iXPRL
iXPRL, or Inline XBRL, is a format that embeds machine-readable XBRL tags within the HTML of an XBRL report. The tags are used to group financial concepts into taxonomies, which help to ensure consistency and provide better comparisons of companies’ financial statements. This allows investors, lenders and other stakeholders to better understand companies’ financial information.
Inline XBRL is being used by more and more companies as a way to create financial statements that are more human-readable. It cuts out the need for manual processes and ensures consistency across the financial reporting process. Presenting financial statements in XBRL also meets the requirements of regulators and lenders. It can also enhance a company’s profile. In the U.S., the Securities and Exchange Commission (SEC) requires companies to file financial statements in iXPRL format. In the United Kingdom, iXPRL is mandated for corporate filings and accounts. iXPRL is also mandated for corporate filings in Denmark and Japan.
A valid iXPRL report can be loaded into any compliant processor, allowing for sophisticated searches and queries. This also enables companies to access and consume financial information in their databases. Companies can also use iXBRL reports to create new reports. This reduces the regulatory burdens on registrants.
The Securities Exchange Act of 1934 was passed in response to the 1929 stock market crash and focused on greater transparency. The Act required publicly traded companies to make their financial information publicly available. This was accomplished by creating the EDGAR system. Today, all financial information is available digitally through this system. XBRL is an extension of the EDGAR system that provides a structured format for presenting and analyzing business data. This format has been adopted by regulators, stock exchanges, and tax-filing agencies. Presenting financial statements in XBRL will improve business relations, reduce regulatory burdens on registrants, and increase usability of financial statement information.
As a result of the adoption of XBRL, consumers of financial information have grown more comfortable with obtaining financial information through EDGAR and other financial reporting tools. Presenting financial statements in XBRL meets requirements of regulators and lenders and enhances a company’s profile. It also improves the usability of financial statement information and helps companies to avoid re-keying financial data. It also increases the usability of financial statement information by allowing people to consume information through screens and browsers. This allows users to read financial statements without requiring a reader or scanner.
Inline XBRL, or iXBRL, was introduced in June 2016, with the first submissions being prepared by Workiva. It was later announced that SEC would require companies to file financial statements in iXBRL. Companies filing financial statements in iXBRL must follow the IFRS taxonomy. This includes entities, items, and Tuples. Items are single value facts, while Tuples are multiple value facts.
Companies House and HMRC have accepted iXPRL filings. Over two million companies file iXBRL to HMRC annually. For more information, companies can visit the XBRL UK website, which provides general information on XBRL, and technical guidance on iXBRL. There are also conformance suites available for testing processors. Companies can also consult their accountants or software providers about iXBRL tagging.
