The European Securities and Markets Authority (ESMA) has published an amendment to the European Single Electronic Format (ESEF) Regulatory Technical Standard, incorporating the 2025 update of the International Financial Reporting Standards (IFRS) taxonomy.
The revised taxonomy reflects recent changes in international reporting, most notably the introduction of IFRS 18 Presentation and Disclosure in Financial Statements and IFRS 19 Subsidiaries Without Public Accountability. Both standards are currently under EU endorsement, with the process expected to conclude in early 2026.
IFRS 18, which replaces IAS 1 Presentation of Financial Statements, will apply to reporting periods beginning on or after 1 January 2027, though earlier adoption is permitted. To support issuers during the transition, ESMA proposes to include both the current taxonomy for IAS 1 and the new taxonomy for IFRS 18 within the RTS.
The regulator has also incorporated taxonomy for IFRS 19. Although the standard has limited implications for listed companies, it is expected to improve digitalised reporting for non-listed subsidiaries, broadening transparency across the reporting landscape.
The 2025 taxonomy will be mandatory for annual financial reports covering financial years beginning on or after 1 January 2026. Issuers may apply it voluntarily for their 2025 reports if the RTS is adopted in time. Taxonomy elements relating to IFRS 18 and IFRS 19 will only be available once the standards receive formal EU endorsement.
The draft RTS has been submitted to the European Commission for approval. ESMA confirmed it will also issue the annual update of the ESEF Reporting Manual in 2025 to provide further guidance on implementation.
