iXBRL Requirements

We all knew that requirements for companies who report their Financial Statements (DFs) in International Financial Reporting Standards (IFRS) to the U.S. Securities and Exchange Commission (SEC) would eventually arrive (more details here). We also knew that the growing iXBRL chain would also become mandatory at some point. On June 28, 2018, the SEC created a phase-in model for companies and funds who report in USGAAP to begin reporting their DFs in iXBRL. In this article, we will focus on companies who use IFRS reporting and must comply with the SEC requirement that DFs be reported in iXBRL starting as of the end of their fiscal years on June 15, 2021. However, companies who wish to anticipate their iXBRL reporting in IFRS may already do so.

What is iXBRL?

iXBRL stands for InLine XBRL and it is a template that consolidates both human readable (EDGAR/HTML) and computer readable (XBRL/XML) information in a single file. Until the creation of iXBRL, companies had to file their results separately in EDGAR (human readable) and XBRL (machine readable) formats – with this new technology, reports may now be submitted in a single file that integrates both readings.

iXBRL embeds within the HTML format the XBRL tags, which allows financial figures and statements to be read by computers.

A sample of an iXBRL file is available here.

What are the benefits of reporting with InLine XBRL?

Since iXBRL integrates two file formats into one, it will reduce costs and the amount of time needed for the preparation of DFs, which will now undergo only a single revision process due to the cancelation of one of the formats. Financial reporting will be become more reliable and precise as inconsistencies between the HTML and XML files will no longer exist, allowing accounting teams to have full control of how the information will be presented within the HTML format, along with an enhanced document viewing experience for investors who prefer to access the XBRL information within the HTML file.

Originally published by Fernando Fernandes