The shift toiXBRLhas started

The iXBRL Upgrade

Since 2011, XBRL (eXtensible Business Reporting Language) has been the mode for exchanging financial information. In 2018, however, the Securities and Exchange Commission (SEC) prioritized development of a new global standard to increase efficiency, save money and improve data integrity and accuracy. This led to the introduction of Inline eXtensible Business Reporting Language, or iXBRL.

Inline XBRL, or iXBRL, has been a leap forward to reimagining the traditional approach to financial reporting. It streamlines the process from variance in reporting to a consistent, dynamic digital filetype, making the data consistent for people — and computers — to understand.

In June 2018, the SEC formally adopted iXBRL for tagged data to standardize how financial data would be labeled. It was adopted in Release No. 33-10514. The core concept is associating key data points in a company’s financial report to an accounting principal (U.S. GAAP or IFRS). For example, a company’s line item for Cash and Cash Equivalents can now be directly tied to an accounting principal that will further define what exactly Cash and Cash Equivalents is and be embedded directly in the HTML file, no longer requiring 2 separate documents to get this information.

XBRL mandate

June
2019

LARGE ACCELERATED FILERS

June
2020

ACCELERATED FILERS

June
2021

ALL OTHER FILERS

The SEC’S recent fast act rule requires you to tag data and new content in iXBRL. So, what data points must be tagged in iXBRL documents? The short answer is pretty much all of them:

  • Financial statements and associated notes to the financial statements
  • Cover pages to Quarterly, Annual and 8-K documents
  • Financials statement schedules and associated data

Efficiency

Automates the process digitally, reducing risks of multiple document proofing

Usability

Goes beyond the function of data points to integrated financial reporting

Transparency

Enhances trustworthiness of data points, facilitating audience research

Accessibility

Interconnects iXBRL with financial documents, extending readership of reports.

How will you make sure your team is ready?

Will you view iXBRL as an obligation or an opportunity? What technology will you use for your iXBRL process? How will you use your message, data and design to communicate a story?