ESEF issues and solutions - Text-tagging
Text tags are usually simple but sometimes the name of the tag is somehow misleading like „domicile of entity“ or other text tags. Sometimes the name of a concept is guiding you in a wrong direction. To help you avoid such common mistakes from the first year of ESEF implementation and save time and nerves, we have summarized the most common mistakes in "text tagging" from the first year of ESEF implementation.
1. „Domicile of entity“
Text-tagging seemed to be the easiest part of the process but it´s still can be a it tricky. For example, if we look for the „domicile of entitiy“, many have tagged the city instead of the country. For „Domicile of entity“ tag the country in which the company has its registered office. In the example below It would not be Düsseldorf but Germany.
Our tip: Double check that the country is selected. Furthermore it is also important to make sure that the tagged value is in the visible part of the report.
2. Text markup and double tagging
The text markup looks easy at first glance, but can contain small, tricky errors. It is often the case that "Domicile of the entity" and "Country of incorporation" refer to the same country. Another example is "Name of parent entity" and "Name of ultimate parent of group" which is often the same. In these cases, there is no need to search for values in different parts of the report.
Our tip: Double tag the same value with two different concepts. In addition, it is also important to ensure that the tagged value is in the visible part of the report.
3. „Principal place of business“
IAS 1.138a requires an entity to disclose the „Principal place of business“ only if different from the registered office. A lot of users tagged „principal place of business“ even if it was not required. The rules say that the principal place of business should be disclosed only if it is different from the registered office.
Our tip: Double check the necessary requirements to avoid unnecessary effort.