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Questions to Consider:

Questions to Consider:. How might the iXBRL tagging of tax returns and company financial statements be harnessed to deliver benefits to us? Increased Year 2 compliance requirements often result in company reassessment of prior period ‘bolt-on’ implementation Built-in Benefits include:

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Questions to Consider:

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  1. Questions to Consider: • How might the iXBRL tagging of tax returns and company financial statements be harnessed to deliver benefits to us? • Increased Year 2 compliance requirements often result in company reassessment of prior period ‘bolt-on’ implementation • Built-in Benefits include: • Effectiveness and efficiency in the financial close last mile of report assembly and review processes via reduction of manual effort through automation • Report assembly • Report review • Spreadsheet aggregation and analysis • Enhanced controls • Over edit process and related turn-around time • Automating manual controls • Enhanced ability to benchmark, analyse and access data XBRL Ireland & Revenue Roadshow August – September 2012

  2. AGENDA XBRL and iXBRL The UK adoptionexperience What you should be considering now Revenue’sapproach and requirements Questions and Answers

  3. Questions to Consider: • How might the iXBRL tagging of tax returns and company financial statements be harnessed to deliver benefits to us? • Increased Year 2 compliance requirements often result in company reassessment of prior period ‘bolt-on’ implementation • Built-in Benefits include: • Effectiveness and efficiency in the financial close last mile of report assembly and review processes via reduction of manual effort through automation • Report assembly • Report review • Spreadsheet aggregation and analysis • Enhanced controls • Over edit process and related turn-around time • Automating manual controls • Enhanced ability to benchmark, analyse and access data XBRL & iXBRL What isitallabout?

  4. XBRL and iXBRL • eXtensibleBusiness Reporting Language • i.e. xml for Financial Statements • A technical language for reporting business information • Designed for computer to computer transmission • Used by regulators and businesses to gather structured data efficiently • Computer ‘bar-code’ for financial information • Tags drawn from published libraries called ‘taxonomies’ • But pesky humans want to read the financials, so • iXBRL: inline XBRL - combines human and computer readability • i.e. HTML/Web page, with the tags embedded

  5. XBRL at a glance

  6. iXBRL - Human and computer readable The places where tags have been applied are shown here with blue background shading. Some of the XBRL attributes of a single fact are summarised in the cloud. Tag Name: Turnover / Gross operating revenue Taxonomy: UK GAAP Date Context: Current year duration Scale: Units Decimals: Zero Currency: Pound sterling Reversed: False Default dimensions: Continuing Operations

  7. XBRL Around the World There are over 500 Projects registered with XBRL International around the world. There are many different drivers from a regulatory compliance perspective, including: - Stock Exchange filing - Companies House filing - Banking, Insurance and other regulatory reporting - Tax filing To find out more about these projects visit: www.xbrlplanet.org

  8. Why are Tax authorities looking at XBRL? Better risk profiling and case selection Data for policy formulation Cheaper tax inspection International Trends

  9. XBRL in Ireland • Current Revenue Position: • Revenue is currently planning to take in financial statements in iXBRL on a voluntary basis towards the end of this year. A phased mandatory filing program will be launched from Autumn 2013. • More to follow on this from the Revenue later in the presentation. • Irish GAAP/IFRS Taxonomy: • Ireland will use the UK GAAP Taxonomy with localisation changes already made to address Irish GAAP requirements. • For companies that report in IFRS, an Irish version of the IFRS Taxonomy will also be published in the coming months.

  10. Questions to Consider: • How might the iXBRL tagging of tax returns and company financial statements be harnessed to deliver benefits to us? • Increased Year 2 compliance requirements often result in company reassessment of prior period ‘bolt-on’ implementation • Built-in Benefits include: • Effectiveness and efficiency in the financial close last mile of report assembly and review processes via reduction of manual effort through automation • Report assembly • Report review • Spreadsheet aggregation and analysis • Enhanced controls • Over edit process and related turn-around time • Automating manual controls • Enhanced ability to benchmark, analyse and access data THE UK ADOPTION EXPERIENCE What welearned!

  11. iXBRL in the UK CT600 (XML) Tax computation (iXBRL) Statutory financial statements (iXBRL) Company tax return HMRC mandated iXBRL format for company tax returns due and delivered after 31/03/2011

  12. What do you need to do? • Create a set of “tagged” financials where a set of Inline XBRL financial statements is required • XBRL tagging is a matching process: • performed by people • using software • using a measure of skill and judgement

  13. Approaches to tagging the Accounts

  14. How might the iXBRL tagging of financial statements be harnessed to deliver benefits to us? • Increased Year 2 compliance requirements often result in company reassessment of prior period ‘bolt-on’ implementation • Built-in Benefits include: • Effectiveness and efficiency in the financial close last mile of report assembly and review processes via reduction of manual effort through automation: • Report assembly • Report review • Spreadsheet aggregation and analysis • Enhanced controls • Over edit process and related turn-around time • Automating manual controls • Enhanced ability to benchmark, analyse and access data

  15. Supplemental Data Annual Report in XBRL Annual Report in HTML Current sample reporting process = manual assembly / review 4 5 ERP 1 2 Consolidation 3 ERP Annual Report in Word ERP Outsourced and Bolt-on approaches • Linear Document Review • Distributed Document Review • Manual Assembly via two processes • Manual Spreadsheet Aggregation • Manual Queries of sub-ledgers Review and Check Review and Check Tax Filing ← Largely unaffected | Affected →

  16. Supplemental Data Annual Report in XBRL, Word, PDF Built in = more automated report, assembly and review 1 2 5 3 ERP Report Writer Consolidation ERP ERP 4 • Contextual Review • Collaborative Review • Automated Assembly via a single process • Automated Aggregation • Automated Queries of sub-ledgers Tax Filing

  17. Questions to Consider: • How might the iXBRL tagging of tax returns and company financial statements be harnessed to deliver benefits to us? • Increased Year 2 compliance requirements often result in company reassessment of prior period ‘bolt-on’ implementation • Built-in Benefits include: • Effectiveness and efficiency in the financial close last mile of report assembly and review processes via reduction of manual effort through automation • Report assembly • Report review • Spreadsheet aggregation and analysis • Enhanced controls • Over edit process and related turn-around time • Automating manual controls • Enhanced ability to benchmark, analyse and access data What should you be considering now?

  18. Who will conduct the work to tag financial information in the tax return and the financial statements? 1. Financial Accounting 2. Tax 3. Financial Accounting & Tax jointly Tip:- XBRL tagging of financial statements is essentially an accounting disclosure ‘matching’ process. Ownership or strong involvement of the financial accounts team makes sense.

  19. How many tax returns and company financial statements are affected by this requirement? This requirement impacts all legal entities in the UK that need to file a tax return. For Irish Tax Returns it is being brought in on a phased basis, starting with large cases, as defined by Revenue. Tip:- Engage early with your Revenue contacts to know what timelines you should be working towards. Keep monitoring for Revenue updates: http://www.revenue.ie/en/online/ros/ixbrl/

  20. What is our deadline for having the tax return submitted ? Tax returns are due 12 months after year end date in the UK. Tax returns are due less than 9 months after year end date in the ROI. Tip:- There may be an opportunity for some companies to avoid year 1 XBRL reporting requirement if you file early – Check your dates.

  21. Do we need to purchase and implement new software to do this? You need to investigate to what extent are existing providers of your tax / accounting software doing to meet the new standard. If using Accounts Production Software already there may be an upgrade available with the iXBRL tagging functionality. Tip:- Engage early with your software providers. Planning ahead is key

  22. Do we have the resources and capabilities to do this in-house? Outsourcing might be the most appropriate in the short term solution. However the time is there to set-up this process internally. Tip:- If outsourcing, it is important to evaluate and select a supplier early in the process who can appropriately support you and work to agreed timelines.

  23. How will the tagging and review process work? You should consider what controls you need to put in place to ensure the correct application of the XBRL tags, how would you normally treat a Revenue return. Determine how any judgments necessary in the tagging of the financial information will be identified, considered and resolved. Identify what level of testing of iXBRL tagging will be appropriate. HMRC figures show that in April, 22,000 of the 66,513 returns required re-submission Tip:- Use the Revenues Test facility on ROS to test the validity of your files to eliminate failures on the live submission.

  24. Where can I find out more? • XBRL Ireland www.xbrl-ie.net • XBRL International: www.xbrl.org • Global bi-annual conference on XBRL – conference.xbrl.org • Yokohama – November 2012 • Dublin – Spring 2013 • Projects around the world – www.xbrlplanet.org • Irish Revenue: http://www.revenue.ie/en/online/ros/ixbrl/

  25. XBRL Roadshow

  26. Content • Why? • How? • When?

  27. Revenue’s iXBRL Webpage www.revenue.ie/en/online/ros/ixbrl

  28. Background • Benefits • Maturation of Technology • Legislative Change

  29. Submission of Financial Statements • Taxonomies • Validation • ROS Accounts Extract menus • Non-Standard Periods • Amendments

  30. Timelines 23 Nov 2012 - Voluntary for all Corporation Tax payers 1 Jan 2013 - Voluntary for all Income Tax payers 1 Oct 2013 - Mandatory for all Corporation Tax Payers who are customers of Revenue's Large Cases Division. Returns on or after 1 Oct 2013 with respect to Accounting Periods ending on or after 31 Dec 2012 • Timing for mandatory iXBRL filing for all other CT payers to be determined during 2013

  31. The ROS Interface • iXBRL on ROS – A Preview

  32. ROS My Services

  33. Agent Financial Accounts Screen

  34. Management Screen Upload Status Notice Number File Name

  35. Financial Statement Upload

  36. Inbox Document (Invalid)

  37. Inbox Document (Valid)

  38. ROS Filing – Key Points • Financial Statements can be filed before/with/after filing a CT1 or Form11 • Validation information message sent to ROS Inbox • Amend/Resubmit Options

  39. Longer Term • Tax Computations • Self Assesment Regime S. 959R TCA (Sch 4 Finance Act 2012) • Wider Public Sector

  40. Current Popular Questions • CT1 and Form 11 • Other Taxheads • Dormant Companies • Unlimited Companies • Branches of non-Irish Companies

  41. Revenue Approach • Communication • Consultation • Support • www.revenue.ie/en/online/ros/ixbrl

  42. Go raibh maith agaibh iXBRL@revenue.ie

  43. Questions to Consider: • How might the iXBRL tagging of tax returns and company financial statements be harnessed to deliver benefits to us? • Increased Year 2 compliance requirements often result in company reassessment of prior period ‘bolt-on’ implementation • Built-in Benefits include: • Effectiveness and efficiency in the financial close last mile of report assembly and review processes via reduction of manual effort through automation • Report assembly • Report review • Spreadsheet aggregation and analysis • Enhanced controls • Over edit process and related turn-around time • Automating manual controls • Enhanced ability to benchmark, analyse and access data Questions ?

  44. Questions to Consider: • How might the iXBRL tagging of tax returns and company financial statements be harnessed to deliver benefits to us? • Increased Year 2 compliance requirements often result in company reassessment of prior period ‘bolt-on’ implementation • Built-in Benefits include: • Effectiveness and efficiency in the financial close last mile of report assembly and review processes via reduction of manual effort through automation • Report assembly • Report review • Spreadsheet aggregation and analysis • Enhanced controls • Over edit process and related turn-around time • Automating manual controls • Enhanced ability to benchmark, analyse and access data Appendices

  45. XBRL Governance • XBRL • International Open Source XML Standard • XBRL International Inc (xbrl.org) • US Corporation responsible for development of XBRL • Reviewing and approving taxonomies • XBRL Ireland (Business Reporting Ireland Limited) • Not for profit Irish Company limited by guarantee • Promote and support the adoption of XBRL in Ireland • Sponsors the development of the Irish GAAP taxonomy

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