5 Things You Should Know About iXBRL
There is a growing need to find the appropriate instruments for flawless and quality financial reporting which can improve transparency among financial data users and easier decision-making processes within the financial departments. Managers, investors, analysts and financial institutions make decisions based on the financial statements making the reliability and accuracy of these financial statements a crucial element for organisations. Using iXBRL, the accuracy of the financial reports facilitates a company’s overall financial organisational processes.
- What is XBRL/iXBRL?
XBRL is an electronic communication language for business and financial data. Through XBRL companies can prepare, analyse and communicate business or financial information. XBRL stands for eXtensible Business Reporting Language and it is part of the “XML” (Extensible Markup Language) languages. iXBRL is a recent version of XBRL allowing financial information to be presented in a normal document format with XBRL tags embedded in the soft copy of the document.
- What are the benefits of iXBRL?
iXBRL provides numerous benefits to businesses. One major advantage is represented by the streamlined process of distributing the data across different departments and business units within an organisation. Another benefit is the ease of using and exchanging information on finance applications. Businesses also have the possibility to have a better interaction with banks in the case of a loan application and request of financial information.
- Is the submission of iXBRL financial statements mandatory?
Yes, the submission of iXBRL financial statements is obligatory by Revenue since October 2013 for companies in the Revenue Large Cases Division and since October 2014 for other Companies who do not meet all of the current exemption criteria (€8.8m turnover, €4.4m balance sheet, 50 employees).
Starting 1st October 2015 it is anticipated that all companies will be obliged to submit iXBRL financial statements although Revenue still have to issue details in this regard.
Phase 1: 1st of October 2013 – Large Case Division (150 sets of accounts received)
Phase 2: 1st of October 2014 – Thousands of companies based on exceeding certain thresholds
Phase 3: 1st of October 2015 (Anticipated) – All companies
- Will I be penalised for non compliance?
Companies that have problems filing using iXBRL will not be penalised, if they for good reasons, have failed to wholly complete the task.
- Should I outsource my iXBRL submission and tagging processes?
If you do not have the necessary software in place nor the resources to properly tag and submit iXBRL financial statements you are better off outsourcing this to specialists. The extent of knowledge a taxpayer or practitioner will need about iXBRL will depend on the choice of approach taken to preparing iXBRL financial statements. That choice is between manual tagging and iXBRL-enabled accounts preparation software (from the website).
We at Ormsby & Rhodes are fully up to date and proficient with iXBRL tagging and submitting. It is a service that we also offer to other practitioners who wish to outsource their Corporation Tax or Income Tax submissions in iXBRL format. For more information please get in touch with us and we will advise you accordingly.