How understanding XBRL tips the ESEF balance
“Good knowledge and understanding of XBRL can turn your mandatory ESEF submission into an opportunity to transform the way your data is presented, and avoid common errors,” says Pierre Pottier of Invoke in a recent opinion piece – and we heartily agree!
The European Single Electronic Format (ESEF) is truly digital: documents contain data that can be captured and analysed by software, rather than simply being ‘electronic paper.’ It’s therefore a hugely important first for Europe, likely to pave the way to future common practices, as well as providing valuable lessons learnt. While it offers new challenges to navigate, “if every actor in the submission process has a good understanding of XBRL, then obstacles at every stage can be overcome.”
Pottier argues that knowledge of XBRL will enable companies to turn their ESEF report into a digital experience. “Reporting in this format could open up real opportunities for companies to provide more engaging, interactive material whilst still providing the structured data that is required,” he says. XBRL-savvy filers also benefit from an understanding of the impact of their tagging choices in ensuring the quality of the final report, and form a more efficient process.
The piece also emphasises the importance of communication and information-sharing within organisations and with external agencies. “And communication shouldn’t stop once the submission is complete; in fact, this is a vital time to reflect on the process, what went well and what didn’t, areas of improvement and most importantly, to anticipate changes next year.”
Read more here.
