Are you ready for iXBRL?

On the 1st September 2009 HMRC and Companies House issued a joint statement decreeing that companies and organisations that are required to, must file their returns and tax computations online using an international IT data standard known as eXtensible Business Reporting Language (XBRL).

  • Full details of the statement can be found here

The key element to come out of this statement is that this is not an optional requirement - it is a mandatory standard that will be enforced by the HMRC coming into effect as of 1st April 2011, for all accounting periods after 31st March 2010.

What is XBRL and iXBRL?
XBRL, is a global defacto reporting language that analyses financial information and automatically arranges it into a consistent format, regardless of the size, type or location of a company.  Inline eXtensible Business Reporting Language (iXBRL) is the format that enables XBRL tags to be readable to the human eye. Files can be opened using a web browser so you can see the original content of a financial document in a format that makes sense.

XBRL is:
• Business information modelling in a form computer applications can use and process
• The provision of consistent data in computer format
• A better approach to exchanging and analysing business and financial information

What does this mean to me?
Ultimately there is no getting away from it – XBRL will affect you one way or another, so it is better to embrace it now.  The end goal of XBRL is to align financial reporting under one consistent format, although there will be some initial pain this motive in itself makes sense.

• YOU HAVE NO CHOICE as from the 1st April 2011, HMRC will only accept online lodgement of company tax returns, and both statutory accounts and corporation tax computations in iXBRL format.  
• With iXBRL anyone reliant on the exchange and use of financial info can exchange information with others in a fraction of the time.
• The UK isn’t alone XBRL is being adopted by governments across the world, and will without doubt become a global standard for business reporting.

What do I need to do?
It is the responsibility of the company directors to ensure that the company is able to comply with this enforced change.  The options open to you are:

• Make the significant investment into the software
• Have your accountant, who may not yet have the capability, perform this task for you
• Outsource this function to a third party agent such as taylorcocks to ensure total compliance

How can taylorcocks help?
Taylorcocks has had the foresight to invest in XBRL to ensure that our clients remain compliant and free from risk  We are one of only a small number of service providers capable of running reports in the new XBRL and iXBRL standard.  Taylorcocks will ensure that your accounts and tax computations are submitted in the correct format, with 0 errors, within a timescale that ensures you remain free of complications and queries from the HMRC.

• Remove the hassle of iXBRL (your time is better spent elsewhere)
• We keep up to date with changing legislative requirements
• Our processes ensure a low cost high quality service delivery
• Resource available to deliver timely iXBRL accounts
• Agreed timescales to suit your needs
• Fees are agreed and fixed in advance

Contact a member of taylorcocks today to find out how we can help.