant report in both locations. OAMs may have differing filing rules so they may be slight amends to folder used for submission, such as the naming convention.

How involved does the client need to be with the iXBRL tagging of the accounts?

Our experts tag and review the iXBRL tags before returning the file to you. We also provide review documents so that you can review and make sure you are satisfied with each tag. This review takes places at the ‘Tagging Analysis’ stage of our process resulting in a reduction of time pressure at year-end close. Our service and process are designed to be cost effective, to minimise disruption and to give you back valuable time during the very busy financial close period. 

How does ARKK manage version control of documents?

We only require the final version of the PDF to apply the final tagging for submission and release, we do not require draft versions. However, we do offer this as an optional step in the case where a client may wish to run several iterations.

Our secure portal time stamps uploads and all versions are stored therefore there is no risk of files being overwritten and version control is maintained.

How will Director’s sign-off work?

For those listed on the LSE, in 2020 BEIS confirmed that the directors' sign off on the true and fair nature of the accounts stem from the Companies Act and therefore do not include any tagging.

How does ARKK handle a build-up of ESEF uploads in quick succession?

We constantly monitor our client’s deliverable needs, especially the expected reporting dates to ensure that there is more than sufficient capacity on our team to ensure that turnaround times will be maintained. We have extensive knowledge and experience in delivering out-sourced tagging, our iXBRL team complete 1,000 conversions a month in November and December each year. Take a look at a 'behind-the-scenes' preview of a tagged PDF.

What is block tagging?

The ESEF mandate requires issuers who produce consolidated financial statements and report in IFRS to block tag their policies and notes with XBRL mark-ups, alongside their primary financial statements. 

When will block tagging be mandated?

This will apply to annual reports with reporting periods starting on or after 1 January 2022

What is multi-tagging?

As a result of the complexity of ESMA’s requirements for block tagging, there may be pieces of information throughout the notes that will need to be tagged with multiple tags. ARKK use AMANA’s tagging tool (an XBRL certified software) which has no limitations to tagging multiple layers of one piece of information. As standard practice, ARKK complies to the ESMA mandate and tags all layers of granularity required.

Multi-tagging example

As a result of the complexity of ESMA’s requirements for block tagging, there may be pieces of information throughout the notes that will need to be tagged with multiple tags. ARKK use AMANA’s tagging tool (an XBRL certified software) which has no limitations to tagging multiple layers of one piece of information. As standard practice, ARKK complies to the ESMA mandate and tags all layers of granularity required.

If a company has an accounting policy for goodwill, this information will need to be tagged within 5 tags at least.
•           Description of accounting policy for goodwill
•           Description of accounting policy for business combinations and goodwill
•           Description of accounting policy for intangible assets and goodwill
•           Disclosure of significant accounting policies
•           Disclosure of notes and other explanatory information

Does the XHTML replicate the highly designed PDF?

One of the main premises of the ESEF mandate is to not disrupt the design of your annual report. ARKK use AMANA’s XBRL certified software to convert your PDF to XHTML before starting the tagging process. To date we have converted over 1,000 reports to XHTML, ensuring the output is an identical match to the pdf. Get in touch to request a proof of concept on your latest annual report.

What is ARKK’s confidentiality policy?

All our staff on the ESEF team have signed confidentiality agreements and a live list of our staff, position etc. is available to our clients so you have access at all times to this information to maintain your data insider list.

We will keep you up to date with all updates in our ESEF and UKSEF Knowledge Centre on LinkedIn.