XBRL

What is XBRL?  

XBRL - eXtensible Business Reporting Language 

XBRL is a standardized language used for transmitting and analyzing financial data. It is a royalty-free open data standard developed by the XBRL International consortium, a not-for-profit group of companies and agencies. It aims to simplify the exchange of information between different systems and organizations.  

XBRL is utilized in over 60 countries worldwide. As of February 2024, there are 216 XBRL implementations around the world, largely for regulatory and supervisory purposes. 

XBRL consists of two document types: 

• “Taxonomies” can be thought of as a dictionary used to describe business information or, in technical terms, to define data concepts and the rules and relations between concepts. The “X” in XBRL stands for “eXtensible,” meaning that it is possible for a company, depending on the framework in which it operates, to extend a taxonomy so that it best reflects its own unique activity. 
• “Instances” refer to business reports that include facts linked to a taxonomy and associated with a context that determines the identity of the declaring entity, as well as the date or period of each fact. XBRL instance documents come in various formats: XML, CSV or JSON. 

What are iXBRL and OIM?   

iXBRL - Inline XBRL  

iXBRL is part of the XBRL Standard, enabling a single document to provide both human-readable and structured, machine-readable data.  iXBRL is used by millions of companies around the world to prepare financial statements in a format that delivers the structured data that regulators and analysts require, while also allowing preparers to retain full control over the layout and presentation of their reports. 

In practical terms, an iXBRL report is a webpage (HTML or xHTML) that presents a business report whose declared facts are attached to a taxonomy through its code using tags. 

OIM – Open Information Model 

The OIM is a strategic initiative by XBRL International aimed at simplifying and modernizing important aspects of the XBRL Standard. This innovative approach provides new and simpler ways to work with XBRL data. It defines a model that represents the meaning of the XBRL Standard, without referencing syntax specifics. It then defines multiple interchangeable formats that can be added to over time. 

Today, three distinct formats are supported:  

• XBRL-CSV to collect huge quantities of granular data 
• XBRL-JSON to make XBRL data simpler to use 
• XBRL-XML for traditional approaches 

Why is it important to use XBRL for financial regulatory reporting? 

XBRL plays a pivotal role in financial regulatory reporting by standardizing the data format, streamlining data exchange, enhancing data precision and transparency and enabling effective analysis of financial information. 

• Improved reporting efficiency 

By converting data to XBRL at the point of capture, financial institutions can automate the entire reporting process, from data collection to report submission. Adopting a unified and open global data standard streamlines the consolidation of different (often Excel-based) reports from individual and/or siloed business units to centralized teams within the organization. It also enables firms to deploy flexible out-of-the-box software that can be applied to data immediately without customization, improving efficiency and reducing the overall cost, implementation time and maintenance burden. 

• Increased data consistency and comparability 

In XBRL, items of data are tagged using a hierarchy of labels defined in a taxonomy. These labels can be in multiple languages, enabling the standard to be leveraged seamlessly across multiple jurisdictions. Data can be tagged multidimensionally, making it simple to filter information by a wide range of criteria. In addition, taxonomies contain coherency checks and rules regarding the treatment of data, so inconsistencies can be flagged at the point of input or conversion to XBRL. Data validation checks are embedded in the reporting templates, and any inconsistencies or anomalies can be identified before submission to the regulator.  

• Enhanced transparency 

By providing machine-readable data, XBRL enhances the comparability and accessibility of financial information, making it easier to prepare reports at the level of data granularity required by regulators. 

XBRL and DPM 2.0 (DPM refit) 

The Data Point Model (DPM) is a methodology used by the European Banking Authority (EBA) to define, structure and organize data. It provides a clear and unambiguous definition of each datapoint required for reporting, ensuring consistency and comparability. The DPM is closely linked to XBRL as it contains the same information as that of XBRL taxonomies to represent datapoints in a machine-readable format. 

Since 2021, the EBA and European Insurance and Occupational Pensions Authority (EIOPA) have collaborated on a joint initiative known as DPM Refit, or DPM 2.0. By reviewing the DPM methodology, this initiative aims to enable a complete convergence in methods of defining and communicating regulatory reporting requirements. The co-evolution of the DPM and XBRL is facilitating more efficient and seamless reporting, while also supporting the collection of large volumes of more granular data.   

In addition, XBRL and DPM 2.0 are leading the charge to support the ECB's Integrated Reporting Framework (IReF) initiative, aimed at establishing a single harmonized reporting framework for all Eurosystem statistical reporting requirements. 

Regnology XBRL-certified solutions 

Regnology has successfully completed the XBRL certification tests for three of our solutions. Each one has proved its full compliance with industry standards. 

Below are details on the solutions and modules for which we are certified: 

• Validating Processor: Regnology XBRL Engine 
• Review and Consumption Software: Regnology Supervisory Hub - Data Collection 
• Report Creation Software: Regnology ESEF