XBRL filing refers to the process of submitting financial or other business-related data in the XBRL format. It’s a digital filing system where companies tag their financial reports (such as balance sheets, income statements, etc.) with predefined XBRL tags. These tags define the meaning of the data and allow it to be easily processed, analysed, and compared by computers, regulators, and investors. 

Companies that are publicly listed or subject to regulatory reporting requirements often need to use XBRL for filing their financial reports. In the EU, publicly listed companies are required to file their annual financial reports in iXBRL (an inline version of XBRL) under the ESEF regulation. Large or public companies in also need to report on ESG data in iXBRL as part of the CSRD regulations. 

Reporting in XBRL is required from companies under ESEF and CSRD regulations. Specifically, publicly listed companies in the EU must submit their annual financial statements in iXBRL format under the ESEF regulation. The CSRD regulation extends this requirement to large companies, mandating the disclosure of ESG data in a structured format, often using XBRL/iXBRL. Both regulations aim to standardise reporting and make financial and non-financial data more accessible and comparable across the EU. 

XBRL reporting involves using the XBRL format to create and submit structured financial reports. These reports are machine-readable, making it easier to automate analysis and ensure consistency across financial data. 

Yes, you can open XBRL files with Excel, but it requires an XBRL add-in or specialised software to interpret and display the data in a usable format. 

Yes, all publicly listed companies in the European Economic Area (EEA) must comply with ESEF regulations when submitting their annual financial reports. 

XBRL (eXtensible Business Reporting Language) is a digital format used to structure financial data, making it easier for regulators, investors, and analysts to process and compare reports. 

ESEF (European Single Electronic Format) is a reporting standard introduced by ESMA that requires listed companies to submit their financial statements in a machine-readable format, ensuring accuracy and transparency. 

ESEF primarily applies to financial statements, but some companies must also report on sustainability metrics and other non-financial data under the Corporate Sustainability Reporting Directive (CSRD). 

ESEF improves transparency, ensures financial data is easily accessible, and helps investors compare company reports across different markets. 

The proposed revisions in the Omnibus proposal indicate that no companies will need to report in 2027 for the 2026 fiscal year. The next reporting wave will take place in 2028, covering 2027 data. This wave targets large entities that meet specific criteria. Learn more by reading the full article.

In 2028, large companies that meet certain criteria will be required to report under the CSRD for the 2027 fiscal year. These criteria are having over 1000 employees, €50 million in net turnover, or €25 million in assets. Companies that meet at least two of these criteria will have to provide reports by 2028.

According to the proposed revisions in the Omnibus proposal, no companies will be required to report in 2026 for the fiscal year 2025. The next wave of reporting will occur in 2028, for the 2027 data. This wave affects large entities that meet certain criteria. Discover more by reading the full article.

XBRL (Extensible Business Reporting Language) software is a tool used for the preparation, validation, and filing of financial and sustainability reports in XBRL format. It helps automate the tagging of financial data, ensuring that reports are structured and compliant with regulations such as ESEF (European Single Electronic Format) and CSRD (Corporate Sustainability Reporting Directive). 

To open an XBRL file, you need specialized software designed for handling XBRL reports. Unlike Excel, which isn’t equipped to manage the complex tagging and validation required by XBRL, dedicated XBRL software allows you to view, validate, and edit the content according to regulatory standards. Popular options include XBRL Certified Software™ or platforms designed specifically for financial and sustainability reporting, such as those supporting ESEF or CSRD regulations. 

While XBRL itself is an open standard, the software tools required to generate, tag, and validate XBRL reports are typically not free. Most XBRL software solutions come with subscription or licensing fees based on the features, support, and scale of the solution. Explore the full article to find the best solution for you. 

The cost of XBRL software varies depending on the provider, features, and the scale of your organisation. Entry-level solutions may start at a few hundred euro per month, while more advanced platforms offering comprehensive features, such as integration with ERP systems, can cost several thousand euro annually. 

Yes, XBRL is still used, but most organisations now use Inline XBRL (iXBRL), which is a slight variation of XBRL. While XBRL is a machine-readable format designed for structured data, iXBRL integrates these XBRL tags directly into a human-readable HTML document. This makes reports accessible to both people and automated systems. iXBRL has become the preferred format for regulatory compliance, particularly for ESEF and CSRD reporting, as it combines the benefits of structured data with a format that is easy for humans to read and understand. 

XBRL is machine-readable, while iXBRL embeds these tags into a human-readable format, ensuring reports are accessible to both systems and people. 

XBRL taxonomies define the data structure for reporting. The CSRD taxonomy specifies ESG metrics to ensure consistent and accurate disclosures, while the ESEF taxonomy defines financial metrics that listed companies are required to report.   

The CSRD timeline details the gradual implementation of the Corporate Sustainability Reporting Directive, starting in 2024. Organisations in the first phase are required to report in 2025, covering the financial year ending in 2024. The implementation timeline extends until 2029. 

The Corporate Sustainability Reporting Directive (CSRD) came into force on 5 January 2023. The first wave of reporting launched in 2025, and the next one is scheduled for 2028. 

In 2025, the CSRD will apply to companies previously reporting under the NFRD. These include companies with over 500 employees, a net turnover exceeding €50 million, and assets above €25 million. 

Failure to comply can lead to financial penalties and harm a company’s reputation, as customers, investors, and other stakeholders may lose trust in the company.  

The Omnibus proposal suggested a few revisions, one of them is to exclude listed SMEs from scope of CSRD. However, they might need to report in the future.

The CSRD (Corporate Sustainability Reporting Directive) requires large companies and listed SMEs to disclose detailed sustainability information, covering environmental, social, and governance (ESG) aspects. The SFDR (Sustainable Finance Disclosure Regulation) mandates financial market participants to disclose how they integrate sustainability risks into their investment processes and products. Both regulations are part of the EU’s broader Sustainable Finance Framework. 

According to the original content of CSRD, 50,000 companies had to comply, including approximately 40,000 based in the EU and 10,000 outside of it. With the latest revisions, proposed in Omnibus proposal by European Commission, approximately 6,000 companies will be affected. 

Yes, most of the solutions listed offer integration with ERP system, but this should be checked individually with your provider before implementation. CFOUR is agnostic to any data source, making it the best solution for companies seeking a flexible tool.  

Automated consolidation drastically reduces errors and can cut down processing time by over 50%. With CFOUR, companies report that consolidation time was reduced from 2-5 days to less than 8 hours. If you’re looking for a solution with advanced automation and user-friendly design, CFOUR is your go-to choice.  

Yes, consolidation software can integrate with multiple ERP systems, allowing data consolidation from various sources to create unified financial statements. 

For example, CFOUR provides APIs and pre-built connectors to facilitate seamless data transfer from any data source, with no limit on the number of sources it can integrate. This flexibility enables companies to consolidate financial data across multiple ERPs and other systems, ensuring efficient, accurate, and up-to-date reporting without manual data handling. 

This feature is not always available with any consolidation software provider; however, consolidated software can offer this possibility for smooth integration.  

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