XBRL & iXBRL

Put simply, XBRL is a bit like bar coding for financial statements, enabling every piece of data to be coded (tagged) with an identity.

Computers can then read an XBRL report and select specific data, collate it, analyse it and exchange it with other computers. It is a universal language that can be adapted to any nation's accounting standards.

iXBRL is the inclusion of all untagged items, plus all the formatting instructions, together with tagged items. This is provided in a human readable manner, laid out in the style of a printed document.

The viewed file looks the same to both author and reader, and also incorporates computer readable XBRL tags. The iXBRL computation file and accounts file are attachments (like PDF files) and are submitted alongside the electronic version of the CT600.

How will this affect my practice?

On 1 April 2011 iXBRL becomes compulsory. This will affect two elements of your accountancy software: corporation tax and accounts production. Sage has been working with HMRC (www.hmrc.gov.uk) from the outset to support accountancy and tax professionals in the implementation of these new requirements.

It's our recommendation that you use the mandatory period in the run up to April 2011 to start familiarising yourself with iXBRL-compliant software.

Our iXBRL-compliant corporation tax software is now available, and in advance of the 1 April 2001 switchover we'll be introducing software updates for our accounts production packages. Prior to release, our accounts production software will undergo a period of testing to ensure that the range is as user-friendly as possible, and contains as many of the 'wish-list' items submitted by our customers as possible.

HMRC will initially accept accounts and corporation tax computations in which only some of the data is tagged, and have already published minimum tagging lists for this. This will continue indefinitely for corporation tax computations, although the details of the list may vary over time with new legislation. For more information on this, download our Sage Guide to iXBRL.

Benefits

XBRL can help you use accounting data faster, less expensively and more efficiently. Introducing XBRL gradually over the voluntary period will minimise disruption to your practice when the system becomes mandatory.

Using XBRL sooner rather than later presents a huge opportunity for you to identify new clients and win more business from existing clients who need expert support to meet the new requirements.

Timeline

3 November 2009

HMRC implements new online filing system for company tax returns. The new system also supports the submission of iXBRL tax computations and accounts.

23 November 2009 - 31 March 2011

'Voluntary' period for iXBRL filing.
Companies can choose to adopt the new iXBRL online submission or continue using the existing PDF online submission or paper filing methods.

19 July 2010

Sage Corporation Tax (powered by Abacus) is launched. The new software is able to produce and submit iXBRL tax computations, and submit iXBRL accounts.

September - November 2010

Throughout this period we'll be working in tandem with some of our key partners, using a test version of our Sage accounts production packages to ensure the smoothest possible transition towards an iXBRL-compliant solution. This period will provide us with invaluable ongoing feedback as we develop our accounts production software in preparation for release prior to the 1 April 2011 download.

November - December 2010

By the end of the year we will release updates for our Sage accounts production packages. Not only will the updated software be iXBRL-compliant, it will also contain the new Interactive Financial Statements (IFS) layer.

1 April 2011

Companies will be obliged to file all original company tax returns for periods ending after 31 March 2010 in the format introduced in November 2009. This means the submission of tax computations and accounts using iXBRL is now mandatory.