European Securities and Markets Authority (ESMA) 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. It achieves this by: assessing risks to investors, markets and financial stability, completing a single rule book for EU financial markets, promoting supervisory convergence and directly supervising credit rating agencies and trade repositories.
ESMA has recently mandated European Single Electronic Format (ESEF). The ESEF is the electronic reporting format in which issuers on EU regulated markets shall prepare their annual financial reports in XHMTL format, which is human readable and can be opened with any standard web browsers from 1 January 2020. Where AFRs contains IFRS consolidated financial statements, these shall be labelled the XBRL ‘tags’, which make the labelled disclosures structured and machine-readable.
For better understanding, please refer the below mentioned various aspects related to XBRL and ESEF Reporting: