The transition to iXBRL (inline eXtensible Business Reporting Language) technology has enabled HMRC (Her Majesty’s Revenue and Customs) to validate the contents of accounts and tax computation statements, a feature that was not possible with the previous PDF attachments.

This shift to iXBRL has introduced new validation messages that one might come across while filing the statements. The most common rejection messages from HMRC occur due to the following reasons:

• Business validation errors
• Information within the accounts or computations that does not match information in CT600
• Mandatory tags missing
• Inconsistent duplicate facts
• Item not being dimensionally valid
• Malformed xml
• Invalid content was found starting with element ‘uk-bus:EntityCurrentLegalOrRegisteredName’
• Invalid content was found starting with element ‘xbrli:period’
• Numeric item tagged more than once

Companies can run their .xml file through HMRC gateway after ensuring the above errors are corrected in their files.

The filer should also ensure:

• The information in CT600 matches with the information in Accounts and Tax Computation (E.g. Company Name, Registration Number, Periods etc.,)
• The files are attached properly in CT600 (Accounts file to be attached in accounts slot and computations file in the computation slot)
• The correct file format is attached (.htm file will be rejected)

DataTracks UK is a leading provider of XBRL services to Accounting Firms and Businesses. DataTracks (www.datatracks.co.uk) provides iXBRL Managed Tagging Services to help companies convert their financial statements and tax computations to iXBRL format for filing with HMRC. All DataTracks services are provided through an easy to use e-commerce portal. User can register, create entities, place orders, pay, upload files and download iXBRL output when ready. DataTracks developed its XBRL conversion software in-house, and was designed to support roll forward. As a result, clients are assured of consistency in tagging to their iXBRL documents and conforming to the latest taxonomy.

To find out more about DataTracks, visit www.datatracks.co.uk or send an email to enquiry@datatracks.co.uk

The views expressed are that of the author’s and DataTracks is not responsible for the contents or views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person or organization, please alert us at ceo@datatracks.co.uk. We will take immediate action to correct any violation.

The Institute of Chartered Accountants of England & Wales (ICAEW) is one of the largest professional accountancy bodies operating in Europe. It has more than 118,000 members. The Institute operates under a Royal Charter, and provides accreditation to desiring professionals through a robust evaluation process. This accreditation is considered to be a prestigious professional qualification.

The ICAEW has recently launched an initiative to evaluate and recognize XBRL service providers and software vendors. DataTracks UK is the first service provider to secure accreditation from ICAEW.

What does the accreditation process involve?

The accreditation process involves an independent evaluation of the software/service provider’s offering by ICAEW representatives. The evaluation focuses on:

a.Compliance of the software/service to the laid down guidelines
b.Quality of support offered by the software/service provider

What does successful accreditation indicate?

When a solution provider’s software/service is accredited by ICAEW, it confirms that the service provider follows a well-defined process by which the software/service is provided to end customers. In case of service providers who use software to deliver their services to customers, ICAEW evaluates both the service delivery process as well as the quality of the software used for this purpose. In such instances, the accreditation represents a stamp of quality on both the service and the software used.

What does it mean for companies?

Organizations subscribing to these services would have the comfort that the solution provider is capable of meeting their expectations on quality and support.

DataTracks UK is a leading provider of XBRL services to Accounting Firms and Businesses. DataTracks (www.datatracks.co.uk) provides iXBRL Managed Tagging Services to help companies convert their financial statements and tax computations to iXBRL format for filing with HMRC. DataTracks is the first managed iXBRL services provider to have been awarded ICAEW accreditation. All DataTracks services are provided through an easy to use e-commerce portal. User can register, create entities, place orders, pay, upload files and download iXBRL output.

To find out more about DataTracks, visit www.datatracks.co.uk or send an email to enquiry@datatracks.co.uk

The views expressed are that of the author’s and DataTracks is not responsible for the contents or views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person or organisation, please alert us at ceo@datatracks.co.uk. We will take immediate action to correct any violation.

Companies registered in the UK are required to file their accounts with Companies House, while all businesses (not just companies) are required to do the same with HMRC, along with their tax returns. Companies are therefore required to submit the same information to two different authorities. HMRC maintains a joint filing accounts template that is meant for small audit exempt companies. When these companies fill up the accounts, data gets filed with both the government departments electronically.

In 2006, Lord Carter’s report recommended that HMRC and Companies House work together to provide a joint filing system. In 2011, HMRC mandated iXBRL filing for all business entities. Since then, both departments have been working closely to arrive at a single platform to accept iXBRL documents.

Below are some of the key differences in XBRL filing with HMRC and Companies House:

i. Requirement:
While it is mandatory for most of the business entities in the UK to file their accounts and tax computations in iXBRL format with HMRC, Companies House has not yet made it mandatory. It accepts voluntary filings.

ii. Format:
While HMRC accepts only iXBRL format, Companies House currently accepts iXBRL and XBRL formats. This is likely to get changed and aligned with what HMRC accepts.

iii. Number of files:
While HMRC may require two files (Accounts + Computations) in iXBRL format, Companies House requires only one – Accounts alone.

iv. Taxonomies:
HMRC’s filings involve three taxonomies (a) UK-GAAP, (b) UK-IFRS and (c) UK-CT. Companies House filings involve three taxonomies (a) UK-GAAP-AE, (b) UK-GAAP and (c) UK-IFRS. UK-GAAP-AE (Audit Exempt) is just a sub-set of the main UK-GAAP. In rare cases, HMRC does accept accounts prepared using foreign taxonomies like US-GAAP.

v. XML file:
Even though iXBRL joint filing has the same set of tagged information going to both the departments, they have different headers in their XML file.

vi. Validation:
HMRC validates and accepts all its filings through its gateway system. Companies House has its own validation gateway for voluntary filers.

DataTracks UK is a leading provider of XBRL services to Accounting Firms and Businesses. DataTracks (www.datatracks.co.uk) provides iXBRL Managed Tagging Services to help companies convert their financial statements and tax computations to iXBRL format for filing with HMRC. All DataTracks’ services are provided through an easy to use e-commerce portal. Users can register, create entities, place orders, pay, upload files and download iXBRL output when ready. DataTracks developed its XBRL conversion software in-house, and was designed to support roll forward. As a result, clients are assured of consistency in tagging to their iXBRL documents and conforming to the latest taxonomy.

To find out more about DataTracks, visit www.datatracks.co.uk or send an email to enquiry@datatracks.co.uk

The views expressed are that of the author’s and DataTracks is not responsible for the contents or views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk. We will take immediate action to correct any violation.

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB). The main objective of IFRS is to have one global set of accounting standards.

Adoption of an accounting standard is purely driven by decisions made by each country’s administration. IFRS is set to become the global standard for the preparation of public company financial statements. It is gradually replacing the existing region-specific accounting standards, popularly known as local GAAP.

Global picture

Currently, more than 120 countries around the world permit accounting practices that conform to  IFRS. More than 85 countries make it mandatory for companies toapply accounting and reporting methodology using IFRS. Among the popular regions to adopt IFRS are European Union (EU), Hong Kong, Australia, Russia, South Africa, Singapore, and GCC countries

IFRS in European Union

 All the listed EU companies are required to follow IFRS since 2005. Since the European Financial Reporting Advisory Group advises EU on financial compliance matters, EU IFRS might be different from the IFRS applied elsewhere.

IFRS in BRICS nations

IFRS in the United States

At present,in the United States, IFRS is not recognized. But, Securities Exchange Commission (SEC) has plans to implement IFRS to the listed corporations as early as 2015.

IFRS in the United Kingdom

In the United Kingdom, IFRS is mandatory for listed companies’ consolidated financial statements and is optional for other statutory filings.

To find more about DataTracks, visit www.datatracks.co.uk or send an email to enquiry@datatracks.co.uk.

The views expressed are that of the author’s and DataTracks is not responsible for the contents or the views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk.We would take immediate action to correct any violation.

XBRL statements are being prepared by companies once every quarter or every year depending on the regulatory requirements of each country. Updating an XBRL document for a new period requires four types of changes to be managed:
1. Changes in the columns of data being disclosed (Month to date, Quarter to date etc)
2. Changes in the rows of data being disclosed (new line items, etc)
3. Changes to taxonomy
4. Removal of extensions to taxonomy because of changes in taxonomy

A good XBRL preparation mechanism should incorporate a “roll forward” feature whereby a past financial statement (with its foot notes) could be used to create a template for the new period preserving as much of the data as is possible/necessary so that preparation for the new period is quick and easy.

The Roll forward feature enables carrying forward taxonomy elements used in the past period to represent current period tags.The benefits of roll forward in XBRL tagging are:

a. It ensures the consistency of tags used during the previous and the current XBRL filing period
b. Provides the users with the option of retaining previous period tags, or re-tagging financial facts against different taxonomy elements for the current period

Implementing roll forward calls for in depth knowledge of the taxonomy. When taxonomy changes take place, the roll forward process should ensure that:

a. Taxonomy elements used in previous period are retained to tag the corresponding facts for the current period.
b. Certain previous period elements are replaced with more appropriate taxonomy elements for current period.
Example: The current period fact is tagged with a child concept compared to the previous period where it was tagged with a higher-level concept, say, parent element. This change might happen due to additional disclosure provided in the financial report.
c. Additional taxonomy elements are tagged against new facts found in the current period source document.
d. Deprecated element tags (elements removed in the new taxonomy) from previous period are removed from the current period tags and relevant current year taxonomy elements are used.

Implementing roll forward in a tagging tool calls for expertise in two areas: accounting standards and software development. DataTracks’ iXBRL software supports the roll forward feature. When an entity or accounting firm outsources its iXBRL conversion, DataTracks will ensure that:

a. Current period and previous period facts are tagged to the same element, for cases where previous period filing was done in iXBRL
b. Customers are informed of any changes in tagging decisions that overrides previous period tags.
c. For first time iXBRL filers, current period facts alone are tagged

Customers can benefit from the roll forward process by providing DataTracks with the instance document of the previous year. If customers have used DataTracks services for previous period, DataTracks would automatically apply the roll forward procedure using their previous period file.

DataTracks UK is a leading provider of XBRL services to Accounting Firms and Businesses. DataTracks (www.datatracks.co.uk) provides iXBRL Managed Tagging Services to help companies convert their financial statements and tax computations to iXBRL format for filing with HMRC. All DataTracks services are provided through an easy to use e-commerce portal. User can register, create entities, place orders, pay, upload files and download iXBRL output when ready. DataTracks developed its XBRL conversion software in-house, and was designed to support roll forward. As a result, clients are assured of consistency in tagging to their iXBRL documents and conforming to the latest taxonomy.

To find out more about DataTracks, visit www.datatracks.co.uk or send an email to   enquiry@datatracks.co.uk

The views expressed are that of the author’s and DataTracks is not responsible for the contents or views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk. We will take immediate action to correct any violation.

XBRL (eXtensible Business Reporting Language) is an open technology standard for business reporting.  XBRL is based on XML (eXtensible Markup Language).  iXBRL (Inline XBRL) is a development over XBRL, where the key enhancement lies in the rendering of tagged facts encoded in an XBRL document.  XBRL and iXBRL standards exist with the same objective – seamless exchange of financial data.  The main advantage of iXBRL over XBRL is that iXBRL documents can be rendered directly by browsers and printers.  On the other hand, only specialized XBRL viewers can render XBRL documents.

Several countries across the globe have adopted XBRL as their standard for financial reporting.  However, UK is the only region in the world where iXBRL filing is mandatory.  In UK, HM Revenue and Customs (HMRC) requires businesses to submit their financial statements and tax computations in iXBRL format.

The key advantages of iXBRL include :

• Simple Filing Process: In certain regions, companies are expected to perform financial reporting in XBRL as well as HTML format for human readability.  For instance, Securities and Exchange Commission (SEC) US, currently enforces financial report filing on HTML as well as XBRL formats.  This makes it a two-step process.

iXBRL adoption makes financial reporting a single step process.  The same iXBRL file lends itself to machine as well as human readability

• Simple Change Management: The filing process described above has another drawback when changes need to be incorporated in the files.  Content changes need to be replicated in two files.

iXBRL makes change management simpler.  Since there is only one file to be updated for changes, it is less time consuming, and less prone to errors.

• Readability:  One of the important drivers for XBRL adoption is to enforce machine readability of financial data.  However, it is preferable that such machine readability is achieved without any compromise on human readability of the same data.

iXBRL achieves the dual objective of making financial data machine readable as well as human readable.  The iXBRL file submitted for filing with HMRC lends itself to computer-readability, as well as human readability by people on-screen or in printed form.

The benefits of iXBRL have prompted Ireland to consider this as their standard for financial reporting.  SEC is also considering adoption of iXBRL, as mentioned in an article by Tammy Whitehouse in Compliance Week, May 14, 2012 ^[1]

Preparation of iXBRL files is a little more complicated when compared to preparation of XBRL files.  However, this additional effort is insignificant compared to the effort involved in maintaining two versions of the same report.  This is one of the main reasons that prompted HMRC to adopt iXBRL over XBRL.

DataTracks UK is a leading provider of XBRL services to Accounting Firms and Businesses.  DataTracks (www.datatracks.co.uk) provides iXBRL Managed Tagging Services to help companies convert their financial statements and tax computations to the iXBRL format.  All DataTracks services are provided through an easy to use e-commerce portal.  User can register, create entities, place orders, pay, upload files and download iXBRL output when ready.

To find out more about DataTracks, visit www.datatracks.co.uk or send an email to   enquiry@datatracks.co.uk

The views expressed are that of the author’s and DataTracks is not responsible for the contents or views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk. We will take immediate action to correct any violation.

Source :

Tammy Whitehouse, Compliance Week, 14^th  May 2012

http://www.complianceweek.com/sec-explores-option-for-2-in-1-filing-method/article/240994/

The past year has witnessed the marketplace for iXBRL services boom with a number of service providers vying for consumer attention since the introduction of the HMRC’s mandate. DataTracks has been at the forefront of the market, providing services to a large number of accounting firms and companies, since its launch last April 2011.

During the course of the first year of iXBRL filings, DataTracks had successfully served a mix of accounting firms as well as individual companies for their iXBRL conversion requirements.  A web portal has been used as the point of focus to effectively engage with customers on their iXBRL tagging requirements.  The customers are directed to this portal, to sign up for iXBRL conversion services.  Upon sign-up or registration, customers are invited to add entities, place their orders online, pay and upload their files.  Once the source files have been converted into iXBRL format, customers are then directed to log on to the site ,to download the final output.  The DataTracks portal has proved to be a robust e-commerce solution for iXBRL services, thanks to its simplicity, security and ease of use.

The data consolidated by DataTracks over the course of the year provides key insights to the dynamics of the iXBRL market in the UK.  This post captures these insights in a concise manner.

Service Distribution

DataTracks has served iXBRL conversion requirements from two categories of customers – Accounting Firms and Individual Businesses.  The pie chart below captures the percentage distribution of DataTracks’ customers between these two categories.

Individual businesses form a significant chunk of DataTracks’ customer base.

Geographical Distribution

DataTracks’ customers are spread across the geography of England.  However, a major customer base of about 40 % is concentrated in the London and South East England area.  This trend is in line with the fact that about 40 % of businesses in UK are located in the same area.

Peak Periods for iXBRL Conversion

The peak periods of iXBRL filing include the months of December and March.  This is evident from the trend observed in the volume of work signed up through the DataTracks portal.

Satisfaction Levels

DataTracks conducted an online survey in December 2011 among its customers.  The objective of the survey was to measure satisfaction levels on the following parameters:

• Overall Satisfaction
• Quality of output
• Timeliness
• Issue Resolution
• Accessibility of Resources

DataTracks recorded a satisfaction level of over 94 %, measured individually across all the parameters.

The high satisfaction levels recorded in the survey can be attributed to two major factors:

• The robustness of the DataTracks portal
• The quality of DataTracks’ resources, involved in delivering services to the customers.

DataTracks believes that its online presence has contributed immensely to gaining visibility in the iXBRL services market in the UK.  The stage is now set for DataTracks to build on the base established in the past year.

To find out more about DataTracks, visit www.datatracks.co.uk or send an email to   enquiry@datatracks.co.uk

The views expressed are that of the author’s and DataTracks is not responsible for the contents or views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk. We will take immediate action to correct any violation.

XBRL (eXtensible Business Reporting Language) is an open technology standard for financial reporting, based on XML (eXtensible Markup Language). XML, in its original form, is a markup language that defines the manner in which the documents can be encoded, making them human-readable as well as machine-readable. XML is primarily used in encoding documents and other arbitrary data structures for exchange over the Internet/World Wide Web. XBRL is an XML based, open, market-driven, global standard for encoding semantic information, like those found in financial statements of organizations. Many countries along with their respective financial regulators, have together promoted the adoption of XBRL as a universal electronic financial reporting mechanism.

iXBRL (Inline XBRL) is a development of XBRL, where the main enhancement is centered around the electronic rendering of financial information encoded in an XBRL document. If the focus of XBRL is on automated machine readability of data, iXBRL focuses on rendering such data. Technically, iXBRL documents are generated from well-formed XML documents. While XBRL documents can be viewed only with specialized XBRL viewers, iXBRL documents can be viewed on standard browsers.

Essentially, both XBRL and iXBRL standards exist with the same objective – seamless exchange of financial data. iXBRL goes a step further, to enable the rendering such data in a visually appealing format.

The table below gives a comparison between the various parameters of iXBRL and XBRL :

There are two main ways of producing iXBRL documents:

1. A program can generate the iXBRL file from a given source data
2. A word processing package which is enhanced to handle the XBRL tags

As on the date, UK is the only region where iXBRL filing is mandatory. In the UK, HM Revenue and Customs (HMRC) requires businesses to submit their reports, accounts and tax computations in iXBRL format when filing their Corporation Tax return. Businesses and their agents can use HMRC’s Online Filing software to prepare their reports, accounts and tax computations in iXBRL format or they can prepare the iXBRL files by themselves and submit them to HMRC.

To find more about DataTracks, visit www.datatracks.co.uk or send an email to enquiry@datatracks.co.uk.

The views expressed are that of the author’s and DataTracks is not responsible for the contents or the views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk.We would take immediate action to correct any violation.

With the increasing number of iXBRL tagging service providers in the industry, it becomes vital that companies and accounting firms choose the right iXBRL tagging service provider.

Here are some tips on how you should decide on an iXBRL managed tagging service provider:

1. Track record
Does the Managed tagging service provider have prior experience in providing high volume/high accuracy/technology driven services?(DataTracks has prior experience in handling high volume and deliver with utmost quality)

2. Reserving capacity
Does the Managed Tagging Service Provider require prior planning of capacity to protect the quality of service? (DataTracks insists on accounting firms and other big clients providing reasonable forecast to ensure the right number of people are hired and trained. Quality resources cannot be created overnight).

3. Quality Assurance
Can the Managed Tagging Service Provider demonstrate a tiered quality review process, with separate visual, process and accounting checks?(As tagging is subjective there should be a clear escalation process for difficult decisions, with the client being informed of ‘controversial’ tagging decisions in a structured way. DataTracks has these processes in place and is accredited with ISO 9001:2008 certification for quality management system).

4. Alterations Process
Does the Managed Tagging Service Provider acceptunlimited and frequent changes with a quick turn-around process? (DataTracks offers unlimited number of changes with short turnarounds at no extra cost).

5. Data Security
Does the Managed Tagging Service Provider protect your data? (DataTracks UK hosts your data in a high quality data centre in the UK and has a strong ISO 27001:2008 accredited information security management in the delivery centres (of its parent DataTracks) it uses to prepare the iXBRL documents)

6. Cost
Does the Managed Tagging Service Provider offer a significant saving? (DataTracks does).

DataTracks provides iXBRL managed tagging service to help you convert your financial statements and tax computations to the iXBRL format. You will need to

• Register as user
• Create entities
• Place an order
• Pay online
• Upload files and
• Download files when ready

To find more about DataTracks, visit www.datatracks.co.uk or send an email to enquiry@datatracks.co.uk.

The views expressed are that of the author’s and DataTracks is not responsible for the contents or the views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk.We would take immediate action to correct any violation.

As we enter the peak season of iXBRL filing in the United Kingdom, there is a buzz of activity in the market around companies, accounting firms along with iXBRL software and service providers.

While a good number of accounting firms have already chosen an iXBRL solution, a very large number of companies are yet to decide on how to get the iXBRL statements.

We have already observed a surge in our business volume because a majority of companies have preferred to go with our self-service portal (www.datatracks.co.uk) where users can sign up, upload documents and place orders for conversion.

We have successfully converted more than 3,000 statements till date for filing with HMRC. Based on our experience so far, here are a few tips on how to avoid errors while filing your iXBRL accounts and tax computations with the HMRC.

1. When you provide inputs to us, ensure that the Company number in the documents you send us is identical to that in your tax software.

2. When you receive our iXBRL output package as a zipped folder, do not open individual files directly from the zipped folder. Save the zipped folder into your hard directory and extract each of the output files (iXBRL instance document, Microsoft Word document and Microsoft Excel document).

3. When you file your CT600 return,

a. Make sure that the following data are “identical” in your CT 600 return, in your financial statements and in your tax computations:
i. Company number
ii. Start date and end date of period of tax return

b. Make sure all mandatory information are duly filled in:
i. Company number (Not applicable for a few entity types)
ii. Date of Directors’ report
iii. Date of Auditor’s report
iv. Date of approval of accounts
v. Name of Director signing the Directors’ report and approving the accounts

c. Make sure you attach each of the files in the designated filed before you submit your return.

You can use our “fully managed services” (where we prepare the iXBRL document for you after receiving your inputs) by doing four simple steps:

1. Register as a user in www.datatracks.co.uk
2. Setup entities
3. Upload financial statements of each entity and pay
4. Download the output, once the files are ready.

To find more about DataTracks, visit www.datatracks.co.uk or send an email to enquiry@datatracks.co.uk.

The views expressed are that of the author’s and DataTracks is not responsible for the contents or the views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk.We would take immediate action to correct any violation.

There are two myths about conversion of financial documents into iXBRL format.

Myth 1: it is simple.
Myth 2: It is complex.

The first reaction of most companies is to try and prepare the iXBRL statements in house using an accounts preparation software or an accounting software. This is probably easy if your financial statements are simple in structure and have a predictable set of notes to explain the numbers. A one time investment in the software and a limited investment of time and money in acquiring the know how should help a company in managing its obligations to HMRC in filing financial statements accompanying a corporate tax return in iXBRL format.

On the other hand, if your financial statements are not simple; and you have a reasonable number of foot notes that go into the financial statements then you (or your accounting/tax advisor) have a few choices:

1. Buy an expensive XBRL tagging software and invest in training people
2. Use a vendor who specializes in converting your financial statements into iXBRL format for a fee.

Most companies prefer to use an outside vendor (such as DataTracks) for several reasons:

1. It is a “once in a year” exercise; not a frequent task.
2. It is not “core” to your business. Acquiring and retaining expertise in this is a waste of your precious time and money.
3. Outside vendors have far better expertise in associating your financial statements with the right set of elements in the GAAP taxonomy. Your obligations to HMRC are better served by that expertise.
4. You would be surprised at how inexpensive this is against the alternative of investing in:
a. Software
b. Acquisition of knowledge by your in house resources
c. Retention of those resources over a period of time
d. Opportunity cost of your key resources staying focused on what is essentially not core to your business.

In a recent survey conducted by us (where a lucky participant won an iPad 2), participant opinions tended to vary. A majority of the opinions expressed included:

1. The exercise often requires new staff to be hired, which increases costs.
2. In reality a disproportionate time is diverted to handle iXBRL related work.
3. Qualified accountants are forced to handle this work instead of high yield billable work.
4. Companies are unsure about the accuracy of iXBRL tagging and compliance with HMRC requirements as there is too much dependence on software.
5. One has to invest time in ensuring the software and the taxonomy are kept up to date.
6. The disadvantages could increase when HMRC moves to using the full taxonomy of UK GAAP instead of the limited set being used today.
7. The disadvantages could increase when Companies House mandates submission of financial statements in iXBRL format.

To avoid these disadvantages, companies prefer to use specialist vendors who have expertise in preparing XBRL statements. They look to “managed tagging service providers” such as DataTracks who are:

1. reliable,
2. easily accessible all the way until the filing is done
3. capable of exercising professional judgment in associating your financial data to the right set of tags (or elements in the GAAP taxonomy)
4. capable of doing this for a lower cost

A few thousand companies have chosen DataTracks, a iXBRL managed tagging services provider.
Reasons:
1. DataTracks are global experts in preparation of financial statements in XBRL or iXBRL format in various countries including US, UK and India.
2. DataTracks has a track record of having produced at least 60,000 statements in formats required by regulators worldwide (including ASCII, HTML and XBRL formats)
3. DataTracks’ service model is simple.
a. You register as a user in www.datatracks.co.uk
b. You set up entities
c. You upload financial statements of each entity and pay
d. After DataTracks informs you that your output is ready, you download the output.
e. DataTracks provides additional documents in Word or Excel format to help you review the appropriateness of tags.
f. If you or your advisors want to change any tag, you just need to send an email.
g. For no extra cost DataTracks will keep providing you modified versions as many times as you want until your filing is successful.

To find more about DataTracks, visit www.datatracks.co.uk or send an email to enquiry@datatracks.co.uk.

The views expressed are that of the author’s and DataTracks is not responsible for the contents or the views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk.We would take immediate action to correct any violation.

In the beginning there was euphoria when we learnt of the HMRC initiative to collect financial statements and tax computations in iXBRL format. You don’t get an opportunity to address a new market with such a large size.

The euphoria was followed by anxiety. How do we address such a large market spread across multiple locations in the United Kingdom.

We decided in favour of a self-service internet portal model where users can sign up, upload input documents and place orders for conversion.

It is a lot easier to adopt this model for selling, say books. How do we use this model for providing a “knowledge based” service where the client may want the output to be modified a few times (based on better knowledge of facts or a better opinion on what is appropriate classification for any piece of financial data)?

We made it widely known that clients can come back to us as many number of times and as frequently as they want to get changes incorporated in the output. We provided the email addresses to which they can communicate. We provided the phone numbers they can reach us at.

The last six months have shown that both companies and accounting firms have adapted to the business model of ordering and using knowledge based services through internet. We have processed more than 1,500 returns as of date and it is gratifying to know that the model works.

Based on our experience so far, here are a few tips on how to use DataTracks so that you get a high quality output.

1. Make use of price concessions. You get a lower price if you provide a longer turnaround time than a shorter turnaround time. You get a lower price if you avoid peak season (Nov, Dec, and Feb).

2. Provide your financial statements (and tax computations) in Microsoft Word or Microsoft Excel. Though we can accommodate inputs in PDF format, you can avoid even the very minor risk in translation of your inputs into a format readable by our iXBRL tagging tool.

3. If you plan to provide your financial statements (and tax computations) in Microsoft Excel, please provide in one worksheet with all content fit within set page width displaying page breaks. Do not use multiple worksheets and do not let content spread beyond the width boundaries of a page. Since iXBRL instance document would have to have the same look as the input, we may have significant difficulties in converting content spread across multiple sheets or exceeding standard page widths into a consistent and visually elegant iXBRL document. In other words, send us a printable input; not working papers.

4. Get your information right. Ensure the company registration number and company name are exactly as in HMRC records. The company name, number etc that you fill in your CT600 return to HMRC should be “identical” to what you provide us to avoid rejections due to mismatch when you attach the iXBRL instance document to your CT600 return. We trace a substantial part of the validation rejections to this simple error. Even an unintended space in the name can get your filing rejected by the algorithms adopted by HMRC.

5. Make sure all the mandatory information is provided. The names of the directors signing the director’s report, the date when it is approved, the names of the officials approving company financial statements, the date they are approved are important.

6. Ensure you indicate the taxonomy (UK GAAP, UK Charities, IFRS,IFRS Banking) to be used in generating the iXBRL instance document. If you do not indicate, we would presume UK GAAP taxonomy is applicable.

7. If you are uploading group financial statements, indicate the schedules and notes that relate to the group company (and not to the consolidation of the group company and its subsidiaries) clearly. Send an email to us if necessary giving the details. Do not forget to quote the job number in the email.

8. Do not be surprised if the tag we have chosen is not acceptable to you. Choosing the right tag depends upon facts of the case and accounting judgment. You know your facts far better than we do. In the end your accounting judgment prevails. Just send us the corrections by an email to our Customer Care address (customercare@datatracks.co.uk) quoting the job number. We will incorporate the changes and send you a revised output for filing with HMRC. We are happy to execute as many changes as you desire at no extra cost.

9. When you submit your CT600 form with HMRC, make sure the header information (Company name, Company registration number, start and end period of the financial statements) are exactly the same as in the financial statements (and tax computations) sent to us for tagging.

If you need any other help, we are just a call away.

The iXBRL deadline has come and gone. We are now past 1 April 2011 and quite a few companies have already filed their corporation tax returns and related financial statements electronically with HMRC in iXBRL. A good number of companies still have to get their financial statements tagged in the iXBRL format.

The HMRC have also adopted a ‘soft landing’ period for the first two years of the iXBRL filing. They have also stated that they will not issue penalties or reject returns if businesses have made reasonable attempts to submit iXBRL accounts. We believe that it is probably best for companies to get it right the first time and not rely on the soft landing period.

The HMRC have experienced a few teething issues with iXBRL filing. As discussed by Rachael Singh in a recent Accounting Age article1, the HMRC free tool had a 94% success rate of iXBRL corporation tax returns filed and there was a 65% success rate by using all other commercial software. The most common error was the re-submission of a return that had already been filed successfully.

Companies, who had filed before the 1 April 2011 deadline, now have a far better insight into the options available for iXBRL based on feedback from the market. The feedback suggests that the following important questions should be asked before a solution is decided upon

• Tagging accounts requires accounting expertise. It is not a clerical process. Do they have sufficient surplus qualified staff?
• By its nature this task tends to be annual. Can they cope with a skewed demand for this work with an in-house resource?
• How will they ensure that expertise is carried from one annual exercise to the next?
• Have they assessed the full cost of an in-house solution, including software maintenance, training, manpower, supervision, review and rework?

The options available are:
1. Using the HMRC free tool
2. Using an Accounts Production Software
3. Using a Tagging software
4. Using a Managed tagging service provider or Outsourcing

Companies House on the other hand is expected to mandate iXBRL filing of financial statements by 2014. As discussed by Paul Booth of ICAEW2, Companies House continue to encourage voluntary iXBRL filing of accounts in the hope to make better progress with online filing without the distraction of mandatory filing.

It is widely accepted that iXBRL is here to stay, so following an initial rush to action many are re assessing their approach in the light of experience. Firms and companies are focusing on ensuring their solutions are sustainable, reliable, and affordable in the long term. As a result many are finessing their approach (for example establishing a fallback for business continuity), and in some cases even changing tack entirely.

If you are reviewing your approach or solution we suggest that you may find the flexibility offered by the DataTracks pay-as-you-go outsourced solution helpful. DataTracks is an economic, convenient and reliable main solution, but it also works very well as a fallback or peak period solution.

Contact our local sales team on how DataTracks (iXBRL managed tagging service) can help you with iXBRL. Email enquiry@datatracks.co.uk or visit http://www.datatracks.co.uk/ for more information.”

“The views expressed are that of the author’s and DataTracks is not responsible for the contents or the views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at ceo@datatracks.co.uk. We would take immediate action to correct any violation”.

Source
1: Rachael Singh , Accounting Age, 6th June 2011
http://www.accountancyage.com/aa/news/2077389/hmrc-software-ixbrl-filing#ixzz1ThzUQyce
2: Paul Booth, ICAEW, 27th June 2011 http://www.ion.icaew.com/itcounts/22622