The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator, has published the 2025 European Single Electronic Format (ESEF) XBRL taxonomy files along with an updated Conformance Suite. The release is designed to assist issuers and software vendors in preparing 2026 IFRS consolidated financial statements using the most current digital reporting standards.
A significant feature of the 2025 taxonomy is the integration of IFRS 18 (Presentation and Disclosure in Financial Statements). Although IFRS 18 is officially effective from 1 January 2027, early application is permitted. To accommodate this, the new ESEF taxonomy provides two entry points, allowing issuers to choose between reporting under the existing IAS 1 framework or the new IFRS 18 structure.
ESMA stated that this dual-entry approach is intended to facilitate a prompt understanding of the new financial statement structures, encourage early preparation, and mitigate implementation risks for European firms.
In a move to provide greater regulatory stability, ESMA confirmed it does not plan to amend the ESEF Regulatory Technical Standards (RTS) or taxonomy in 2026. This decision aligns with the IFRS Foundation’s choice not to issue a 2026 Accounting Taxonomy update, giving organisations additional time to finalise their digital reporting processes.
Issuers and software providers are encouraged to consult the IFRS Foundation’s guidance when preparing for the 2026 reporting period. ESMA has also opened a channel for stakeholders to provide feedback or raise technical questions regarding the new files.
