The FCA has published guidance on the requirement for listed companies to publish accounts in the European Single Electronic Format (ESEF) and the Department for Business, Energy and Industrial Strategy (BEIS) has updated its policy paper on ESEF.
Under DTR 4.1.14, issuers will have to publish their annual reports in the ESEF (see our earlier blog post). The FCA recently confirmed that the ESEF requirements that were due to become effective for financial years beginning on or after 1 January 2020 would instead become effective for financial years beginning on or after 1 January 2021 (see our earlier blog post).
The FCA has published guidance for the preparation of annual reports in European single electronic format.
The guidance says that issuers should have regard to the ESEF reporting manual published by ESMA when preparing their reports in ESEF. It also sets out a small number of specific departures to the approach outlined in ESMA’s manual for UK issuers.
The FCA has confirmed that issuers will be able to voluntarily submit their annual report to the National Storage Mechanism (NSM) in ESEF from January 2021. The FCA’s ESEF webpage contains further information about the process for filing reports in ESEF.
Government guidance on auditor involvement
BEIS has updated its policy paper on ESEF to set out its view on the role of auditors. The Government first published the policy statement in June 2020 to set out its view on directors’ sign-off of accounts (see our earlier blog post).
The updated policy paper confirms that the Government will not require auditors to report on ESEF tagging of accounts at present but will consider this in the context of the recommendations on audit made by Sir Donald Brydon (see our earlier blog post).
The policy paper also notes that companies may wish to obtain assurance in relation to the preparation of accounts in accordance with the ESEF requirements in accordance with the Financial Reporting Council’s new ISAE 3000 standard.