LEI embedded in ESEF boosts Trust
When public companies across Europe begin filing annual financial reports in the digital, machine-readable ESEF format at the start of 2020, alongside introducing iXBRL tagging, they will also begin to embed their Legal Entity Identifier (LEI) within reports.
This week Stephan Wolf, CEO of the Global LEI Foundation (GLEIF), underlined the LEI’s importance for improving trust and transparency in global markets.
Fundamentally, an embedded LEI means that a report consumer can instantly verify the identity of a filing organisation, providing some much-needed trust in the digital environment.
LEI data also includes an up-to-date outline of an entity’s ownership structures, making it quick and simple to establish the relationship between different companies. This heightens transparency, and simplifies the accurate comparison and aggregation of data.
When combined with machine-readable iXBRL tagging within ESEF-compliant annual reports, the result is trustworthy, instantly-available, digitally verifiable data that can be automatically analysed and compared – a significant step in the right direction for Europe’s markets.
Of course, the LEI will continue to grow ever more effective and useful as adoption widens – providing, in turn, a boost for trust and transparency worldwide.
The next steps?
Read more here.