iXBRL, which stands for Inline eXtensible Business Reporting Language, is an open standard that allows a single document to contain both human-readable and structured, machine-readable data. It was created to facilitate information exchange between businesses and other financial information users such as regulators, investors, and analysts.
iXBRL is viewable in standard internet browsers and embeds “tags” that provide meaning to figures and statements in a computer-readable format. It has no effect on what is reported; only on how it is reported.
Inline XBRL, also known as iXBRL, is an open standard that allows a single document to contain both human-readable and structured, machine-readable data. iXBRL is used by millions of companies worldwide to prepare financial statements in a format that provides the structured data that regulators and analysts require while allowing preparers to retain complete control over the layout and presentation of their reports.
iXBRL takes the HTML standard, which powers the majority of the world’s web pages, and inserts extra “tags” into it to give meaning to figures and statements in a computer-readable format.
The above example is an income statement that has been tagged with iXBRL. Click on the image to use an interactive iXBRL viewer to investigate this statement. The sample demonstrates how structured data can be included in an iXBRL report while maintaining complete control over the statement’s appearance (the sample is based on the income statement on page 240 of this PDF report).
Exploring the tags in the preceding sample will reveal the names of the “concepts” against which the figures are tagged (for example, “IFRS: Revenue”). These are taken from a taxonomy, which is a dictionary of concepts. Because the sample, in this case, is an IFRS report, it has been tagged using the IFRS taxonomy, which was published by the IFRS.
Who uses iXBRL?
iXBRL is in use around the world:
Companies in the United States can file iXBRL with the SEC, such as Delta’s 10-Q filing.
Every year, over two million companies in the United Kingdom file iXBRL with HMRC, the UK tax authority, and Companies House, the business registrar.
Over 9000 publicly traded companies and investment funds in Japan use iXBRL to submit financial statements to the Japan Financial Services Agency (JFSA)
The Danish Business Registrar has collected over 100,000 iXBRL formatted financial statements for registration and market information in Denmark.
ESMA, the European Securities and Markets Authority, has announced that Inline XBRL will be used as the foundation for ESEF, the European Securities and Markets Authority, for mandatory IFRS-based Annual Financial Statements.
Difference Between XBRL and iXBRL?
XBRL and iXBRL are two different formats for structured, electronic business reports that serve different purposes. Both types of reports present tagged data as a set of facts. Each fact assigns a monetary value to a taxonomy concept. A report, for example, might assign the concept “Profit” a monetary value of $1 million. Furthermore, the fact contains contextual information such as the time period to which the fact applies and the units in which it is reported. An iXBRL report is a human-readable report that contains tagged data, whereas an XBRL report only contains tagged data. An iXBRL extractor can extract and convert the tagged data in an iXBRL report into an XBRL report.
Advantages of XBRL Filing
Cuts down on the need for manual data entry As the name implies, manual entries are not only time-consuming but also error-prone. XBRL eliminates the need for manual data entry, freeing up time for data analysis.
longer-Term Cost-Effectiveness Preparing and filing financial statements with SSM is a multi-stage process fraught with complications and expenses. XBRL filing, on the other hand, allows for scalability and cost savings. Furthermore, collaborating with an experienced XBRL conversion service provider can Process That Is Efficient and StreamlinedFinancial report preparation is a highly iterative process.
Disadvantages of XBRL Filing
Inexperienced Users – Not all accountants are fluent in the XBRL language; in fact, some are only familiar with the taxonomy and language. The complexity of XBRL, combined with inexperience, can result in discrepancies in financial data, leading to poor decision-making. However, there is a simple solution: hire an expert XBRL professional or outsource the entire reporting process to a reputable XBRL conversion service provider.
Room for Errors – If you don’t specialize in the language, XBRL taxonomy and tagging can be difficult and error-prone. This is why most businesses outsource their XBRL conversion and report to reputable service providers.
XBRL Reporting Made Easy: The advantages are numerous, but the complexities of XBRL filing and reporting can be daunting. However, with a global leader in regulatory compliance software and a service partner like DataTracks, you can put all of your filings and reporting concerns to rest. DataTracks prides itself on quality management and error-free reporting, thanks to a dedicated and highly experienced team of financial experts specializing in SSM taxonomy and Malaysian accounting standards.