Here are the three most relevant developments in the world of structured reporting we became aware of in the course of last week.
The Committee of European Auditing Oversight Bodies (CEAOB) has published revised guidelines on auditors’ involvement on financial statements in European Single Electronic Format (ESEF). Replacing initial guidelines issued in 2019, they take into account clarification from the European Commission of its ESEF audit requirements and anticipate further refinements based on experience of ESEF implementation.
One of the most important features of ESEF is that it is required to be audited by the company’s auditor, which extends the same quality assurance to the ESEF statement as apply to its old-school financial statements.
It’s no exaggeration to say that the EU has turned the page on a new chapter in corporate reporting, with the announcement this week of legislation to create the European Single Access Point (ESAP). This will gather filings from national bodies and provide a free single point of access to information on EU listed companies and investment products. It comes as one of a package of four legislative proposals intended to ensure that investors have better access to company and trading data, and encourage the capital markets union.
ESAP is shaping up to be the focal point of integrated corporate reporting from 2024.
As we approach the end of another year, finance teams all over the UK will be readying themselves for what can be their busiest and most challenging time – producing their companies’ Annual Financial Reports (AFRs). This year also sees the European Single Electronic Format (ESEF) become a mandatory requirement for main market listed businesses whose financial year begins on, or after, January 1, 2021 – which means the first wave of ESEF compliant reports will arrive by the end of April 2022 at the latest.
Soothing words for the end …
Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
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