XBRL & ESMA

EFFAS is also represented in both ESMA and XBRL.

ESMA, the European Securities and Markets Authority, is an independent EU Authority that contributes to safeguarding the stability of the European Union’s financial system by enhancing the protection of investors and promoting stable and orderly financial markets.

XBRL aims to improve the accountability and transparency of business performance globally, by providing the open data exchange standard for business reporting (ESEF).

ESMA has published end of December 2016 this ESEF feedback statement setting out the digital format which issuers in the European Union must use to report their company information from 1 January 2020. It concludes that Inline XBRL is the most suitable technology to meet the EU requirement for issuers to report their annual financial reports in a single electronic format because it enables both machine and human readability in one document.

Our relationship with ESMA & XBRL

EFFAS is represented on the XBRL Board and in the ESMA Consultative Working Group for the Corporate Reporting Standing Committee, where it defends the interests of European users and financial analysts. Important steps have been taken since 2017 to ensure a smooth transition to the European Single Electronic Format, which was implemented in 2020.

This digital format enables users, including investors, analysts and auditors, to perform software-supported analysis and comparison of large volumes of financial information. Access to annual financial reports is essential for professional and retail investors alike and is key to creating robust capital markets across the EU.

Financial reports are crucial for a full understanding of a company’s situation and moving to electronic reporting will facilitate analysis, comparability and accessibility of issuers’ financial statements.

We believe that the vast pool of free, structured financial information that will emerge once electronic reporting starts will trigger technological innovation. The Inline XBRL format has the potential to bring financial reporting into the digital age.

Steven Maijoor, ESMA Chair

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