From January 2020, listed companies across Europe will be required to report their financial statements in the European Single Electronic Format (ESEF). This machine-readable format will make it easier for users to access, analyse and compare financial statements.

A key outstanding question for audit teams is whether there will be a requirement to audit the XBRL reports. Discussions on this point are ongoing with further details expected in June 2019.

In the meantime, auditors of EU listed entities need to:

• read the factsheet produced by Accountancy Europe;
• make sure their clients are aware of the new requirements; and
• look out for further details about the audit requirements.

KPMG specialists are currently working with professional bodies to develop further guidance.