ESMA updates ESEF taxonomy ahead of IFRS 18 transition
The European Securities and Markets Authority (ESMA) has published the 2025 European Single Electronic Format (ESEF) XBRL taxonomy, giving filers greater clarity on exactly what reporting is going to look like as these IFRS reforms come on stream.
Released on 21 April alongside an updated ESEF Conformance Suite, the package is intended to support preparation of 2026 IFRS consolidated financial statements with the latest XBRL-driven digital reporting framework.
The new taxonomy support’s IFRS 18 Presentation and Disclosure in Financial Statements, which becomes mandatory from 1 January 2027 but allows for early adoption. To manage the transition, ESMA has included two entry points in the taxonomy, enabling issuers to report under either the current IAS 1 standard or the new IFRS 18 framework. This dual approach is designed to help companies phase in the new requirements gradually.
Just as notable is what is not changing. ESMA has confirmed that it does not intend to update the ESEF Regulatory Technical Standards (RTS) or taxonomy in 2026, following the IFRS Foundation’s decision to pause its own taxonomy updates. The result is a period of relative stability in reporting; something many preparers and software vendors will welcome as they plan for IFRS 18 implementation.
Access the taxonomy package and submit any questions to ESMA here.
