XBRL: A Reporting Language that Has Made Data Reporting Easier
Financial institutions and banks have benefitted from XBRL software as financial reporting is now easier along with data exchange across departments or companies without any issues. XBRL or extensible business reporting language is used today in a format where future HMRC filings have to be made. The aim is to maintain statutory accounts so that electronic filing is easier. Ixbrl can then be used for marking or tagging the information that can be better interpreted by the HMRC system.
IXBRL and HMRC
XBRL can be read by machines. That is why financial data reporting is made easier and much easy to understand for the analysts. On the other hand, Ixbrl is machine and it can be manually operated making it easier for HMRC on what needs to be displayed. XBRL has benefits like easy usage of software, can be converted easily and gives a good ROI. It can be used with HMRC iXBRL for tagging and auto validation.
HMRC Specification for iXBRL
Ixbrl as such is the format where it is mandated that all future HMRC CT filings will be made. It mixes with XBRL data tags so that one can view accurate account reports in a browser. There is no need to change the layout or style of the accounts as HMRC can easily view them as it is, if it is in ixbrl. The HMRC specifies that only when the company tax returns are submitted online with accounts in IXBRL format, it needs ixbrl tagging. It should be noted that HMRC has published ‘minimum tagging lists’ in relation with the UK GAAP rules.
If one opts for not using XBRL final accounts software, then it is important to generate an ixbrl file with required XBRL tagging after final accounts are prepared. All computations since April 2011 for the UK companies have to be submitted in the HMRC iXBRL format. Accounts in IXBRL format can be viewed as a PDF also.
Thus, HMRC has made things easier by eliminating data entry and saving costs by adapting ixbrl and XBRL.