It now known world over that the acceptable language in the word of financial reporting and tax compliance is the XBRL and the iXBRL – (in-line) eXtensible Business Reporting Language. It has become the internationally used standard in exchanging information through electronic medium. Often used tax or accounting concepts use particular labels that make information easily readable by humans and machines alike.
In Ireland and the UK, this language has been in use to submit financial reports and statements relating to Corporation Tax (CT1) filing for a few years now through the Revenue Online Service (ROS)
However, there has always been a need to periodically update information and comply with new rules in order to stay within accepted grounds and ensure that there is no data missing or lost. Taxonomy and the intricacies of the correct label have been one such area where detailed supervision has to be maintained. For instance, the label IE GAAP could be used only in accounts pertaining to the year 2014 and not after.
The conundrum always remained though, about overcoming the subtle differences in accounting between the two island sister countries – UK and Ireland. There was no specific taxonomy introduced for Ireland in particular, which was creating a roadblock in compliance reporting. The Irish Revenue Commission faced problems isolating Irish Corporation Tax returns for their use.
Hence, as of 2019, the Financial Reporting Council (FRC) released the Irish extension of the 2019 taxonomy suite. Through this, Irish accounts could be labelled and tagged electronically, supporting the Irish Commissioners need for IXBRL statements in order to monitor Corporation Tax returns. This extension is a viaduct that will help traverse the differences in reporting between the UK and Ireland. The extension has also been equipped with the Detailed Profit and Loss within FRS 101, FRS 102 and EU IFRS facilitating the submission of a detailed Profit and Loss statement tagged accordingly. It also aims to aid users with specific taxonomy for mandatory disclosures that are a requirement for the Irish Revenue Commission. The FRC has also given an e-mail ID – firstname.lastname@example.org for users to reach out in case they observe any issues in the extension provided.
The list of acceptable taxonomy and versions may undergo changes over time, on the basis of changes to the accounting frameworks in operation in Ireland. It is desirable for all stakeholders to make use of new taxonomies at the earliest opportunity. This can ensure that key Financial Statements are labelled using the correct taxonomy aligned to the appropriate accounting framework under which they are produced. Accordingly, as new taxonomies become available, a schedule for the adoption of each new taxonomy will be determined and the withdrawal of old taxonomies on a case-by-case basis will be under way, giving reasonable time for stakeholders to update their software and practices.
In any case, it may help to have a set of experts who have an in-depth knowledge on the details of compliance and procedures handy, to help navigate these waters. Data Tracks provides all the assistance required with regards to this. Get in touch with us today!