n the evolving landscape of financial reporting, the transition to XBRL (eXtensible Business Reporting Language) has become a key focus for listed companies in Europe, driven by the European Securities and Markets Authority's (ESMA) European Single Electronic Format (ESEF) mandate. While this shift presents opportunities for streamlined reporting and enhanced transparency, it also introduces unique challenges.

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Common Challenges in XBRL Implementation

During our implementations of software solutions like Sturnis and Taxxor, we have encountered two primary challenges faced by many companies:

• Difficulty with Block Tagging: Accurately applying block tags in financial statements is a common stumbling block. These tags are essential for structuring reports in XBRL, yet their correct implementation is often challenging, leading to data inaccuracies.
• Hidden Overflows of Visual Elements: Managing the integration of graphical and textual data can result in hidden visual overflows. These overflows are problematic, causing reporting inconsistencies and potential compliance issues, often only discovered at the last stages of report preparation.

These challenges are not unique to any single software tool; they are inherent in the XBRL reporting process itself. It underscores the need for experienced professionals who can navigate these complexities and ensure accurate, compliant reporting.

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Software Solutions for XBRL Creation

A variety of software solutions are available for creating XBRL documents compliant with ESEF requirements. Each offers unique features, but all share common challenges like block tagging and visual overflows. Our experience with various tools, including Sturnis and Taxxor, has equipped us to address these issues effectively.

• CtrlPrint: Offers collaborative, cloud-based solutions for editing and publishing.
• Sturnis: Automates financial and narrative reporting, addressing integrated ESEF reporting needs.
• Workiva: Provides a robust cloud platform for streamlined and compliant reporting processes.
• Taxxor: Features a user-friendly interface with comprehensive XBRL reporting tools.

The Role of Proptechpartners

Selecting the right software from a plethora of options and overcoming technical challenges like block tagging and visual overflows requires expertise. Proptechpartners plays a crucial role in this process. Our hands-on experience in implementing software like Sturnis and Taxxor means we're familiar with these common issues and have developed effective strategies to resolve them. We assist companies in choosing software that aligns with their size, reporting complexity, and budget, while also ensuring these technical challenges are expertly managed.

The move to XBRL reporting under ESEF mandates is a significant step for listed companies in Europe. With the right understanding of key requirements and the guidance of experienced professionals like Proptechpartners, these companies can effectively manage the challenges of XBRL reporting, turning a regulatory requirement into a strategic advantage.

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