What is XBRL

Dr Paul BoothTechnical & Development Manager, IT Faculty

?

ICAEW

the techie bitNot

Look under the bonnet?

ICAEW

Start with the familiar: HTML

‘The book <i><b>Systema Naturae</b></i> was one of the major works of the Swedish botanist, zoologist and physician Carolus Linnaeus.’

<b>Systema Naturae</b> Systema Naturae

<i>Systema Naturae</i> Systema Naturae

<i><b>Systema Naturae</b></i> Systema Naturae

ICAEW

ICAEW

ICAEW

What about XML?

• Like HTML but a bit cleverer• A browser knows (from a Stylesheet) how to display it• Other programs can process it too• It’s all about tagging

<name>Mr John Smith</name><addr1>23 Acacia Avenue</addr1><addr2>Birmingham</addr2>

ICAEW

Tagging

• What does each tag mean?

•Is it <addr1> or <address firstline>?

• Will the code MIA send your bag to Miami International (USA) or Mian Yang (China)?

So, every tagging language needs a dictionary

ICAEW

All sorts of tagging languages

• ebXML: ‘ebXML enables enterprises of any size, in any global region, to conduct business using the Internet’

• CML: ‘CML (Chemical Markup Language) is an approach to managing molecular information …’

• ThML: … and there’s even one for Theology!

• Tagging makes it easier to share data between users without manual re-keying

• …and for computers to extract and process data

ICAEW

… and now XBRL

• eXtensible Business Reporting Language• Freely licensed standard, originated in

accountancy profession• It is XML – and cleverer still• As well as tagging data items

o it can show relationshipso … and how they have been calculatedo Uses a taxonomy

ICAEW

What’s a taxonomy?

ICAEW

ICAEW

Taxonomies

• An XBRL taxonomy is the same sort of thing: a ‘dictionary’ and logical categorisation scheme for financial reporting concepts.

• Examples: ‘net profit’, ‘assets’, ‘equity’• In XBRL, taxonomies relate back to financial

reporting standards• Different taxonomy needed for different reporting

standards – in UK, UK GAAP or IFRS

ICAEW

Transparent reporting, checking

• Each ‘fact’ (eg ‘Share premium = £293,900’) can be related back to the taxonomy.

• Items that are supposed to add up can be checked

• Definitions and context (eg currency, period, units) are there. Called up share

capital500

Share premium 293,900

Profit and loss account

(258,892)

SHAREHOLDER’S FUNDS

35,508

ICAEW

… and then there’s iXBRL

• Humans read the HTML • Computers read the XBRL tags

• Inline XBRL• HTML and XBRL in the same document

ICAEW

Just a bit more background …

• XBRL already in use around the world

• SEC in the USA one of most significant

• In the UK, Companies House XBRL filing has been running for past four years.

ICAEW

Companies House

• Currently the simplest companies – dormant and abbreviated accounts

• Next year, Companies House moves to iXBRL• Eventually, a single filing for both purposes.• Up to end of November, 738,515 accounts e-filed

at Companies House, of which 537,760 web filings and 200,755 using software

ICAEW

Companies House

ICAEW

What about HMRC?• Enable tax authority to analyse returns more

efficiently.• Target ‘problem cases’ – eg suspected fraud,

under-payment more effectively.• Make the tax authority’s processes less labour-

intensive, therefore cheaper.• Enable better analysis of effects of possible

changes in legislation/tax rates.