FCA has postponed the ESEF mandate by One Year
FCA Pushes Back Mandatory Requirements Related to ESEF by a Year
The FCA (UK Financial Conduct Authority) has set back the mandatory requirements related to the ESEF (European Single Electronic Format) by one year. These ESEF initiatives were supposed to include:-
● Reporting requirements for preparation and filing of machine-readable financial statements.
● Electronic tagging of financial statements as well as the notes to these statements.
These new requirements will enhance the accessibility of issuers’ financial data and make the process of evaluating corporate performance by investors easier and more streamlined. However, before moving onto the changes, let’s understand the ESEF reporting format.
An Introduction to the ESEF
The ESEF is an electronic reporting format through which issuers of the EU regulated markets can prepare their Annual Statements. The primary objective for introducing this format of reporting is to make the submission of annual financial reports easier for issuers in addition to facilitating accessibility, comparability, and analysis by investors and regulators.
The FCA is postponing the implementation of ESEF requirements by one year, which were originally scheduled to commence on or after January 1, 2020. These annual report preparation requirements will now come into effect for financial years starting on or after January 1, 2021. However, the ESEF reporting requirements for tagging of notes of the financial statements will commence as expected, i.e., for financial years on or after January 1, 2022.
Who Does it Affect?
This delay affects:-
● Issuers that have transferable securities admitted to trading on UK regulated markets.
● Issuers considering admission to trading on a UK regulated market.
● Issuers that have admitted their securities to the FCA Official List or are considering to list.
● Firms or individuals investing or dealing in UK-listed securities or securities admitted to trading on the UK regulated market.
● Firms that are providing research and analysis on issuers, accountants, and other advisors.
● Service providers are helping issuers with the preparation and publication of their annual financial statements.
The rules will come into force by the end of this year. However, it is advisable to transition into the ESEF reporting format while it’s still in the voluntary phase. This way, issuers and firms who’ll be required to comply with these requirements can figure out the nooks and crannies of the ESEF reporting format before it’s mandated.
A dependable software solution provider like DataTracks can help issuers and firms get well-versed with the ESEF as well as the reporting requirements being laid down by the FCA. To help them stay on top of their financial reporting, DataTracks is offering a robust solution that allows access, analysis, and comparability of annual reports.
To learn more about the ESEF reporting solution offered by DataTracks, please speak to an expert @ +44 (20)-3608-1300.
Specialists in XBRL and regulatory reports
DataTracks prepares more than 14,000 XBRL statements annually for filing with regulators such as SEC in the United States, HMRC in the United Kingdom, Revenue in Ireland, Eurofiling compliance reports in Europe, ACRA in Singapore and MCA in India. Honed by our experience of preparing more than 185,000 compliance reports, our solutions and services are designed to assure quality, reliability and ease of use.