ESEF/UKSEF block tagging—the devil is in the details
The 2022/2023 annual reporting season saw the introduction of block tagging in the ESEF/UKSEF electronic reporting format. Something that many regarded straightforward proved to be quite the opposite.
In the first one or two—depending on where the company has its listing(s) in Europe—ESEF/UKEF reporting years, only the consolidated primary financial statements (and general data) needed to be tagged. Block tagging became mandatory for reports over a fiscal year starting on or after January 1, 2022.
Block tagging involves tagging the notes to the consolidated financial statements. As blocks, i.e., not the individual numbers (facts), but blocks of text/content. The consensus among suppliers of tagging solutions (before the reporting season) was that entire notes would be tagged, which would mean tagging 20 to 50 notes as big chunks of content. That was until the auditors appeared on stage.
Block tagging turned out to be much more intricate; notes needed multiple block tags, parts of the same note needed other block tags, the same block tag continued in another note, and even a single table or paragraph could need multiple block tags.
Block tagging thwarted 'bolt-on' solutions
This block tagging reality check thwarted the 'bolt-on' approach that couldn't cope with these added complexities (see our blog post 'Why companies (should) prefer an integrated ESEF/UKSEF solution over a 'bolt-on' solution') and meant extra homework for the suppliers of an integrated solution.
Other suppliers are struggling with user-experience
Tools using a generic word-processing content format struggle with the block tagging user experience. Users quickly get frustrated handling overlapping text selections and constantly checking and adjusting text selections when making updates.
Tangelo proves its adaptivity.
At Tangelo, we could swiftly add the required block tagging functionality, allowing our clients to meet the detailed directives of their auditors. Our native structured content format—the same as the electronic (XML/XBRL) reporting format—was vital to quickly adapting to the new requirements. It also naturally matches the hierarchical structure of block tags, leading to an intuitive and user-friendly way of block tagging in the system.
Tangelo offers an integrated solution to generating the ESEF/UKSEF filing package from the same source as the designed PDF and microsite versions of the annual report. Because of Tangelo's native structured content format—the same as the electronic (XML/XBRL) reporting format—tagging facts and block tagging are intuitive and user-friendly. It also allows companies to produce a browser/web-native and responsive human-readable presentation that adheres to the corporate web style guide and maintains brand consistency.
Blog post 'Embracing ESEF/UKSEF as a web-based format.'
Webinar ‘Building ESEF Reports with Tangelo’ [on demand]