XBRL, or eXtensible Business Reporting Language, is a standard for communicating and processing business information electronically. It was originally invented and promoted within the accountancy profession, in the USA. It is an open standard, free of licence fees.
The IT Faculty is heavily involved with the development and take-up of XBRL, working on behalf of members and in the public interest. The ICAEW, through the IT Faculty, is a member of the XBRL UK consortium.
Latest news and advice on implementing XBRL
Most items are about HMRC's mandation of Inline XBRL for corporation tax filings.
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What is XBRL?
XBRL works by adding 'tags', computer-readable labels, to financial reports. Information is tagged by choosing the appropriate 'electronic labels' from a hierarchical, structured dictionary of financial reporting terms called a 'taxonomy'.
Different taxonomies exist for IFRS and UK GAAP (and other countries' GAAPs), as well as for particular industry sectors, such as banking. A helpful explanation can be found at the XBRL.org website.
Inline XBRL (iXBRL)
Inline XBRL (or iXBRL) is a newer variant of XBRL which combines computer-readable data (the XBRL-tagged data) together with human-readable information in one and the same document. This is the variant that is being mandated by HMRC: see below.
Impact on accountants and auditors
The impact of XBRL on accountants and auditors will change as the technology becomes more widely used. FEE, the Federation of European Accountants, has issued a policy statement called eXtensible Business Reporting Language (XBRL) - The impact on accountants and auditors. This policy statement briefly explains XBRL and sets out FEE's position on XBRL.
XBRL worldwide
For a selection of articles about XBRL around the world, go to Interactive Business Reporting (iBR) magazine, which is produced in partnership with the XBRL International Consortium. It is downloadable free of charge.
Specific XBRL-related issues
1: HMRC and Corporate Tax Filings
Currently the biggest XBRL-related issue impacting accountants in the UK is HMRC's requirement that from April 2011 corporation tax returns must be filed electronically and must include accounts in iXBRL format.
2: Audit issues
The Auditing Practices Board, part of the FRC, has issued guidance to auditors on XBRL tagging of information in audited financial statements.
This guidance provides background information on that requirement and on the application of APB's Ethical Standards for Auditors to non-audit services relating to XBRL tagging.