Regulations prescribe the need for EU-listed companies to report annual disclosures from 2020 onwards in a new format: iXBRL. Because of the mandatory nature of this filing, corporates should already be working on the output reports by now. This article intends to assist the finance community in getting the job done. The regulatory nature of the iXBRL filing shifts the thinking process of corporates into a compliancy mindset. This mindset seeks to deliver the bare minimum of the reports in order to avoid penalties. However, the nature of iXBRL allows it to be used for more than just that.
With the new technology comes new strength and new thoughts
In the past, XBRL filings were required by the Chamber of Commerce. These filings have always been more technical, being only readable by machines and analysed using technology by those savvy enough. The introduction of iXBRL changes this: The format now becomes readable by not only those that have the translation tools, but everybody with a browser.
This presents a unique opportunity for corporates to combine compliancy with corporate publishing needs. In an era of Fake News and Fact-Checking, the role of data and transparency becomes a necessity for trustworthy communication. Is there a better way to inform your customers and employees of the performance of your company through the very same channel with which you report to the authorities? Combining these audiences sends out the ultimate sign of confidence and transparency. Because of this technology you can show the companies’ performance and send the right message to your audience.
“Is there a better way to inform your customers and employees of the performance of your company through the very same channel with which you report to the authorities?”
How to get there
However, getting there does not seem to be the easiest of tasks. Impactful regulatory changes like these are often met with project groups, steerco’s and long hours. The impact of iXBRL still requires the attention of several departments within your company. However, from a technical perspective the requirements are made much easier due to advanced developments in technology.
Collaboration between EPM, Machine Learning, and regulatory developers allows for sophisticated tooling that can automate the tagging process. This puts the financial back in the driver seat of the project. Additionally, it assists in freeing up time and budget to work on the narrative of the story. And proper storytelling is the key to turn data into impact. And let’s be honest, isn’t that exactly what you would like to achieve?
Would you like to find out more about implementing this for your own company? Take a look at our video Unboxing of the mysteries of iXBRL or directly contact us with the links below.
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