Visma Connect is a global leader in standard business and environmental, social and governance (ESG) reporting. As a forward-thinking organisation, Visma Connect recognises the immense value of data in today's world and is committed to using standard business reporting and taxonomies to stay ahead of the curve. With XBRL as the preferred language for exchanging information between companies and regulatory bodies, Visma Connect is well-positioned to meet the growing demand for structured sustainability data exchange through cutting-edge technologies.
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Recently, Visma Connect attended the XBRL Europe 2023 Conference in Rome. This blog summarises key trends, insights, and takeaways from the XBRL Europe 2023 Conference, focusing on Sustainability Reporting, Finance Reporting and ESAP.
The future of sustainability reporting is poised for significant developments as businesses increasingly recognise the importance of ESG factors.
At the XBRL Europe 2023 conference, much of the discussion was around the European Sustainability Reporting Standards (ESRS) and how it is emerging as a standard that eases the exchange of ESG data. The initial blueprint of the ESRS taxonomy has been deliberated in EFRAG to provide a consistent structure for ESG reporting. Richard Bössen and Andrea Giannini from EFRAG mentioned that reporting obligations under ESRS have been structured in 12 distinct parts, which are mirrored in the taxonomy, reflecting the commitment to a standardised and detailed ESG reporting mechanism. Additionally, the taxonomy is being designed to contain 'typed dimensions' to capture entity-specific disclosure and parent disclosure concepts and to limit the need for extensions to provide more granularity in the data.
During the event, we also observed talks about how the European Financial Reporting Advisory Group (EFRAG) is working on incorporating the requirements of Article 8 of the Taxonomy Regulation into its taxonomy to help prevent greenwashing. Article 8 of the Taxonomy Regulation applies to financial and non-financial undertakings that must include a non-financial statement in their management report under Directive 2014/95/EU. It pertains to how large public-interest entities disclose their alignment with environmentally sustainable economic activities.
Owen Jones from the International Sustainability Standards Board (ISSB) mentioned that International Financial Reporting Standards (IFRS) sustainability disclosure standards S1 and S2 are expected to be released for review in June 2023. IFRS S1 and S2 are the first two IFRS Sustainability Disclosure Standards developed by the ISSB as a global baseline for sustainability-related disclosures.
As we have observed throughout the years, financial reporting will likely continue undergoing significant transformations as technology advances, regulations evolve, and stakeholder expectations shift. There were two key observations we took away from the XBRL Europe 2023 conference:
The European Single Electronic Format (ESEF) is a standard for exchanging finance data. The European Securities and Markets Authority (ESMA) mentioned that no new taxonomy updates for ESEF reporting are expected this year, meaning no changes will be incorporated from the 2023 IFRS taxonomy into ESEF reporting this year.
The ESEF Reporting Manual, which guides companies in ESEF compliance to prepare annual financial reports, is due for an update. The new version is expected before the summer and is intended for the fiscal year 2023. It's unclear whether the updated ESEF Reporting Manual will address the issues related to granular block tagging, a complex and often ambiguous aspect of data tagging in financial reporting, so we will have to wait and see until its release.
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Petr Wagner from the European Commission mentioned that ESAP (European Single Access Point) is expected to become the central hub for requesting annual reports from all listed institutions in Europe, with the launch planned for the end of 2024. Accessing and requesting information from ESAP will be free, ensuring anyone can gain insights from the disclosed data without incurring charges.
Would you like to know more? Join our upcoming webinar Accelerating Digital Reporting, where we dive deeper into the key trends, insights and takeaways we obtained from the XBRL Europe 2023 conference in Rome.
Join Visma Connect Taxonomy Development Lead Sander 't Hoen, and Senior Product Owner Praveen Dara as they discuss the trends and developments in Supervisory Reporting, the Impact of digitalisation on authorities who receive business reports in XBRL format and how Visma Connect can support authorities in standardised reporting.
Don't miss out! Sign up for the webinar here.