Inline XBRL (iXBRL) is an updated SEC rule to the existing eXtensible Business Reporting Language (XBRL) SEC filing requirement that allows easier machine and human readability of public company’s financial data.
What are iXBRL Filings?
iXBRL filings involve integrating eXtensible Business Reporting Language (XBRL) tags directly into HTML documents. This allows one document to serve two purposes: it remains visually accessible for human readers while also being structured for machine processing. Unlike traditional XBRL that requires separate HTML and XBRL files, iXBRL consolidates these into one comprehensive document, reducing complexity and potential errors during submission.
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XBRL vs. Inline XBRL
Inline XBRL is an updated version of XBRL formatting. Whereas XBRL is only machine readable, and must be submitted alongside a human readable document, iXBRL embeds XBRL tags directly into a human readable document. This makes the single iXBRL filing both machine and human readable. Click here to view an example of iXBRL formatting.
When will filers be required to use iXBRL?
The phase-in requirements vary based on filer type and accounting standards used.
U.S. GAAP filers will be phased-in through a three year period beginning with fiscal periods on or after:
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- June 15, 2019 for large accelerated filers
- June 15, 2020 for accelerated filers
- June 15, 2021 for all other filers
IFRS filers have been required to comply with the iXBRL requirements since June 15, 2021.
On June 13, 2016, the Securities and Exchange Commission (SEC) declared a voluntary filing period in which firms are able to file their financial statements to the SEC in iXBRL format. This voluntary filing period ends in March 2020, and will allow the SEC to weigh the advantages of iXBRL filing against the current dual-format filing system (firms currently must submit both HTML and XBRL formatted documents to the SEC for proper viewing and machine processing purposes).
What does iXBRL mean for me?
Submitting financial statements in iXBRL format is expected to be more efficient than traditional filing formats and easier for investors and issuers to analyze data. As a leading filing agent, Colonial Filings Inc. now offers full service iXBRL filings.
The iXBRL Process
The preparation of iXBRL filings generally involves several key steps:
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- Data Preparation:Financial statements are prepared in a standard format, such as Excel or Word.
- Tagging:Specific financial data points are tagged using XBRL taxonomy. This tagging can be done manually or through specialized software.
- Validation: After tagging, the document is validated to ensure compliance with regulatory standards and check for tagging errors.
- Filing: The final iXBRL document is submitted to the SEC or the applicable regulatory body.
- Review:Companies review their submissions post-filing to confirm accurate data representation and tagging
Example of Tagging
To illustrate how tagging works in iXBRL, consider these examples:
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- us-gaap:Revenues: This tag is used for net sales revenue.
- us-gaap:GrossProfit: This tag denotes gross profit data.
- us-gaap:OperatingIncomeLoss: This tag indicates operating income or loss.
- These tags help simplify the interpretation of financial statements for analysts and investors.
