ESMA turns its ESEF spotlight on the statement of changes in equity
The European Securities and Markets Authority (ESMA) has set out its European Common Enforcement Priorities (ECEP) for 2026 annual financial reports. We note that the European Single Electronic Format (ESEF) section concentrates on the statement of changes in equity (SOCE). The SOCE reconciles a company’s opening and closing equity, showing how components moved through profit and loss across the year. ESMA and national enforcers will pay particular attention to a list of common filing errors there, which issuers should read alongside the ESEF Reporting Manual.
The common errors include broad total equity concepts being used where more precise core taxonomy concepts exist. Columns for non-controlling interests or individual reserves are often left untagged, leaving only total equity marked up. Dashes and empty cells get tagged as zeros; opening balances sometimes carry the wrong instant date; and unnecessary extensions are created without first checking the core taxonomy.
ESMA explains that the SOCE is especially prone to error because XBRL calculations cannot validate the full roll-forward, so a wrongly signed movement can slip past automated checks at present. ESMA also reminds issuers that its April 2026 ESEF taxonomy package has a separate entry point for IFRS 18, and that mappings and extensions for it deserve early attention {Ed: We agree! Make sure you can use the correct entry points!}
Elsewhere, the priorities cover geopolitical risk and restructuring in IFRS financial statements, and materiality in sustainability statements. None of the seven cases in ESMA’s latest extract from the European Enforcers Coordination Sessions (EECS) database concerns ESEF.
Read the priorities here.
