26.06.2024

iXBRL

What is iXBRL?

iXBRL ("Inline eXtensible Business Reporting Language") is a further development of the XBRL format used for digital reporting. All financial and non-financial information in an HTML document is provided with specific computer-readable "XBRL tags" so that all figures and statements from the human-readable HTML format are also machine-readable. This means that a single document is accessible to both machine processing and human readers.

Why iXBRL?

The European Single Electronic Format (ESEF) introduced by the European Securities and Markets Authority (ESMA) requires the use of iXBRL for the preparation of annual financial reports of listed companies in the European Union.

This requirement is intended to ensure the human and machine readability of financial reports in order to improve transparency, comparability and efficiency of financial reporting in the European Union. In concrete terms, this means that financial information should be transparent and comparable across different companies and countries, regardless of language, structure and format, and that investors, authorities and issuers should be able to analyse and process financial information automatically.

What does iXBRL look like?

Reports in iXBRL format can be displayed using standard Internet browsers; they do not look any different from normal web pages. The additional information contained in the documents, which can be attached to both numerical and textual information, can only be extracted and displayed by iXBRL-capable software. They remain invisible to the viewer.

Advantages of the iXBRL format

iXBRL enables the provision of machine-readable and human-readable data in a single document. It therefore simplifies data processing, eliminates inconsistencies between different documents, increases transparency and ensures that companies and regulators alike can benefit from standardised and efficient reporting. The iXBRL format also facilitates cross-company and cross-country analyses and comparisons by providing the structured data required by regulators and analysts.

• Efficiency through automated analysis and processing of financial data
• Accuracy and consistency by eliminating input and transmission errors
• Transparency for investors, analysts, issuers and supervisory authorities by standardised presentation and traceability of financial information
• Comparability of financial data across different companies and countries
• Interoperability through the use of standardised, internationally recognised tags
• Regulatory compliance through fulfilment of all regulatory requirements

iXBRL-taxonomies

Based on the iXBRL standard, the regulatory authority defines document-specific tags for each document type. The iXBRL taxonomies created in this way enable the consistency, comparability and computer readability of specific documents.

While the XBRL standard provides the basic alphabet and grammar for digital reporting, XBRL taxonomies provide the dictionaries with document- or domain-specific vocabulary. This results in different taxonomies for different purposes (e.g. annual financial statements, white papers, sustainability, etc.).

ixBRL taxonomy for more and more financial documents

On 1 January 2020, the European Securities and Markets Authority (ESMA) introduced the "European Single Electronic Format" (ESEF) for capital market-oriented companies. Since this date, consolidated financial statements must also be published in a human- and machine-readable format.

With MiCAR coming into force, crypto issuers must also ensure dual readability of their documentation, which requires the use of appropriate technologies and formats. All whitepapers on issued crypto assets must be created and published in both human-readable and machine-readable iXBRL format in accordance with MiCAR.

Simplify your processes with iXBRL format

CS Legal supports the human- and machine-readable iXBRL format for common financial documents so that they are not only easily read by your investors, but just as easily processed digitally by regulators. Your entire filing and publication process will be significantly more efficient, accurate and transparent.

Utilise the possibilities and advantages of the powerful iXBRL format for your financial documents! We will support you!

Please contact us for a personal consultation.