FAQs

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    What are XBRL and iXBRL?

    EXtensible Business Reporting Language is an electronic language which caters for the transmission of business and financial information such that it can be understood and processed by another system. An XBRL report is not designed to replicate the visible content of an existing document, but rather to convey specific facts – a company’s turnover, financial year-end and registered address, for example – through the assignment of labels or ‘tags’.

    Inline eXtensible Business Reporting Language is a format produced by embedding XBRL tags within an HTML or ‘web page’ document. This allows not only the transmission of specific business facts, but also the replication in its entirety of a report from which those facts were taken. This allows for the production of full financial or business documents that can be understood by both humans and computers alike.

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    What are the current applications of XBRL and iXBRL?

    XBRL can be adapted to suit any specific reporting environment through the development of 'taxonomies' (dictionaries of reporting terms). This means that however a data value is tagged it will be properly understood and interpreted in the relevant regulatory context.

    The main driving force behind the uptake of XBRL and iXBRL has been the data-handling efficiencies available, from transmission and assimilation to processing and analysis. Both standards also allow for automatic validation of reported data which can be used to impose discipline on submissions and ultimately improve accuracy.

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    What are the benefits of XBRL and iXBRL?

    XBRL can be adapted to suit any specific reporting environment through the development of 'taxonomies' (dictionaries of reporting terms). This means that however a data value is tagged it will be properly understood and interpreted in the relevant regulatory context.

    The main driving force behind the uptake of XBRL and iXBRL has been the data-handling efficiencies available, from transmission and assimilation to processing and analysis. Both standards also allow for automatic validation of reported data which can be used to impose discipline on submissions and ultimately improve accuracy.

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    What are the current HMRC requirements?

    Since 2011 HMRC has required most UK companies and organisations to submit Company Tax returns in XBRL and the accompanying financial statements and tax computations in iXBRL. Filing deadlines and the required content of the reports submitted have not changed as a result of XBRL adoption.

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    How can Arkk help with these requirements?

    Our Arkk iXBRL Adapter software produces iXBRL accounts and tax computations direct from any Microsoft Word or Excel documents. Some of our clients use this to create their own iXBRL reports in-house, while others prefer to use our dedicated XBRL-tagging team of qualified accountants to carry out the conversion for them.

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    Will Arkk submit my return to HMRC?

    No, but we can advise on the best approach for you, whether that be the free HMRC Online service (https://online.hmrc.gov.uk) or third-party submission software. We will also support you at every step until your returns have been successfully filed.

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    What are the Companies House requirements?

    Companies House accepts iXBRL financial statements on a voluntary basis through their WebFiling service (https://ewf.companieshouse.gov.uk/) or via third-party submission software.

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    What are the new Revenue requirements?

    From 1 October 2013 Corporation Tax payers in Revenue’s Large Case Division will be required to deliver financial statements in iXBRL in support of their returns.

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    When will other entities be affected?

    The timetable for other entities has yet to be finalised but phasing in is expected over the next couple of years.

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    Do the accounts themselves differ as a result of iXBRL adoption?

    No, the contents of the accounts submitted are not affected, only the format in which they are presented.

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    Are dormant entities exempt?

    Yes, dormant companies will not be required to deliver iXBRL accounts. The definition of dormant for this exercise has been been defined specifically by Revenue.

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    Are audit-exempt entities also exempt from iXBRL?

    No, audit exemption does not affect the requirement to deliver iXBRL accounts.

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    How are iXBRL accounts delivered to Revenue?

    Through the Revenue On-Line Service (ROS).

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    What are COREP and FINREP?

    COREP or Common Reporting is a regulatory framework developed by the European Banking Authority (EBA) and its predecessor the Committee of European Banking Supervisors (CEBS) since 2005 to develop and harmonise the reporting of capital requirements capital by credit institutions and regulated investment firms across the EU.

    FINREP or Financial Reporting ‘is a standardised EU-wide framework for reporting financial (accounting) data. It comprises templates for reporting the income statement and the balance sheet, as well as breakdowns of other data’ [FSA]. As with COREP, the FINREP framework has been in development by the EBA and its predecessor since 2005, and aims ‘to achieve a high level of harmonization and strong convergence in regular supervisory reporting requirements’ [EBA].

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    Whom do the new rules affect?

    COREP applies to all credit institutions and regulated investment firms in the EU at a consolidated, sub-consolidated and entity reporting level. In the UK, for instance, all firms covered by the DSA’s BIPRU Prudential sourcebook - banks, building societies, BIPRU investment firms and any group containing one of these - fall within the scope of the new requirements.

    FINREP applies to all credit institutions reporting on a consolidated basis in conformity with IFRS within the EU. EBA defines “CRD credit institution” as ‘an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account’.

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    When do the new rules come into effect?

    COREP The latest EBA timetable scheduled implementation across the EU by 1 January 2014, but application currently varies between territories. The Central Bank of Ireland, for instance, already requires authorised credit institutions to return quarterly COREP templates.

    FINREP Latest EBA timetable has FINREP implementation scheduled for 1 July 2014, but as with COREP application across the EU currently varies. In Ireland the CBI already requires submission of quarterly FINREP reports.

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    How do the new rules involve XBRL?

    The EBA has developed XBRL taxonomies for both COREP and FINREP to allow delivery of the respective standard reporting templates in XBRL.

    As with other aspects of implementation there has been varied adoption so far across the EU, with Ireland's CBI, for instance, already accepting returns in XBRL and the UK's FSA expected to follow suit in 2014.

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    How can Arkk assist with COREP/FINREP reporting?

    Arkk's XBRL software can produce XBRL reports direct from the EBA's own standard Excel tamplates at the click of a button, ready for submission to your local regulatory body.

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    What is Solvency II?

    Solvency II is the name given to a fundamental overhaul of the EU regulations governing the European insurance industry.

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    When will the new rules come into effect?

    The current timetable is:

    30 June 2013 - deadline for all implementation arrangements to have been finalised by supervisory bodies

    1 January 2014 – date Solvency II rules come into effect for all parties affected

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    Which businesses will the rules affect?

    Solvency II will apply to all insurance firms with either annual gross premium income exceeding €5m or gross technical provisions in excess of $25m, as well as all Lloyd’s syndicates. Subsidiary entities bound to report for purposes of group compliance will also be affected.

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    How do the new rules involve XBRL?

    The culmination of the new compliance regime will be the reporting of capital and risk information. For this purpose the EIOPA has developed the Solvency II XBRL taxonomy which will allow submitters to deliver marked-up reports.

    Details regarding the mandatory XBRL requirements for Solvency II reporting are yet to be finalised.

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    What is the Carbon Disclosure Project?

    The CDP is a London-based NGO that collects and reports carbon emission, water usage and climate impact data for thousands of the world’s largest companies, as well as the majority of its most populous cities.

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    Is CDP reporting mandatory?

    Reporting obligations vary between national jurisdictions, but CDP reporting is currently on a largely voluntary basis.

    In June 2012 the UK Department for Environment, Food and Rural Affairs announced that from April 2013 all businesses listed on the Main Market of the LSE will be obliged to report their emissions data, expanding to all large companies from 2016.

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    How does this involve XBRL/iXBRL?

    The CDP holds the largest collection of self-reported climate-change information in the world. With a view to tapping into the data-handling advantages of XBRL the NGO has developed a climate-change reporting taxonomy (along with the Climate Disclosure Standards Board) that should ultimately pave the way towards full XBRL/iXBRL reporting.