1. Dr Paul Booth
Technical & Development Manager, IT Faculty
SETTING THE SCENE

2. The story so far
• XBRL is all about tagging
• … but the tags are
electronic
• A bit like a bar code
• … for financial reporting
concepts

3. A bit like a bar code …
• But instead of tagging a tin
of beans
• … we’re tagging an item in
a set of accounts

4. But what’s this ‘i’?
• iXBRL = Inline eXtensible
Business Reporting Language
• It’s still XBRL – same tags etc
• … but the ‘i’ bit means that
human eyes can read it too

5. Lots of applications of XBRL
• … but it’s HMRC’s impending requirement that is
concentrating minds.
• CT filings submitted after 31 March 2011 for year-ends after
31 March 2010 must be done online, using iXBRL for
– Accounts
– Computations
• Today we’re focusing mainly on the accounts. The tax
computations bit is relatively straightforward.

6. How do we make the iXBRL?
• Wide range of methods
• But many software products not yet publicly
available
• … in some cases, even though they are
‘recognised’ by HMRC
• Which method is best depends on circumstances:
who you are, what you do, existing methodology,
business priorities, etc.

7. Year-end Accounts Production and Filing
Bookkeeping Year-end accounts Filing

8. Some scenarios …
… but they come with a health warning
… and not pretending to be
comprehensive
I’m not necessarily describing anyone
who’s here
The ‘best’ solution for your practice/business
could depend on many factors

9. Scenario 1: just one simple filing
• One single, simple business. Just one filing per year. (Or
possibly a practice with a very small number of client filings.)
Likely
Possible solution: HMRC’s free product
• Does the whole filing: accounts, comps, CT600
• But it’s limited: suitable only for ‘smaller companies … with less complex tax affairs
• A bit slow and clunky.

10. HMRC’s free product
Bookkeeping
Type into a form
iXBRL filing
accts
comps
CT600

11. Scenario 2: already using AP software
• Practice doing filings for several clients and using established
accounts production software product.
Likely
Possible solution: Use your AP supplier’s iXBRL-
enabled product
• For many sets of accounts, could be as simple as clicking the new ‘iXBRL output’ button.
• But make sure your supplier is releasing an upgrade, and on time.
• Accounts that depart from standard template may need extra work.

12. Accounts Production Software
Bookkeeping Year-end accounts
+ other adjustments
and inputs
Software adds XBRL tags
Tagged
accounts

13. Scenario 3: currently use Word/Excel
• Practice with several clients, or business with several
subsidiaries – multiple filings to do
Likely
Possible solution (a): get iXBRL-enabled AP
software
• May be more efficient in the long term
• But significant change to existing processes

14. Scenario 3: currently use Word/Excel
• Practice with several clients, or business with several
subsidiaries – multiple filings to do
Likely
Possible solution (b): use post-production
converter/tagger or outsourced iXBRL service
• No disruption to your existing processes
• But you have an extra task at the end of those processes
• … or you have an extra expense and supplier to manage

15. Post-production tagging
Bookkeeping Year-end accounts
No change in present process
Extra process
Extra process
Tagged
accounts
Software adds
XBRL tags

16. Scenario 4: currently do both book-
keeping and accounts prep/tax filing
• … whether in business or in practice
Likely
Possible solution: use ‘end-to-end’ software that
does it all, or two closely integrated products
• Probably the greatest potential efficiency gains
• But probably the biggest disruption to existing processes

17. ‘End to end’ software
Bookkeeping Year-end accounts
Single software product does
both bookkeeping and AP
Tagged
accounts
… and adds XBRL tags

18. Scenario 5: currently do tax filings but not
final accounts preparation
• … taking the final accounts as a ‘given’, from the client or
from client’s other adviser
Likely
Possible solutions (a) get A N Other to supply an
iXBRL file; (b) get them to supply a Word file and
use post-production converter or outsource
• Not necessarily your problem
• Make sure you are given the correct accounts

19. The ‘soft landing’
• HMRC say ‘sympathetic
approach’ to penalties in first
two years
– Reasonable Excuse
– Reasonable Care
• In the first two years, we can
use a smaller ‘dictionary’ of
tags
– Not everything in accounts will
need to be tagged.

20. Don’t panic!
• XBRL page: www.icaew.com/xbrl
• HMRC’s ‘recognised’ list: www.hmrc.gov.uk/efiling/ctsoft_dev.htm
• Implementing XBRL publication soon on www.ion.icaew.com/itcounts
Paul Booth
IT Faculty
020 7920 8476
paul.booth@icaew.com
Further information available