Does your Finance Department have a certified XBRL solution?

As of 2020, listed companies in the EU are required to submit their annual financial reports in XHTML format. In addition, they will mark up the consolidated financial statements according to IFRS using XBRL tags and iXBRL (Inline Extensible Business Reporting Language) technology. Is your Finance Department ready to produce the report in XBRL format? Is it equipped with a certified solution that can be integrated into the financial and consolidation software used? 

Resources offered by ESMA for XBRL financial reporting  

To prepare the annual reports in Inline XBRL, the European Securities and Markets Authority (ESMA) has developed the ESEF Taxonomy (European Single Electronic Format). As the IFRS rules and taxonomy, on which ESEF is based, evolve, so do the ESEF Regulatory Technical Standards (RTS). 

In December, ESMA updated the ESEF taxonomy compliance standards that allow XBRL software developers to determine whether financial software is capable of detecting and flagging ESEF requirement violations in an instance. These standards reflect: 

• The requirements contained in the June 2020 draft with the update of the ESEF RTS to reflect the updates of the IFRS Taxonomy. 
• The July 2020 ESEF Reporting Manual update. 

In addition, ESMA published on 7 December the “2020 ESEF XBRL Taxonomy” files to facilitate compliance with updated XBRL labeling requirements. This taxonomy will be mandatory for annual financial reports containing Financial Statements for fiscal years beginning on or after 1 January, 2021. However, it may already be adopted for 2020 reporting on a voluntary basis. 

In the webinar “XBRL: How to produce your reports and map your accounts” organized together with EY (Ernst and Young) on 9 July 2020, we discussed the key impacts of the adoption of this new regulation. You can see it HERE.  

Talentia Consolidation & Close: an essential technology resource

The Talentia iXBRL module integrates completely with the financial software of Talentia Consolidation that a company has or acquires. The Consolidation Manager can thus have the complete Talentia Consolidation & Close package as a certified and secure solution. It allows you to manage the consolidation of multiple standards in a collaborative way and easily produce XBRL reports in coordination with the CFO. 

The solution automatically generates the taxonomy or taxonomy extension. With this tool, the data of the consolidated financial statements are converted to iXBRL in a simple way, doing the labeling with just one click. Likewise, the solution detects errors in the document and simplifies the technical validations required by ESMA until the final delivery of the XBRL document.  

This powerful financial software allows you to automate reconciliations and consistency checks. As well as generating real-time reports in Microsoft Word© and XBRL format. The latter in compliance with the new ESEF regulatory standards and latest taxonomy updates. 

The current situation has increased the complexity of financial management. Now, the preparation of consolidated financial statements and reporting are necessary processes that can add a high burden for the Finance Department. However, the use of Talentia Consolidation & Close financial software manages to eliminate that overload by enabling: 

• Accelerating and making the consolidation process more reliable. 
• Automating reporting through iXBRL technology.