Following the requirements of Article 11 of the Law of Ukraine On Accounting and Financial Reporting in Ukraine No. 996, financial and consolidated financial statements under IFRS are prepared based on taxonomy.
Preparing financial statements based on taxonomy is an essential stage of compliance with modern financial information presentation standards. Interactive Extensible Business Reporting Language (iXBRL) is the standard that allows you to integrate the textual and numerical content of financial reporting into a machine-readable format that facilitates the analysis and processing of financial information.
The International Accounting Standards Board (IASB) released the general taxonomy of IFRS. The official website of the IFRS Foundation provides a Ukrainian translation of the taxonomy of financial statements, as well as illustrated manuals on the taxonomy of financial statements according to the forms of financial statements and ІFRS standards.
By the Procedure for submitting financial statements, approved by Resolution of the CMU No. 419 dated 28 February 2000, financial statements prepared based on taxonomy are forwarded to the financial statement collection center, which is operationally managed by the NSSMC to ensure access to state authorities, other authorities and users of financial reporting and consolidated financial reporting according to IFRS, which are, in particular, the NSSMC, NBU, Audit Public Oversight Board, other bodies and structures.
registration on the financial reporting system portal selection of XBRL software.
preparation of financial statements based on iXBRL includes converting textual and numerical information into a format understandable by computers and software.
each financial indicator or line of information should be tagged with proper tags from the taxonomy to ensure correct integration and identification.
after preparing financial statements in iXBRL format, it is prepared for shipping to the relevant regulators, investors or other interested parties.
the financial statement file must meet the requirements of the iXBRL taxonomy and standards for the period for which the financial statements are submitted.
Importance of the preparation of financial statements based on taxonomy (iXBRL)
the laws establish requirements for reporting in iXBRL format and the level of administrative responsibility for its violation (Art. 163 of the Code of Ukraine on Administrative Offenses).
iXBRL makes it easy to analyse and compare financial information, facilitating investors' decision-making process.
iXBRL makes it easier for investors to access financial data and increases confidence.
