Daily Fintech

XBRL: digital transformation of reporting, systemic approach to non-financial information and ESAP

Today, we share long-form substance about three topical news items. 

1 IMA publishes report on digital transformation of compliance and reporting

The Institute of Management Accountants published a report advocating for a data revolution that would transform business reporting, oversight, auditing, and monitoring systems. Increasingly complicated and fragmented regulatory environments make compliance overly burdensome for businesses, while also inhibiting investors and other users of corporate reporting from obtaining useful information. In the midst of global pandemic, where access to quality data from remote locations is paramount, the need for a solution is even more critical.  

Using the example of the UK banking sector, IMA shows how multiple regulators, submission platforms and data formats multiply the ultimately unproductive reporting requirements to comply with regulation. A streamlined, systemic approach would allow for significantly higher efficiency without compromising regulatory goals. 

2 Accountancy Europe on interconnected standard-setting

In December 2019, Accountancy Europe has published a paper describing and calling for a global solution to interconnected standard-setting that can meet the need for reliable, consistent information in non-financial reporting that is interconnected with financial reporting. A follow-up paper has now been made available that analyses the feedback received, provides an update on the latest EU and global developments, and reflects on a way forward.

Incoming European regulation on non-financial information (read: ESG) is a prime opportunity for the above approach to reporting regulation and supervision. Chances are good that this input falls on fertile ground, especially considering the following …

3 Proposal for a EU Single Digital Data Access Platform (ESAP)

The recently released New Vision for Europe’s Capital Markets Report sets out an in-depth and granular plan of action to tackle the obstacles that have discouraged cross-border and foreign investment in the EU – including a single access portal for freely accessing all financial and non-financial data on eligible EU entities. 

Lacking something like the US consolidated tape with its associated benefits, one of the most annoying gaps of the EU regulatory framework for XBRL corporate reporting might be filled with the proposed ESAP, namely the heterogeneous landscape of regulatory disclosure. Will we get the European EDGAR with ESAP? Watch this space!

 

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Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.

 We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.

 For context on XBRL please read this introduction to our XBRL Week in 2016 and read articles tagged XBRL in our archives. 

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