Insights from XBRL Europe’s Experts
This year, Eurofiling and XBRL Europe’s joint annual conference assembled 200 regulatory reporting experts from over 30 countries. With several streams dedicated to academic topics, development research and divulging the latest regulatory news, the three-day conference set up the reporting landscape for the year ahead and beyond.
With a conference so rich in content (all slides available on the website), we’ve whittled this down to the top three takeaways to help you prepare for the next year of reporting.
iXBRL on the European horizon for 2020
ESMA’s presentation dominated the agenda, discussing the new mandate around iXBRL requirements for Annual Financial Reports. Using the new ESEF taxonomy, all publicly listed companies in the EEA who currently submit IFRS consolidated accounts will need to submit these in iXBRL format for financial years beginning on or after January 1st, 2020.
Working groups are already assembled, and ESMA is calling for developers in the market to engage with various workshops and discuss the ESEF taxonomy in full technical detail. In the meantime, it appears that the new taxonomy will be based on IFRS and should be familiar to UK and Irish firms preparing iXBRL for HMRC and Revenue.
The European Commission have an ambitious roadmap ahead to ratify and consult on the final standards, but ESMA is confident that the implementation deadline is very much on track. They are expecting the Regulatory Technical Standard (RTS) to be ratified by the European Commission by the end of this year, with publication in the Official Journal sometime between Q1 and Q2 2019.
Modernising pensions & the impact on financial stability
The European Insurance and Occupational Pensions Authority covered the new Solvency II taxonomy updates, whilst highlighting in more detail the new IORP requirements. The Institutions for Occupational Retirement Provision will modernise the way EIOPA analyses pensions in the EEA, prioritising the impact on financial stability.
Launching in Q3 of 2019, the quarterly and annual filings will impact all IORPs in the European Economic Area, with a few exceptions for smaller schemes.
In line with Solvency II, firms will need to submit to their NCA in XBRL format. The latest version of the IORP taxonomy public working draft is now available, and EIOPA has called for developer feedback. The final IORP taxonomy is due to be published on the 1st November and, although less complex, it is going to follow the insurance taxonomy and validations model. EIOPA has put considerable effort in aligning the two reporting requirements and hopes that the IORP taxonomy will not need amending for the next year and a half.
Streamlined reporting in the FDS’s sights
With all these new regulations on the horizon, it may seem as though the burden of internal reporting burden will only become more and more unmanageable. You are not alone! The European Commission presented on their latest project to tackle this: Financial Data Standardisation (FDS).
The FDS project is investigating the overlaps between 20+ reporting frameworks, with the possibility of making these more efficient and effective. The project spans five key regulatory authorities and covers over 300 legal acts. Some acts, such as MiFID II and CRD IV complement each other, whilst others repeal earlier requirements or exist as amendments to out-of-date standards.
Given this vast scope of 300+ legal acts and five regulatory authorities, the European Commission aims to reduce overlaps between reporting frameworks and highlight possible synergies between existing directives. With a primary objective of keeping monitoring levels at a lower cost to filers, they believe it is feasible to reduce the reporting burden whilst improving efficiency and compliance.
The EC’s update was certainly welcome to filers at a conference debating the introduction of additional reporting requirements. The FDS project is one to watch, and we’ll be bringing you the latest updates throughout the year.
To find out more about the day visit the Eurofiling XBRL Week website, and don’t forget to check the Arkk blog for the latest regulatory reporting news.