ESEF and ESRS - Digital reporting in Europe

There is no getting away from digital transformation, not even when it comes to financial reporting. The European Parliament has issued a directive according to which previously non-standardized, individual and printed annual financial reports must be published in a harmonized electronic format, the ESEF (European Single Electronic Format). Capital market-oriented companies are mandated to digitally tag the main report components of IFRS consolidated financial statements. In addition, some basic information for the respective company is to be included as well as disclosures in the notes and management reports. So far, separate financial statements in local GAAP are also mandatory in some member countries, for example Denmark.

The European Single Electronic Format has become a standard practice for financial reporting in the European Union. Additionally, the European Sustainability Reporting Standards (ESRS) have come into play, further emphasizing the importance of standardization and transparency in public company disclosures.