Everything You Need to Know About the Latest RTS for ESEF

The 2025 ESMA ESEF update is set to change how companies across the EU prepare and file annual financial reports. Announced in September 2025, this amendment to the Regulatory Technical Standard (RTS) introduces the 2025 IFRS Taxonomy, shaping the future of iXBRL reporting.

Why does this matter? Because the update introduces the 2025 IFRS Taxonomy, which will soon shape how companies across the EU prepare and file their financial reports in Inline XBRL (iXBRL) format.

Let’s break this down step by step.

First Things First: What Are ESMA, RTS, and ESEF?

Before we dive into the updates, let’s quickly understand these terms:

1. ESMA (European Securities and Markets Authority) is the independent EU authority that safeguards the stability of the financial system by improving investor protection and promoting stable, orderly financial markets. Among other roles, ESMA sets rules for how companies report financial information digitally.
2. RTS (Regulatory Technical Standards) are legally binding rules developed by ESMA to specify how laws should be applied. In this case, the RTS defines the technical details for how annual financial reports should be prepared in digital format.
3. ESEF (European Single Electronic Format) is the standard introduced by the EU for listed companies to prepare their annual financial reports in a uniform digital format, specifically using Inline XBRL (iXBRL). This ensures that reports are not only human-readable but also machine-readable, making data easier to analyze and compare across companies and markets.

In short: ESMA sets the rules (through RTS), and ESEF is the format that companies must use to comply with those rules.

What the 2025 ESMA ESEF Update Means for Companies

The amendment brings the 2025 IFRS Taxonomy into the ESEF RTS. This ensures that annual financial reports remain aligned with the latest International Financial Reporting Standards (IFRS). In simple terms, your digital filings now need to reflect these updated global accounting rules.

The New IFRS Standards Introduced

The 2025 IFRS Taxonomy introduces two important new standards that companies need to be aware of:

1. IFRS 18: Presentation and Disclosure in Financial Statements

Think of IFRS 18 as a major upgrade to how companies present their financial statements. It replaces IAS 1, which has been in place for decades. The goal is to make financial statements clearer, more consistent, and easier to understand for investors and stakeholders.

1. It becomes mandatory from 1 January 2027, but companies are free to apply it earlier if they’re ready.
2. By modernizing the structure and presentation of financial statements, IFRS 18 aims to improve comparability between companies and give stakeholders a more accurate picture of performance.

In short: IFRS 18 is all about improving clarity and transparency in financial reporting.

2. IFRS 19: Subsidiaries Without Public Accountability – Disclosures

Not every company has the same level of reporting needs. That’s where IFRS 19 comes in. It’s designed specifically for subsidiaries that are not publicly listed (meaning they don’t have to report to investors in the same way as listed companies).

1. IFRS 19 introduces a simplified disclosure framework.
2. It allows these subsidiaries to produce financial statements that are lighter and easier to prepare, while still meeting the essential requirements of IFRS.
3. The aim is to reduce reporting burden without compromising on transparency.

In short: IFRS 19 helps non-listed subsidiaries save time and effort while still ensuring quality financial reporting.

Transition Support: No Sudden Shifts

To avoid disruption, ESMA is making the transition smoother by keeping both IAS 1 and IFRS 18 taxonomies available in the RTS for now. This way, issuers and software vendors have time to:

1. Test the new taxonomy,
2. Adjust systems gradually, and
3. Avoid compliance hiccups.
   

The taxonomy for IFRS 19 will also be included so that non-listed subsidiaries can start adopting it into their reporting processes.

Timeline You Need to Know

Here’s the part most companies are watching closely:

1. Mandatory use: The 2025 IFRS Taxonomy will apply to financial years starting on or after 1 January 2026.
2. Optional early adoption: You can voluntarily use the new taxonomy for 2025 reports if the RTS gets adopted in time.
3. Updated guidance: ESMA has promised to release a refreshed ESEF Reporting Manual in 2025, with detailed instructions for issuers.
   

Why This Update Matters for Companies

At first glance, this might look like just another regulatory update. But it’s more than that. It signals the evolution of structured digital reporting across Europe. For companies, it means:

1. Getting ahead of the new IFRS standards (don’t wait until 2027 for IFRS 18).
2. Preparing for dual taxonomy support during the transition period.
3. Testing and fine-tuning iXBRL workflows before the 2026 deadline.
4. Ensuring your systems and processes are flexible enough to keep up with ongoing updates.

Put simply: the earlier you prepare, the easier compliance will be.

How Ez-XBRL Can Help You Navigate This

This is where we come in. At Ez-XBRL, our mission is to make complex regulatory reporting simple and stress-free. Here’s how we support you in light of the latest RTS changes:

1. ESEF-Compliant Reporting Platform: Our solutions are already built to incorporate the latest IFRS taxonomy updates. You don’t need to worry about falling behind.
2. Automation Workflows: Say goodbye to manual tagging and repetitive errors. Our tools streamline the iXBRL process, reducing both time and risk.
3. Future-Ready Technology: Regulations evolve constantly. With Ez-XBRL, your reporting process evolves with them—so you’re always compliant.
4. Expert Support: Our team tracks every ESMA update and helps you implement it in your workflows without the hassle.

With Ez-XBRL, you don’t just stay compliant—you stay ahead.

Final Thoughts

The integration of the 2025 IFRS Taxonomy into the ESEF RTS is more than a compliance requirement—it’s a step toward a more modern, transparent, and digitally aligned reporting future. Companies that start preparing now will be in the best position to adapt seamlessly.

And with Ez-XBRL by your side, you can approach these changes with confidence, efficiency, and peace of mind.

Ready to simplify your ESEF compliance? Request a Demo today and see how we can help your reporting stay future-proof.