From January 1, 2020, companies listed on a regulated exchange market in the European Economic Area (EEA) had to adopt a new framework for formatting and submitting annual financial statements (AFRs) for financial years beginning on or after that date. Since then, they have been required to use the European Single Electronic Format (ESEF), which assumes that annual reports are produced in the native XHTML web format, and not in the form of a downloadable document, such as a PDF file.
Companies that file annual reports using International Financial Reporting Standards (IFRS) are also required to tag their consolidated financial statements with XBRL tags, as the machine-readable (XBRL) reporting language makes financial statements easy to compare with financial statements of other companies, and this unifies standards across the market.
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