ESMA Releases 2025 ESEF Taxonomy to Support IFRS 18 Transition

ESEF XBRL Taxonomy 2025 has been released by the European Securities and Markets Authority (ESMA), introducing alignment with IFRS 18 and key updates for issuers preparing 2026 IFRS consolidated financial statements. The ESEF XBRL Taxonomy 2025 marks a significant step toward the future structure of financial reporting in the EU while maintaining compatibility with existing IAS 1 frameworks.

This update is particularly significant as it introduces alignment with IFRS 18, marking an important step toward the future structure of financial reporting in the EU.

Key Highlights

1. Release of 2025 ESEF XBRL taxonomy files and updated Conformance Suite
2. Inclusion of IFRS 18, effective 1 January 2027 (early adoption permitted)
3. Inclusion of IFRS 19 to support simplified reporting for eligible subsidiaries
4. Taxonomy architecture supports both:
   • IAS 1 (current reporting structure)
   • IFRS 18-aligned reporting structures
5. Introduction of Calculations 1.1 specification, improving validation of totals, subtotals, and cross-period relationships
6. Designed to support early familiarisation and a smoother transition to IFRS 18
7. Consistent with the IFRS Foundation’s current plan not to release a 2026 IFRS taxonomy update
8. Updated ESEF Reporting Manual providing additional implementation guidance

Why This Matters

This update provides a structured foundation for transitioning toward IFRS 18 while maintaining compatibility with existing reporting frameworks.

The ability to work across both reporting structures allows companies to:

1. Gradually transition to IFRS 18
2. Test and validate reporting structures in advance
3. Align internal processes ahead of mandatory adoption

Additionally, relative taxonomy stability through 2026 offers a valuable window for firms to prepare without frequent regulatory disruption.

Supporting guidance from the IFRS Foundation confirms that the 2025 IFRS Taxonomy will continue to be used for 2026 reporting, reinforcing a period of stability as organizations prepare for IFRS 18 adoption.

Use of IFRS 18-related elements in live filings remains subject to EU endorsement of the standard.

Ez-XBRL: Product, Services, and Capabilities

As ESEF reporting evolves alongside IFRS 18, organizations need solutions that support flexibility, accuracy, and a smooth transition between reporting structures.

Ez-XBRL enables this through:

Integix — Inline XBRL preparation within your existing workflow

1. Convert financial statements (Excel, Word, PDF) into Inline XBRL
2. Support tagging aligned with both current IAS 1-based reporting and future IFRS 18 structures
3. Identify and resolve validation issues before submission
4. Generate ESEF-compliant reports while maintaining consistency across periods

XOR — Structured review and approval workflows

1. Review reports in a clear, human-readable format
2. Validate taxonomy tagging and completeness
3. Maintain audit trails and track changes
4. Support controlled approvals before submission

Additionally, Ez-XBRL supports:

1. Parallel taxonomy readiness, enabling firms to prepare for IFRS 18 while continuing current reporting
2. A smooth transition across evolving ESEF requirements without disrupting existing workflows

Flexible Engagement Models

Ez-XBRL supports different levels of involvement depending on your team’s readiness:

1. Self-Service: Your team prepares and manages tagging using the platform
2. Managed Services: Ez-XBRL prepares reports, with your team reviewing and approving
3. Hybrid Model: Shared responsibility with flexibility to transition over time

Across all models, organizations benefit from a secure, scalable infrastructure (ISO 27001:2022) and a delivery approach proven across the EU, UK, US, India, and South Africa.

If this update is relevant to your organization, let’s connect.

Book a demo to explore how Ez-XBRL can support your ESEF and IFRS reporting requirements.