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, online filing in iXBRL format became compulsory.

This affects 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.

HMRC currently accept accounts and corporation tax computations in which only some of the data is tagged. Their priority is to support customers through this first cycle, which will last up until 31 March 2013, and not find reasons to reject returns or impose penalties for minor deficiencies. After 31 March 2013, full XBRL tagging will become mandatory (for more information visit www.hmrc.gov.uk).

Our full range of iXBRL-enabled software solutions are currently available, and in 2012 we'll be launching a new version of our accounts production in-line with full tagging, well in advance of the 2013 deadline.

For more information on this, download our Sage Guide to iXBRL.

Benefits

iXBRL 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.

In fact using iXBRL 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.