Here are the three most relevant developments in the world of structured reporting we became aware of in the course of last week.
Just in time for the start of the second ESEF audit season 2021/2022, the HFA adopted the final IDW examination standard: Examination of electronic reproductions of financial statements and management reports prepared for the purpose of disclosure in accordance with § 317 para. 3a HGB (IDW PS 410 [10.2021)).
Important news for German ESEF filers in this (originally German) piece. ESEF’s major distinguishing characteristic is that the auditor needs to verify its contents against other modes of delivery (i.e. print / pdf).
The future of business reporting is incomplete without a significant increase in the quantity and quality of ESG reporting, ultimately mandated by regulators and included in the scope of the external audit. For ESG data to be of an auditable quality, a common standard is required, with a level of rigour equivalent to IFRS or US GAAP standards approved by the FASB (and for the US government, GASB).
There is not much to disagree with in this piece, except that it has been overtaken by recent developments out of COP26 / Glasgow …
The reporting standard XBRL is becoming more important than ever. XBRL (“eXtensible Business Reporting Language”) is an XML-based language and open global framework for tagging data – it has been described as a “a dictionary of tags” – and while it has been around since 1998, it’s only really in 2021 that it has really started to gain significant traction – amid growing demand for its use in both financial and ESG/sustainability reports.
Nice overview piece for business tech people who might not have come across our preferred four letter acronym, yet (where have you been hiding?!)
Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
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