What is XBRL

Dr Paul BoothTechnical & Development Manager, IT Faculty

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the techie bitNot

Look under the bonnet?

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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

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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>

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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

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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

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… 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

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What’s a taxonomy?

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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

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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 293,900Profit and loss account

(258,892)

SHAREHOLDER’S FUNDS

35,508

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… and then there’s iXBRL

• Humans read the HTML • Computers read the XBRL tags

• Inline XBRL• HTML and XBRL in the same document

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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.

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Companies House

• Currently the simplest companies – dormant and abbreviated accounts

• By end November 2009, 738,515 accounts e-filed at Companies House, of which 537,760 web filings and 200,755 using software

• Later this year, Companies House moves to iXBRL

• Eventually, a single filing for both HMRC and Companies House purposes.

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Companies House

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Companies House and HMRC

Companies House• 2006: voluntary XBRL for

small/simple companies

• Summer 2010: voluntary iXBRL for unaudited full accounts

• Summer 2011: voluntary iXBRL extended to all accounts

HMRC

• November 2009: voluntary iXBRL

• April 2011: mandatory iXBRL

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Why HMRC?• Analyse returns more efficiently• Target ‘problem cases’ – eg suspected fraud,

under-payment more effectively• Make processes less labour-intensive, therefore

cheaper• Enable better analysis of effects of possible

changes in legislation/tax rates