Published - 17 September, 2019
What is the purpose of iXBRL? Apart from the fact that its use is now a regulatory requirement, iXBRL is explained by the problems solved. Previously, there had not been a consistent specification that worked for all entities. The preparation of automated rendering and extraction tools needed to be prepared for each different specification used to create financial statements. This is not very efficient.
Therefore, the accounting profession’s vision is to create one specification that everyone uses. Specifications will meet the needs of each industry, with all specifications will using a similar framework.
There is one way to achieve this consistency: iXBRL (not PDF, HTML, raw text, or any other method). The goal is to create a standards-based method to prepare and publish financial statements, in a variety of formats, allowing for exchange and analysis across all software formats.
iXBRL for financial statements provides agreement on the terms used by establishing uniform categories for financial data. Yet, the system remains flexible to accommodate any company’s internal environments, processes, systems, and even styles.
With iXBRL, companies need to review and approve only one document (iXBRL) as opposed to two formats – XBRL and HTML. The benefits are seen in time and cost savings, faster review processes, more reliable and accurate handling of data, improved analysis and better quality of information and decision-making.
Ince’s iXBRL solution combines human interaction with our robust reporting intelligence software – ultimately guaranteeing an accurate representation of your company’s AFS – a “single version of the truth”. Ince’s disclosure management solution ensures accurate mapping and facilitates a consultative workflow process to result in a CIPC compliant instance file and, additionally, will be ready for consumption beyond mere compliance. An important part of Ince’s human intelligence and intervention process is client approval of the whole filing before final submission – a feature not present in other conversion software.
Find out more on Ince’s iXBRL offering here: