XBRL (eXtensible Business Reporting Language) and Related Taxonomies
Effective dates: |
A) Canadian securities laws do not require companies to prepare financial statements using XBRL, but they may do so voluntarily. B)The SEC requires Foreign Private Issuers, including MJDS filers, that prepare their financial statements in accordance with IFRS to begin filing their financial statements in XBRL format starting with their first annual report on Form 20-F or Form 40-F for the fiscal period ending on or after December 15, 2017 C) On May 29, 2019, the European Commission has published a regulation requiring all listed companies across the European Union to submit their annual financial statements digitally as Inline XBRL documents from January 1, 2020 onwards. |
Overview
XBRL (eXtensible Business Reporting Language) is an XML-based computer software language that is developed specifically for the automation of business information requirements, such as the preparation, sharing and analysis of financial reports, statements, and audit schedules. XBRL labels companies' financial and other data with codes from standard lists (taxonomies) so that investors and analysts can more easily locate and analyze desired information. XBRL makes the analysis and exchange of corporate financial information easier and more reliable by allowing data to be extracted and processed automatically by XBRL-aware applications. XBRL is independent of any hardware platform, software operating system, programming language or accounting standard.
XBRL is a royalty-free, open specification for software being developed by a non-profit consortium consisting of leading companies, associations, and government agencies around the world.
The SEC has approved the IFRS taxonomy so that SEC registrants that prepare their financial statements under International Financial Reporting Standards can submit them to the SEC using XBRL.
On March 1, 2017, the SEC issued a notice that the IFRS taxonomy has now been published on the SEC’s website. While the existing XBRL rules would have required Foreign Private Issuers, including MJDS filers, that prepare their financial statements in accordance with IFRS to begin filing financial statements in XBRL format immediately upon publication by the SEC of the IFRS taxonomy, the SEC stated that those issuers may instead choose to begin filing their financial statements in XBRL format only starting with their first annual report on Form 20-F or Form 40-F for the fiscal period ending on or after December 15, 2017.
On May 29, 2019, the European Commission has published a regulation requiring all listed companies across the European Union to submit their annual financial statements digitally as Inline XBRL documents from January 1, 2020 onwards. The new European Single Electronic Format (ESEF) aims at improving accessibility and at making the information much more user-friendly. The move will also facilitate the availability of key financial information in all EU official languages. In support of these new rules, the European Securities and Markets Authority (ESMA) has prepared an ESEF Reporting Manual and ESEF taxonomy files to help companies in their preparation. The new provisions will be updated on a yearly basis to reflect possible updates to the International Financial Reporting Standards (IFRS) taxonomy, which aims to improve communication between preparers and users of financial statements.
By comparison, Canadian securities laws do not require companies to prepare financial statements using XBRL, but they may do so voluntarily. Only a very small proportion of Canadian companies have adopted this practice to date.
XBRL International
XBRL International is a not-for-profit consortium of approximately 550 companies and agencies worldwide working together to build the XBRL language and promote and support its adoption. The consortium members meet periodically in international conferences, conduct committee work regularly via conference calls, and communicate in email and phone calls throughout the week. Visit the XBRL Canada Web site.
CSA XBRL Voluntary Filing Program
The Canadian Securities Administrators (CSA) has established a program to allow issuers to voluntarily file their financial statements in XBRL format on SEDAR. It was launched in May 2007. The XBRL Filing section of the CSA website provides information about this voluntary XBRL program.
SEC Portal for XBRL Data Reporting Standards
The Securities and Exchange Commission (SEC) has established a portal for information about XBRL—part of the family of interactive data reporting standards required by the SEC. It provides links from the SEC website to sources of information about XBRL technology, as well as creating and submitting XBRL-tagged interactive data files in compliance with the Commission’s rules.
IFRS Taxonomy
The IASC Foundation has developed the XBRL taxonomy for IFRSs annually updated to reflect new or amended IFRS standards.
U.S. GAAP Financial Reporting Taxonomy
The FASB is responsible for the maintenance of the U.S. GAAP Financial Reporting Taxonomy applicable to public issuers registered with the SEC that prepare their financial statements in accordance with U.S. GAAP.
Recent developments
Date |
Development |
Comments |
March 2019 |
The IFRS Taxonomy 2019 is consistent with IFRS Standards as issued by the IASB at January 1, 2019 and includes changes to the IFRS Taxonomy 2018 such as: disclosure requirements in IFRS 13, Fair Value Measurement; and improvements including (1) the introduction of implementation notes and duration type elements, (2) the removal of entry points without documentation labels, and (3) other improvements. |
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May 2019 |
On May 29, 2019, the European Commission has published a regulation requiring all listed companies across the European Union to submit their annual financial statements digitally as Inline XBRL documents from January 1, 2020 onwards. The new European Single Electronic Format (ESEF) aims at improving accessibility and at making the information much more user-friendly. The move will also facilitate the availability of key financial information in all EU official languages. In support of these new rules, the European Securities and Markets Authority (ESMA) has prepared an ESEF Reporting Manual and ESEF taxonomy files to help companies in their preparation. The new provisions will be updated on a yearly basis to reflect possible updates to the International Financial Reporting Standards (IFRS) taxonomy, which aims to improve communication between preparers and users of financial statements. |
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June 2019 |
FASB adds taxonomy entry points to address FAST Act updates in the 2019 DEI Taxonomy |
On June 11, 2019, the FASB announced that the U.S. Securities and Exchange Commission (SEC) has issued the 2019 Document and Entity Information (DEI) Taxonomy. In connection with the issuance of the 2019 DEI Taxonomy, the FASB has incorporated additional entry points for the 2019 GAAP Financial Reporting Taxonomy and the 2019 SEC Reporting Taxonomy (SRT) to facilitate use of those Taxonomies by constituents. |
December 2019 |
FASB Releases 2020 Taxonomies for U.S. GAAP and SEC Financial Reporting |
On December 20, 2019, the Financial Accounting Foundation (FASB) released the 2020 U.S. GAAP Financial Reporting Taxonomy, the 2020 SEC Reporting Taxonomy, and the 2020 XBRL U.S. Data Quality Committee (DQC) Rules Taxonomy (DQCRT). |
March 2020 |
On March 17, 2020, the IFRS Foundation issued its 2020 IFRS Taxonomy. The IFRS Taxonomy is a translation of IFRS Standards into XBRL (eXtensible Business Reporting Language). The IFRS Taxonomy 2020 is consistent with IFRS Standards as issued by the IASB at January 1, 2020, including those issued but not yet effective. |
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December 2020 |
On December 17, 2020, the Financial Accounting Standards Board (FASB) released the 2021 U.S. GAAP Financial Reporting Taxonomy, the 2021 SEC Reporting Taxonomy, and the 2021 XBRL U.S. Data Quality Committee (DQC) Rules Taxonomy (DQCRT). The 2021 U.S. GAAP taxonomy reflects updates as a result of accounting standards and other improvements. The 2021 SEC taxonomy contains improvements based on two SEC final rules. The 2021 XBRL DQC taxonomy includes three new DQCRs. |
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March 2021 |
SEC accepts use of the 2021 U.S. GAAP and SEC Reporting Taxonomies |
On March 23, 2021, the FASB announced that the U.S. Securities and Exchange Commission (SEC) has accepted the 2021 GAAP Financial Reporting Taxonomy (GRT) and the 2021 SEC Reporting Taxonomy (SRT) (collectively referred to as the “GAAP Taxonomy”). The FASB also finalized the 2021 DQC Rules Taxonomy (DQCRT) which together with the GAAP Taxonomy are collectively referred to as the “FASB Taxonomies.” |
March 2021 |
IFRS Taxonomy 2021 issued |
On March 24, 2021, the IFRS Foundation issued its 2021 IFRS Taxonomy. The IFRS Taxonomy is a translation of IFRS Standards into XBRL (eXtensible Business Reporting Language). The IFRS Taxonomy 2021 is consistent with IFRS Standards as issued by the IASB at January 1, 2021, including those issued but not yet effective. |
December 2021 |
On December 17, 2021, the Financial Accounting Standards Board (FASB) released the 2022 U.S. GAAP Financial Reporting Taxonomy (GRT) , the 2022 SEC Reporting Taxonomy (SRT), and the 2022 XBRL U.S. Data Quality Committee Rules Taxonomy (DQCRT). The taxonomies are subject to final SEC approval, which is expected to be granted in early 2022. For more information, see the press release on the FASB’s website. |
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March 2022 |
SEC accepts use of the 2022 U.S. GAAP and SEC Reporting Taxonomies |
On March 22, 2022, the U.S. Securities and Exchange Commission (SEC) announced that it has accepted the 2022 GAAP Financial Reporting Taxonomy (GRT) and the 2022 SEC Reporting Taxonomy (SRT) (collectively referred to as the “GAAP Taxonomy”). The FASB also finalized the 2022 DQC Rules Taxonomy (DQCRT) which together with the GAAP Taxonomy are collectively referred to as the “FASB Taxonomies.” |
March 2022 |
On March 24, 2022, the IFRS Foundation issued its 2022 IFRS Taxonomy. The IFRS Taxonomy is a translation of IFRS Standards into XBRL (eXtensible Business Reporting Language). The IFRS Taxonomy 2022 is consistent with IFRS Standards as issued by the IASB at January 1, 2022, including those issued but not yet effective. |
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December 2022 |
On December 16, 2022, the Financial Accounting Standards Board released the 2023 GAAP Financial Reporting Taxonomy and the 2023 SEC Reporting Taxonomy (collectively referred to as the “GAAP Taxonomy”). The FASB also released the 2023 XBRL DQC Rules Taxonomy (DQCRT), which together with the GAAP Taxonomy, are collectively referred to as the “FASB Taxonomies.” The taxonomies are subject to final SEC approval, which is expected to be granted in early 2023. For more information, see the press release on the FASB’s website. |
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March 2023 |
SEC accepts use of the 2023 U.S. GAAP and SEC Reporting Taxonomies
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On March 21, 2023, the U.S. Securities and Exchange Commission (SEC) announced that it has accepted the 2023 GAAP Financial Reporting Taxonomy (GRT) and the 2023 SEC Reporting Taxonomy (SRT) (collectively referred to as the “GAAP Taxonomy”). The FASB also finalized the 2023 DQC Rules Taxonomy (DQCRT) which together with the GAAP Taxonomy are collectively referred to as the “FASB Taxonomies.” |
March 2023 |
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On March 23, 2023, the IFRS Foundation issued its 2023 IFRS Taxonomy. The IFRS Taxonomy is a translation of IFRS Standards into XBRL (eXtensible Business Reporting Language). The IFRS Taxonomy 2023 is consistent with IFRS Standards as issued by the IASB at January 1, 2023, including those issued but not yet effective. |