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Paul booth nov implementing xbrl pb setting the scene






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Paul booth nov implementing xbrl pb setting the scene Presentation Transcript

  • 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 [email_address] Further information available