Back to Basics: What is iXBRL and Why Do You Need it?
iXBRL or inline eXtensible Business Reporting Language is a format that enables a single document to provide both machine and human-readable data. The CIPC introduced it to streamline financial reporting and enhance communication of information between businesses and other financial information users such as investors, stakeholders, analysts, regulators, etc.
iXBRL embeds several “tags” that give meaning to the figures and statements furnished in financial statements in such a manner that a computer understands them. It does not change the financial information being reported, simply the way it is reported.
iXBRL: Driving Financial Compliance in the Digital Era
Considering the impact of iXBRL in improving efficiency when submitting Annual Financial Statements electronically, the CIPC mandated the digital reporting system for all eligible entities.
This digital reporting format helps companies file their AFS and transition from a PDF reporting format to a more structured and transparent format.
By introducing the iXBRL program, the CIPC aims to:-
- Reduce the regulatory and compliance burden on businesses to report financial information to the government.
- Achieve regulatory compliance and streamline the entire reporting process.
- Provide more transparent and accurate business and financial information to investors for better analysis and decision-making.
Why Do You Need iXBRL?
Whether you are an investor, a regulator, or a business, iXBRL can provide several benefits to you.
- The iXBRL format enables human and machine readability, resulting in a faster, reliable, and accurate reviewing and reporting process. As a result, the financial data is handled more structurally, improving analysis and better quality of information.
- iXBRL enables business and financial information transparency to other users, like investors, stakeholders, and regulators. Structured and high-authority data allows for easy comparison of business reports and analysis.
- With Inline XBRL, the possibility or errors is reduced significantly since the numbers are tagged on the document itself. So regulators can detect any inconsistencies or malpractice, or fraud.
iXBRL: The Only Way to Report Financial Statements
Several financial and regulatory reporting regimes all over the globe have adopted iXBRL due to the increased efficiency and high-authority it offers.
By partnering with a global leader in iXBRL conversion services like DataTracks, you can take control of the financial reporting process, reducing the overall reporting cost and pressure on your business. With DataTracks, you can be rest assured that you’re partnering with the best iXBRL team in the market boasting unparalleled experience of over 16+ years, quality services, and commitment to error-free financial reports.
To find out more about the work DataTracks does and ways it can help, please speak to an expert @ +27-10-446-9061.