Who is Required to File IXPRL?

IXPRL (Interactive exchange of Business Reporting Language) is a financial reporting format that is used by public companies and private companies that want to make their financial statements easier to read and understand by investors. iXPRL allows for interactive data tagging, which allows for a file to create an interactive version of their complete financial statements.

Format of Financial Information

XBRL is a format of financial information that uses eXtensible Business Reporting Language to identify and code data. The interactive format will provide investors with greater access to financial information at lower costs, and will also allow investors to download the information into spreadsheets. The Securities and Exchange Commission has issued rules requiring the Complete Meaning of IXPRL for companies to provide interactive financial information. The rules will be phased in over the next three years.

International Reporting Standards

Companies that use IFRS for their financial statements will need to tag the statements using the latest list of international reporting standards. For the first year of tagging, companies will only be required to tag their financial statements and their schedules. For the second year of tagging, all four levels of detail will be required. A company may choose to outsource the tagging process, but the filing entity must still complete the tagging by the due date.

Footnotes & Schedules

During the first year of tagging, footnotes and schedules will be tagged as blocks of text. After one year, these financial statement exhibits will be tagged as more detailed tags.

Hidden Facts in IXPRL

IXPRL can have some challenges when it comes to presenting and reporting data. Some of these challenges are associated with the way facts are tagged. Tagging facts ensures that consumers can easily navigate between different occurrences of the same value. It also helps to create consistency in the values.

Securities & Exchange Commission

The Securities and Exchange Commission (SEC) is constantly updating its reporting regulations. When you prepare an IXPRL report, you should take some steps to ensure the accuracy of the information you’re filing. In addition, XBRL offers a mechanism to tag the accuracy of numeric facts. This includes tagging accuracy for numeric figures, which can be scaled.

Technical Layer of the IXPRL File

Hidden facts in iXBRL are information that can be viewed but cannot be tagged on the face of the document. They are located in the technical layer of the IXPRL file.

To create a hidden fact, the filer must specify the context and location of the fact. This can be an arbitrary location, or a fixed value, like a blank space.

Currently, only some Income Tax filers are required to file iXBRL. For example, filings for an annual 10-K form should be done with iXBRL tagging. In some forms, the requirement is only for the current fiscal period, while for others, it is applicable for the entire year. For iXBRL tagging, the SEC has released a system alert that provides guidance on the requirements.

Fiscal Periods

Large accelerated filers with a calendar fiscal year are required to file iXBRL starting with the Form 10-Q for the quarter ended September 30, 2019. For IFRS and non-accelerated filers, the iXBRL requirement begins with fiscal periods ending after June 15, 2021.

Some operating companies not currently subject to iXBRL requirements may choose to file iXBRL on a voluntary basis. Those companies, however, must ensure that their iXBRL formatted data is compatible with the HMRC online filing system. They should also consult with accountants, auditors, or external managed tagging services to make sure their iXBRL formatted data can be incorporated with the online CT600 return form.

Conclusion:

In addition to iXBRL, some Income Tax filers are also required to file an electronic Financial Statement. For these filings, the Revenue may request an iXBRL return if a company does not meet the mandatory tagging requirements. Registrants should consider whether they can prepare the return on their own or if they need to hire a third party vendor. If the vendor is unable to prepare an iXBRL return, the filing should be rejected.