This report, from IRIS Accountancy Practice Solutions and Sift
Media, discusses the reasons for introduction of iXBRL, the
benefits of iXBRL and the options available for practitioners to
ensure they are fully prepared for the new standards.
A revolution in the way HMRC accepts Corporation Tax
returns is imminent. From 1 April 2011 computations and accounts
accompanying the CT600 will generally need to be filed online in
iXBRL format.
Accountancy firms that currently use accounting software to produce
Corporation Tax returns and associated accounts should be able to
rely on their software provider to release upgrades in time to help
them cope with the changes required. Although tax returns and
computations should be straightforward, accounts present a far more
complex problem – for suppliers and for users. Many suppliers have
already delivered the required update to the return and computation
element of their software but updates for accounts software will
take longer. Even if your supplier is likely to do the bulk of the
work for you, almost all software users are likely to need to know
something about iXBRL tagging in order to be able to complete and
review iXBRL–enabled output effectively.
iXBRL is a development of web page HTML which allows a document
to be displayed in human-readable form but also allows the
information in that same document to be correctly interpreted by
computer software.
There are very good reasons for moving to online filing and, in
particular the use of iXBRL. More efficient, reliable and accurate
methods of exchanging data should benefit all those involved.
Although initially HMRC will be the primary beneficiary and
software suppliers, accountancy firms and end users will need to
suffer the major costs, iXBRL should provide significant
opportunities for general processing efficiencies and value-added
products and services in the future.
Nearly all accounting software users will find that the accounts
they produce fall into more than just the straightforward scenario
of the software being able to cope with all that is required. The
significance of changes from the standard template provided as part
of the software could range from simple presentation edits to
certain types of accounts that need to be produced completely
outside of the accounting software.
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