iXBRL or Inline XBRL, is an open standard that enables a single document to provide both human-readable and structured, machine-readable data. iXBRL is used by millions of companies around the world to prepare financial statements in a format that provides the structured data that regulators and analysts require, whilst allowing preparers to retain full control over the layout and presentation of their report.
iXBRL takes the HTML standard that is used to power the world’s web pages, and embeds extra “tags” into it that give meaning to the figures and statements in a format that can be understood by a computer.
Who uses iXBRL?
iXBRL is in use around the world
In the UK, over two million companies file iXBRL each year to HMRC, the UK tax authority, and to Companies House, the business registrar.
ESMA, the European Securities and Markets Authority has announced that Inline XBRL will be used as the standard behind ESEF, for mandatory IFRS based Annual Financial Statement filings of all public companies across Europe, for reporting periods commencing on or after 1 January 2020.
How we use iXBRL
There are to two occasions in which Menzies use iXBRL:
- To online file financial statements to Companies House;
- To online file the financial statements to HMRC, which accompany the corporation tax return and computation.
iXBRL has assisted us as a firm by allowing company financial statements to be filed online in a format that our clients are happy with and that can be easily read by stakeholders. Additionally, it has improved the efficiency of attaching financial statements to the Corporation Tax return and Computation being sent to HMRC.
However, a slight inefficiency is that both Companies House and HMRC usually require slightly different iXBRL documents to be produced.
Contact Menzies Audit & Compliance team
To speak to a partner or for more information about on iXBRL or the audit and compliance services we offer please contact one of the Menzies LLP offices or complete our contact from below.