XBRL and the Provisions of HMRC IXBRL for Corporate Firms
XBRL has been made mandatory by the SEC recently. This has made things easier for the software developers and vendors to make this reporting software well known across the globe. XBRL has been used greatly by accountants, financial analysts and COO's for preparing financial reports in their firms.
Use of XBRL in Financial Sector
However, XBRL products in the financial sector fall in two categories: Data organizations and public organizations. XBRL is known to use the W3C standards to define their taxonomies and effectively present financial data information. HMRC Ixbrl has put hold on Ixbrl for time being, due to requests and demand from organisations putting focus now on XBRL for the time being.
Advantages of the software
XBRL was developed by and for the accounting industry. That is why accountants prefer using it as they understand what it is and how it assists in financial filings and tax analysis along with automated comparison. The XBRL reports can be read in many languages saving time and human effort. The software vendors who handle financial information prefer XBRL for easy data experot and import format with a focus on financial applications.
HMRC Requirements of IXBRL
The HMRC Ixbrl is little costly compared to XBRL. So, companies and accountants do not want to invest money to prepare ixbrl account reports for tax preparation. Moreover, they might have to change their organisational procedures to comply with HMRC requirements which is costly. But,they prefer to use GAAP ixbrl for tagging purposes.
HMRC had earlier hinted that it would adopt a soft rule approach for the first two years with regards to Ixbrl. This would help the firms to get familiar with it. HMRC would also not impose penalties or reject any returns if businesses try to submit their accounts in ixbrl format. The firms only need to include the required tags in format of Ixbrl or XBRL.
XBRL brings better visibility and transparent business report information, which is very simple for economic companies, stock exchanges and government to view the reports.