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    Our iXBRL Services?

    In iXBRL Services we utilizes an iXBRL (Inline XBRL)  which is  a filing format that combines the aesthetic advantages of a machine-readable XBRL instance document file with the aesthetic benefits of a human-readable HTML file.

    IXBRL data can be incorporated in an HTML file using the iXBRL (inline XBRL) file format, making it both machine and human readable. It was created by XBRL International to comply with the demands of the UK’s HMRC and is essentially an xHTML file that contains XBRL tags. 

    Financial statements can be produced using iXBRL while preserving the original document’s appearance. Any text editor, including Notepad on Windows and Text Edit on MacOS, may open iXBRL files.

    As a result, a combined file containing both the conventional financial statements and the XBRL tagging information is submitted to a regulator and made public through the Electronic Data Gathering, Analysis and Retrieval (EDGAR) program. 

    The text of the standard HTML document is “in line” with the XBRL tags. In essence, iXBRL gives filers the ability to create financial reports that have the aesthetic appeal of a typical financial statement and all of the rich, machine-readable XBRL data hidden behind the text.

    An overview of iXBRL past

    The Great Depression is essentially where the history of iXBRL begins. The Securities Exchange Act of 1934 was established by the SEC in response to the 1929 stock market disaster. The act aimed to increase openness and accountability by mandating that publicly traded corporations release specific financial data to the public. 

    These days, the public may access all of that information digitally thanks to the EDGAR system. A business reporting language called XBRL was developed in 1998. Since 2009, the SEC has required that all periodic and interim financial reporting be delivered in the XBRL format. 

    The SEC began accepting voluntary XBRL submissions in 2005. Ten years later, in 2018, the SEC started gradually introducing the requirement that filings be made in iXBRL

    All US-GAAP and IFRS filers must now submit their annual Form 10-K and quarterly Form 10-Qs in iXBRL format as of June 15, 2021. The European Union and other international markets have started down a similar path toward requiring filing in iXBRL format.

    File Format iXBRL

    XBRL material is wrapped in the xHTML file format, which uses XML elements, inside the iXBRL. It is the root element of iXBRL files, just as XBRL. The XHTML format displays its content as a mash up of many document kinds and modules. 

    All XHTML documents adhere to the XML document standards and are based on the XML file format. The XML Document Object Model (DOM) or the dependent HTML Document Object Model (DOM) are both operationally used with XHTML. IXBRL adheres to the requirements of the xHTML file format for external use.

    How does iXBRL function?

    xHTML (extensible HyperText Markup Language), which extends standard HTML by adding a layer of machine-readable metadata, makes iXBRL possible. 

    The majority of modern web pages are created using xHTML, which separates the basic text, colors, and images that we view from the metadata that Google and other search engines use to immediately read, decipher, and rank the page. To put XBRL tags “in line” (in the metadata layer) with the visible text, iXBRL uses xHTML. 

    In the same document, iXBRL gives both human and machine readers the information they need, similar to a contemporary web page.

    What is the creation and filing procedure?

    It is now considered best practice in the US to complete your iXBRL tagging concurrently with the drafting or preparation of your financial statements. This is known as true in-line tagging, as opposed to post-drafting tagging. This applies to all quarterly 10-Q forms, the annual 10-K form, and any interim 8-K forms.

    What are the advantages?

    The key advantages are

    Making financial data machine readable:

    Financial data can now be consumed by data analytics tools much more easily. The financial numbers are effectively barcoded by tags, allowing computers and analytics tools to quickly ingest this data for comparison and analysis.

    Making financial information more accessible:

    People are increasingly using data analytics tools to digest and condense the insights they’re searching for and are no longer reading financial statements from cover to cover as frequently as they once did. It eventually makes financial information easier for anyone to consume and use, including investors, analysts, and others, by making it more machine-readable.

    Improving financial reporting consistency:

    Filings must adhere to either the US-GAAP taxonomy or the IFRS taxonomy. This thorough, standards-based tagging promotes consistency and allows for more accurate comparisons across and within organizations’ financial accounts

    Granting businesses greater choice over how they present their narrative:

    In the past, analysts and journalists have been responsible for giving the public with their interpretations, comparisons, and other insights of companies’ financial information after reading the full-text statements. 

    Using standard tags that allow the audience to directly interpret and compare financial information, This enables businesses to directly share their financial narrative to the public. Finally, combines all of the advantages of the software with the speed and ease of producing and submitting a single document. 

    Before Inline iXBRL, filers first created their customary PDF or HTML document, and then they produced an independent document.

    Fundamental ideas

    The sole goa is to automate the handling of financial data by adding computer-readable tags to company reports. Otherwise, it shouldn’t alter the style or content of corporate business reports. According to accounting standards, business legislation, etc., that is still decided by each individual organization.

    Readers of iXBRL-documents are business reports are not need to be familiar with tags. They could notice certain adjustments to the software’s user interface, but the tags’ production will be concealed.

    Small businesses without accounting software and simple accounts

    Most small, unrepresented businesses with fairly simple financial affairs can use HMRC’s free Corporation Tax online service to submit their Company Tax Returns online. It has carefully designed templates for accounts and computations that, when used, will guarantee that data is submitted in the appropriate format.

    Small businesses can enter their financial data only once thanks to an optional joint filing service offered by HMRC and Companies House. The service allows users to send complete or micro entity accounts, along with an abbreviated version, to Companies House and HMRC through the Internet as part of the Company Tax Return. A company won’t be able to use it if its financial reports include information that isn’t covered by the template.

    Whatever service or software a company chooses, it must first register in order to use the HMRC Corporation Tax Online Service to file its returns online. Companies are advised to allow up to seven days for the delivery of an activation code that will be posted out.

    Businesses that produce final accounts and prepare taxes using software

    In order to ensure that the solution being given fits their needs and enables them to generate a completely compliant Company Tax Return, businesses should speak with their commercial software provider or supplier. 

    A list of software vendors that have successfully tested their products with HMRC and supplied proof that they have created software or overseen a service (or both) that can generate one or more components of a Company Tax Return is published by HMRC. 

    Inclusion on the list does not suggest that HMRC has made any judgments about the software’s overall quality; rather, it just shows that the program satisfies some fundamental requirements, like creating technically sound iXBRL output. 

    Businesses and accountants should think about the procedures to use if accounts and tax computations are made at various periods, maybe by various people or businesses. It may make sense to ensure that accounts and computations are produced in it when first completed rather than attempting to convert them at a later time because both must finally be submitted in that format.

     However, businesses and accountants must decide which procedures to implement in light of their own circumstances. Companies are in charge of making sure they adhere to statutory filing obligations, as will be covered below.

    Companies using manual techniques to create accounts or computations

    Large businesses, among others, may use Excel, Word, or other text-based software to compile their accounts and other reports. These businesses have the option to incorporate final accounts preparation software into their operations. They also have the following two options for formatting their data in iXBRL:

    To convert data from Excel or other similar programs into iXBRL, use conversion software. It will take some physical labor to locate and apply the proper tags. Depending on the software selected, the level of work and the nature of the activity will change. 

    There are numerous conversion products on the market. Company accountants or other professionals might be able to provide guidance on the benefits of relevant software. Some conversion software is marked as “recognized” on the HMRC website. 

    Software may enable the creation of templates that will allow tagging to be utilized for subsequent reports, making conversion, once completed for an initial report, simple going forward. It might be possible in some circumstances to use the same template across a variety of subsidiaries. Entrust a third party with the conversion of reports into iXBRL

    These take regular accounting records, convert them to iXBRL, and then add tags.

    Corporate obligations for iXBRL filing

    A corporation is in charge of making sure that it adequately complies with iXBRL filing standards. Companies who are utilizing tax preparation or final accounts production software to submit iXBRL files should make sure that the software is capable of handling the variety and volume of data in such reports. On this matter, they might want to speak with their software vendors or accountants.

    Companies are responsible for ensuring that any iXBRL-formatted accounts and/or computations they produce utilizing external managed tagging services may be integrated with the online CT600 return form for submission. 

    Companies that internally convert their accounts and calculations data into iXBRL using conversion software are in charge of ensuring that this complies with HMRC’s online filing standards. They might want to discuss their procedures with their accountants or auditors

    Examining iXBRL report data

    Companies are in charge of ensuring that both the tags and the accounting information in their reports are accurate. HMRC defines “properly tagged” as all items in the accounts, calculation, or detailed profit and loss account that have a corresponding tag in the taxonomy being tagged, and that the proper tag has been applied for each item with the proper facts, contexts, and units.

    Conversion software must to offer an easy way to examine tags. The specific mechanism will vary depending on the application.

    Companies should also discuss the level of assurance and checking that auditors can provide on data tagging with them.

    For those designing software for this purpose or converting accounts into iXBRL, other resources, such as the technical guidelines on the XBRL UK website, will provide additional in-depth information.

    Who utilizes iXBRL?

    Over two million enterprises in the UK submit iXBRL annually to Companies House, the business registrar, and HMRC, the country’s tax department.

    The law mandates that, starting on 1 April 2011, the majority of businesses must submit their Company Tax Returns, including financial accounts and computations, in iXBRL for accounting periods beginning after 31 March 2010.

    HMRC and Companies House announced a shared strategy for the online filing of company accounts on September 1, 2009, making it possible for both organizations to receive accounts in iXBRL format. In October 2010, HMRC and Companies House launched a combined filing service for company accounts. Most small businesses with very simple financial affairs can use the service to submit their company accounts online to both organizations using a “one stop” internet facility.

    iXBRL versus XBRL

    Based on the following criteria, XBRL and iXBRL can be contrasted:

    • Complication 
    • Formatting choices
    • File Formats & Extensions
    • Drawing Option
    • Filing Method

    The following table illustrates these differences.

    PARAMETER

    XBRL

    iXBRL

    Complexity

    More complex than iXBRL

    Less complex due to the existing organization scheme of XHTML

    Formatting Options

    Limited Flexibility

    High Flexibility For Contents Formatting

    File Types/Extension

    Formally Saved With .Xml Extension

    Usually Saved As .Html Or .Xhtml Extension

    Rendering Options

    XBRL Viewers Required To View This

    Human Readable Contents That Can Be Viewed In Browsers

    Filing Process

    XBRL (Machine-Readable) And Html (Human Readable) Instance Documents To Be Filed Separately

    Both Human Readable As Well As Machine-Readable Formats Are Available In A Single Instance Document

    How can we help you?

    At interface accountancy, we have a dedicated in-house iXBRL team and a reputable software supplier to work with us to offer our clients a more cost-effective alternative. Our team is highly trained and experienced in iXBRL tagging and can help individual companies as well as large groups of companies to meet their tagging obligations. Our qualified CPA and ACCA accountants will prepare iXBRL-formatted statements from your original documents.

    • Delivered by a fully in-house iXBRL team.
    • Quality checked and reviewed by our iXBRL Senior Manager.
    • Timely turnaround and end report provided to you.
    • No need to buy new software or train your staff.
    • Advice on longer term iXBRL compliance.
    • Excellent value for money and highly competitive pricing.
    • Experience in iXBRL tagging for large groups of companies.
    iXBRL

    What you get ?

    Many businesses are finding that the cost of converting their accounts to iXBRL format is staggering using their current tax advisers or in-house accounts team, especially if their  accounts are produced in Word or Excel format. 

    Buying software and making assessments for your iXBRL tagging require much more time and effort so by outsourcing you don’t need to involve in all those complications. You can sit back and relax and Interface Accountancy will take your pain away