With interest in corporate performance at an all-time high, government agencies and regulators are under more pressure than ever to enable fast, high-quality filings, and data. Enter the iXBRL format (Inline eXtensible Business Reporting Language), a powerful standard that combines machine-readable data with human-readable reports, revolutionising corporate disclosures for the digital age.
From tax filings to sustainability metrics, iXBRL is streamlining digital reporting throughout the world. This guide explores iXBRL’s mechanics, benefits, and applications before diving into how we handle digital reporting and collection with our comprehensive software.
What is iXBRL?
iXBRL, or Inline XBRL, is a global standard that embeds machine-readable XBRL tags within HTML documents.
iXBRL refers to Inline eXtensible Business Reporting Language
This means that the resulting reports are both human-readable with freeform layout AND able to be processed by a computer.
CoreFiling invented the iXBRL format as the solution to digitising the collection of company accounts whilst letting accountants retain the information conveyed by the layout and structure of the financial statements. It is now normal for full annual reports to be created using iXBRL technology. This brings iXBRL tags alongside graphically rich layouts, pictures and charts to create informative and functional digital reports.
iXBRL is one module within the full XBRL Specifications, governed by XBRL International. CoreFiling have continued to be a leader in maintaining the standard to ensure it evolves to meet modern reporting needs. Use of iXBRL continues to grow as the global, de facto standard for digitisation of corporate compliance worldwide.
Let’s see what sets iXBRL apart from its XBRL counterpart.
Report Presentation
Unlike XBRL’s other machine-readable formats, preparers of iXBRL accounts can use the full variety of the HTML format to create visually appealing documents. This characteristic is ideal to capture full, principle-based disclosures for regulators, government, and stakeholder communications.
For example, a company’s balance sheet tagged with iXBRL appears as a polished document when opened to read normally, while opening in an iXBRL viewer reveals the embedding data for automated processing. Reporting companies use software like the True North Data Platform to review these reports or to produce embedded viewers for publication on their website.
The end result is perfect for use with digital reporting obligations where companies need to meet the needs of the regulator as well as create a professional presentation to get their message out to the public.
Entity-Specific Disclosures
Whereas XBRL is usually used to produce reports with fixed data points like a form or template, iXBRL is often used with extensible taxonomies. These allow businesses to report all material disclosures, as requried by principle-based accounting standards, even if they are unique to the company. The additional data points are referred to as entity-specific disclosures. This flexibility allows for common and precise reporting for diverse industries with unique line items.
The European Securities and Markets Authority (ESMA) took this one step further, introducing taxonomy anchoring. So, for example, a unique item on the balance sheet will be attached to the main taxonomy alongside the standard balance sheet items. In this way, iXBRL not only supports customised data tagging, but also explains how the custom iXBRL tags should be understood and processed.
This offers a simple way to generate entity-specific disclosures, allowing filers to efficiently customise taxonomies to fulfill their disclosure requirements.
Beyond Financial Reports
Use of iXBRL extends beyond financial statements: full annual reports, solar generation data, Country-by-Country Reporting (CbCR), sustainability and corporate actions are all examples of where iXBRL has been used by global authorities who rely on iXBRL for consistent high quality reports.
iXBRL is pivotal for the new wave of sustainability reporting, driven by market authorities like ESMA. It enables tagging of Environmental, Social, and Governance (ESG) data, ensuring compliance with emerging regulations. Companies can disclose items such as carbon emissions or governance metrics in iXBRL, blending narrative and structured data.
The versitility of iXBRL supports scalable solutions for complex reporting needs across industries.
An Open Standard
iXBRL is an open, free standard managed by XBRL International and adopted in over 50 countries. Its transparency cultivates trust among regulators, businesses, and stakeholders. Importantly, it specifically addresses the needs of governments in choosing formats to meet transparency and accessibility laws.
This openness, alongside high-profile adoption by the US, EU, UK, Japan and more, drives further global use, supporting seamless data exchange in a globalised world.
Who Uses iXBRL?
Several successful data collections rely on the iXBRL format to digitise their data collections. Here is an outline of three of the highest profile iXBRL mandates.
HMRC and Companies House (UK)
Going live in 2010, the move from paper and PDF filing of accounts for tax and statutory reporting to iXBRL was jointly carried out by HMRC and Companies House. HMRC use this data and the iXBRL tax computation as part of the risk profiling for corporation tax and to support paperless investigation. Companies House publish the digital filings as part of their registry.
Securities and Exchange Commission, SEC (US)
Initially collecting digital data in the non-inline verison of XBRL alongside a PDF version of the accounts, the SEC moved to iXBRL filing in 2018. This meant that a single document would be used for reading by a person and by computers. Digital data is published through the EDGAR system to support effecient working of US markets.
European Single Electronic Format, ESEF (EU)
In 2019, the European Commission passed securities legislation for all member states to collect annual financial statements in the ESEF format. The ESEF (and the UK variant UK-SEF) includes definitions for untagged (XHTML) and tagged (iXBRL) documents. Digital data is now available for every company listed on a regulated EU stock exchange and is notable for the glossy, highly design-oriented nature of these important corporate communications.
The iXBRL Ecosystem
When a data collector uses iXBRL to standardise data collection for tax, financial or other business reporting, this creates an ecosystem around the production and consumption of the digital data. Each stakeholder relies on the standardised format for compliance and efficiency:
- Companies: Millions of firms file iXBRL reports annually for regulatory compliance.
- Accountancy Firms: Streamline client filings with iXBRL.
- Audit Firms: Provide assurance of iXBRL reports as required by national laws.
- Tagging Providers: Provide a fast conversion process for reports created by graphic designers or using Office formats such as Word.
- Software Vendors: Integrate iXBRL into reporting software for seamless disclosure solutions.
- Analysts: Download and process iXBRL accounts to gain insight into company fundamentals.
- Banks and other lenders: Query and process filings as part of automated lending decisions.
Several companies with global reach (such as CoreFiling) are on hand to lend their expertise and solutions to make iXBRL filing programmes successful. Their efforts are complimented by those of XBRL International and standard setters such as the IASB who provide guidance on implementation and governance.
Why Should A Country Use iXBRL?
iXBRL transforms national reporting by combining human-readable HTML with machine-readable XBRL, enabling countries to streamline regulatory processes and deliver corporate digital data. Use of iXBRL creates structured data for tax, financial, and ESG compliance, which benefits governments, filers and analysts.
Realise Digital Ambitions
iXBRL is the de facto standard for digital collection of complex business data, such as financial statements. It transforms data collections previously carried in paper or PDF to deliver structured data ready for automation and AI processing.
iXBRL as a standard is kept open and free to meet transparency and accessibility legislation. Existing implementations have created a broad and deep supplier base of mature software and services to keep implementation costs down and compliance up.
Deliver High Quality Financial Data
By structuring data in a standardised, human and machine-readable format, iXBRL delivers transparent, comparable disclosures for regulators and stakeholders. The digital data standards (taxonomies) ensure that everyone understands the contents and automated business rules, run as part of report acceptance, ensure quality remains high.
Simplify Filer Journey
Moving to digital reporting of business data is a great opportunity to simplify filer journeys for registries, tax and regulation. In addition to being able to file documents like company tax returns online, several options become available to improve the lives of filers:
- Web forms and offline forms, automatically generated from taxonomy data definitions, these make defining a set of accounts easier for less sophisticated filers through simple data entry.
- For filers using accounting packages, iXBRL reports can be filed directly from accounting software to the data collector with validation and data quality checks run as part of an automated process.
- In addition, iXBRL tagging can be used to maintain design-driven filer workflows without changing the core report preparation process.
Reduce Filer Burden
Moving to iXBRL data is often part of a broader push to reduce filer burden, typical ways this is achieved are:
- Using iXBRL data as part of joint filing services for multiple government agencies.
- Providing immediate feedback to filers on whether a report is compliant and accepted.
- Having a single report for both computer-readable tags and viewable documents.
- More advanced features like autofilling reports from prior accounting periods.
Introduce and Enforce Data Standards
iXBRL inserts digital versions of reporting standards as a core part of the reporting process. The direct link to the data standard makes compliance much easier to achieve and enforce and delivers provable adherance to global financial reporting requirements.
Standards bodies, such as the IASB and ISSB put significant work into their digital standards to help jurisdictions adjust and implement them smoothly.
Why Choose CoreFiling for iXBRL?
CoreFiling has been a trailblazer in XBRL and iXBRL solutions, delivering unmatched expertise to simplify corporate disclosure for two decades.
A key part of the XBRL community, CoreFiling software has been used to process millions of filings and create hundreds of thousands more. Our leadership of the Inline XBRL specification enables clients to stay ahead of regulatory trends.
Our Software
CoreFiling’s True North Data Platform simplifies iXBRL filing and covers the entire reporting ecosystem.
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The Taxonomy Management System is the cornerstone to the governance and maintenance of the filing system. It provides structure to updates and does the hard technical work required to create data definitions aligned with standards like IFRS and manage change from tax legislation, accounting standards and data quality feedback.
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Seahorse for tagging and Beacon for audit are the backbone of our filer-side offerings, often via cost-effective services from our partners.
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The Data Collection Portal streamlines the operation of filing programmes, automates validation and manages communications with the filers.
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Search and Extract puts a wrapper around collected iXBRL files keeping them seamlessly searchable as a single data set for use internally and to offer to the public. It is a core part of data quality feedback solutions.
Certified by XBRL International, CoreFiling combines technical excellence with a collaborative approach. Our tailored support and thought leadership will ensure your success.
Ready to transform?
Contact CoreFiling for reliable, innovative, and compliant iXBRL reporting and running national data collections.
Frequently Asked Questions
Still want to know more about iXBRL? Read on to see some common questions answered by our experts.
What is iXBRL tagging?
iXBRL tagging is one method your filers can use to embed XBRL tags in HTML reports. It might not be necessary for a large proportion of reporting companies if financial software providers can produce iXBRL in their software packages. Our tools automate tagging, cutting errors and speeding up iXBRL conversion.
How does iXBRL differ from XBRL?
XBRL uses XML, JSON or CSV for machine-readable data, while iXBRL integrates XBRL tags into HTML for reports that are both human-readable and machine-readable. In this way, iXBRL enhances accessibility for stakeholders and regulators.
Should iXBRL be mandatory?
Some organisations, such as Companies House in the UK have had extremely successful voluntary filing programmes. However, this was hand-in-hand with a mandatory requirement to file iXBRL to the tax authority. In general, digitisation is most beneficial when it is mandatory and the data collector works with service providers to ensure filer burden is reduced.
If you are a filer, then you will need to understand your filing obligation and whether using the iXBRL format is allowed or required.
What are the benefits of iXBRL for ESEF reporting?
ESMA developed ESEF as part of new securities regulation to digitise annual financial reports for listed companies. Core to this was the use of the iXBRL format. The whole of the EU now benefits from standardised, comparable, trusted digital data to enhance transparency for investors and regulators.
The use of the mature iXBRL standard was important in ensuring a smooth transition for what was undoubtedly a major international change in how companies report their performance.
