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.
More Questions about ESEF? We have the answer!
How to create an ESEF reporting in no time - Plug & Play with the AMANA XBRL Tagger
In our webinar, we will present our solution outlining the simple handling of report production and the automated tagging support feature based on artificial intelligence (AI) developed by AMANA, which significantly simplifies the creation of ESEF reports.
Referents: Nina Schüller and Janis Steinmann
How to audit the upcoming ESEF text block taggings
The ESEF regulation mandates listed companies to publish their annual financial reports in iXBRL digital format. In many EU countries, the ESEF reports also have to be audited or reviewed. The main challenge of auditing iXBRL reports is the technical validation, checking of tags selected by the report creator and the comparison of the traditional format (PDF) with the new iXBRL format. Auditing iXBRL reports requires new knowledge for auditors and can only be done with a proper certified XBRL software.
Starting from 2022, the full notes to the financial statements have to be tagged with text block taggings, additionally to the main financial statements, which is a new challenge for preparers and audit firms. Various technical and business details have to be considered as part of the assurance.
In the webinar we explain the new rule, and show how the XBRL Auditor can used to face the challenge, and which new features have been implemented in the version 1.2 to facilitate the textblock tagging assurance.
The AMANA XBRL Auditor was developed on the basis of our many years of experience from hundreds of XBRL projects with a clear focus on the review and audit of iXBRL reports according to the ESEF regulation. Moreover, our software is already successfully used by numerous audit firms including Big Four firms .In our webinar, we will show you the features and benefits of the XBRL Auditor when auditing ESEF reports, as well as our experiences from the first year of ESEF.
Referents: Richard Bössen and Nina Schüller