iXBRL reporting - how it impacts your business

There are following impacts indicate by Practice Eye company:
1 Basic principles
iXBRL is purely concerned with the introduction of computer-readable XBRL tags into business reports to enable automated handling of financial data. It should not otherwise change the nature and content of company business reports. That continues to be determined by individual companies in the light  of accounting principles, company law etc.
Those who read business reports in iXBRL need not be aware of the existence of XBRL tags. They may see some changes in the way the user interface of such software works, but the creation of the XBRL tags will be hidden.
 2 Small companies with simple accounts who do not use accounting software
 HMRC provides its own free Corporation Tax online filing software - a downloadable form based product - that can be used by most small companies with relatively straightforward financial affairs to file their Company Tax Returns online. It includes specially formatted accounts and computations templates which if used will ensure data is submitted in the right format.
HMRC and Companies House also provide an optional joint filing service that enables small companies to enter their accounts data once, using the template provided in HMRC's software, which can then be used to submit full accounts over the Internet to HMRC as part of the Company Tax Return and also to send these - or an abbreviated version - to Companies House.
 If a company’s financial reports contain data not catered for in the template provided, then the company won’t be able to use it. However if the company’s circumstances are such that it can legitimately use the CT600 (short) it may be able to attach accounts and computations produced by commercial software.
Companies will need to register to use the HMRC Corporation Tax Online Service to submit their returns online whatever software they choose to use. An activation code will be posted out that can take up to seven days to arrive so companies are advised to register early.
 3 Companies using final accounts production and tax preparation software
 Companies should talk to their commercial software provider or supplier to make sure that the product offered meets their needs and allows them to deliver a fully compliant Company Tax Return.
 HMRC publishes a list of software companies who have successfully tested their products with them and provided evidence that they have either developed software or manage a service (or both) that can produce one or more elements of a Company Tax Return. Inclusion in the list does not imply any judgment by HMRC on the general quality of the software; it  simply indicates that the software meets certain basic criteria including producing technically valid iXBRL output.
 Companies and accountants should consider what processes to follow if accounts and tax computations are produced at different times, possibly by different individuals or firms. Since both accounts and computations must eventually be filed in iXBRL, it may be sensible to ensure accounts and computations are produced in iXBRL when first completed, rather than trying to convert them at a later date. However, it is up to companies and accountants to determine what processes to follow in the light of their circumstances. As discussed below, it is the responsibility of companies to ensure they comply with statutory filing requirements.
 4 Companies creating accounts or computations through manual processes
 Large companies, among others, may create their accounts and other reports using Excel, Word or similar text-based software. These companies may elect to integrate final accounts preparation software into their systems and processes. Alternatively they have two options for converting their data into iXBRL format:
 Use conversion software to turn data from Excel or similar programs into iXBRL. This will involve some manual effort in identifying and applying the correct tags. The degree of effort and nature of the task will vary depending on the software chosen. A number of conversion products are available.
 Some conversion software is listed as ‘recognized’ on the HMRC website and company accountants or others may be able to offer advice on the merits of suitable software. Software may allow templates to be created which will enable tagging to be reused for subsequent reports, so that conversion, once done for an initial report, becomes straightforward in the future. In some cases, it may be possible to use the same template across a range of subsidiaries within a group. The basic issues involved in tagging financial reports and producing iXBRL are described in the next chapter.
 Outsource the conversion of reports into iXBRL to an external organization. These take accounts prepared in a traditional manner, covert them to iXBRL and add the tags.
 5 Company responsibilities for iXBRL filing
 It is a company’s responsibility to ensure that it adequately complies with requirements for filing in iXBRL. Companies which are using final accounts production or tax preparation software to file in iXBRL should ensure that their software is adequate to handle the type and scope of data in their reports. They may wish to consult their software providers or accountants on this point. Companies using external managed tagging services to produce iXBRL formatted accounts and/or computations are responsible for ensuring that it can be incorporated with the online CT600 return form for submission. Companies using conversion software to turn their accounts and computations data into iXBRL in-house are responsible for ensuring these comply with HMRC online filing requirements. They may wish to consult their accountants or auditors on their processes.
 HMRC accepts that that during the transition to iXBRL some errors and omissions may occur with tagging and HMRC are keen to help companies get it right rather than penalize them. Where companies have made a reasonable attempt to get it right, HMRC will adopt a sympathetic approach for the first two years and will be focusing on providing help and support to correct the errors, rather than rejecting the return.