ESMA postpones to 2024 the annual IFRS amendment of the ESEF

ESMA has announced the postponement of the annual amendment of the ESEF RTS to 2024.
This is partly due to the limited changes in the 2023 update to the IFRS Taxonomy. The decision has been made to enhance monitoring of ESEF implementation, assess how to improve digital reporting, and develop the ESEF sustainability taxonomy and requirements. During 2023, ESMA will engage in preparatory work to develop the ESEF sustainability reporting taxonomy and related reporting requirements based on the ESRS Taxonomy, which is being developed by EFRAG. ESMA will also increase monitoring of the ESEF requirements implementation throughout 2023 and assess potential improvements to the electronic reporting process.
Issuers will still be able to fulfill their regulatory obligations to mark up their 2023 IFRS consolidated financial statements as the 2022 ESEF Taxonomy is mandatory and applicable for financial years beginning on or after 1 January 2023. For foreign-listed issuers, the US SEC allows the preparation of 2023 financial statements in accordance with the 2023 and 2022 IFRS Taxonomies.
ESMA updates the ESEF RTS to reflect the annual update of the IFRS Taxonomy. The 2023 IFRS Taxonomy update contains limited changes reflecting narrow-scope amendments to two standards (IFRS 16 and IAS 1), which are not mandatorily applicable in 2023, general improvements to the taxonomy or common practices from reporting entities, which do not stem from the standards. ESMA will continue to engage with the IFRS Foundation for the 2024 update of the IFRS Taxonomy and will combine both the 2023 and 2024 IFRS Taxonomy updates in its proposals to update the ESEF RTS in 2024.
During 2023, ESMA will publish the annual update of the ESEF Reporting Manual to provide additional guidance on the implementation of the ESEF requirements. The annual update of the ESEF Reporting Manual will also cover how the elements included in the 2023 IFRS Taxonomy update can still be used on a voluntary basis by using other mechanisms, such as extensions.