ESMA, the EU's financial markets regulator, updated the ESEF RTS to include the 2025 IFRS taxonomy. This update incorporates new IFRS standards like IFRS 18 and IFRS 19. IFRS 18, replacing IAS 1, will be effective from January 1, 2027, with early adoption allowed. ESMA is including both the existing and new taxonomies to facilitate a smooth transition. IFRS 19 is also included to digitalize reporting for non-listed subsidiaries. This approach allows issuers to test the new taxonomy before it becomes mandatory. The 2025 taxonomy will be mandatory for reports starting on or after January 1, 2026. Issuers can voluntarily use it for 2025 reports. Taxonomy elements for IFRS 18 and 19 can only be used once the standards are formally endorsed. The draft RTS has been submitted to the European Commission for approval. ESMA will also publish an updated ESEF Reporting Manual in 2025.