On March 13, 2026, representatives of the National Securities and Stock Market Commission of Ukraine (NSSMC) participated in the international conference “Global Changes 2026: IFRS, Taxation and Security”. The discussion focused on the development of financial reporting in Ukraine and its alignment with European practices.
The role of XBRL in digital financial reporting
An NSSMC representative responsible for the Financial Reporting System (FRS) highlighted the Commission’s key role in implementing electronic financial reporting and integrating International Financial Reporting Standards (IFRS) into the XBRL format.
IFRS are principles-based and rely on professional judgment, providing flexibility in disclosures but limiting comparability between companies. XBRL (eXtensible Business Reporting Language) addresses this challenge by structuring financial data and tagging each data point.
This approach enables:
- Automated processing of large volumes of financial data.
- Improved analytical quality.
- More efficient investment and regulatory decision-making.
In this context, independent audit plays a critical role in ensuring the accuracy of financial data and its proper tagging in XBRL, reducing risks and increasing stakeholder confidence.
How the XBRL system works in Ukraine
XBRL implementation in Ukraine is carried out through the Financial Reporting System coordinated by the NSSMC in cooperation with the Ministry of Finance, the National Bank of Ukraine, the State Tax Service, the State Statistics Service, and the Audit Oversight Body.
A key component is the IFRS Taxonomy – a structured set of reporting elements and tagging rules that ensures:
- Comparability.
- Granularity.
- Automated analysis.
The taxonomy significantly expands the number of disclosures compared to traditional financial statements, increasing data quality requirements.
Mandatory XBRL reporting
XBRL reporting is already mandatory for companies applying IFRS, including public interest entities.
Companies must ensure:
- accurate tagging of financial data;
- compliance with IFRS taxonomy;
- technical validation of XBRL files.
This also creates new expectations for finance teams, requiring a combination of accounting expertise and digital skills.
Integration into the European financial environment
The development of digital financial reporting is a key step toward Ukraine’s integration into the European financial ecosystem.
XBRL contributes to:
- increased transparency;
- stronger investor confidence;
- improved investment attractiveness.
Practical challenges for businesses
Despite its benefits, XBRL implementation presents several challenges:
- complexity of the IFRS taxonomy;
- risk of tagging errors;
- technical requirements for file preparation;
- need for transformation of accounting systems.
That is why it is essential for companies to assess their readiness in advance and minimize the risks of inaccurate financial reporting.
Another key challenge is ensuring consistency between source data, financial statements, and audit outcomes. A lack of proper controls at this stage may result in errors identified both during the audit and through automated validation of XBRL reports.
Preparing XBRL reports: key considerations
XBRL reporting is not only a technical task but a comprehensive process that includes data transformation, taxonomy compliance, and quality control.
Key focus areas:
- Consistency of financial data.
- Correct tag selection.
- Regulatory compliance.
- Audit readiness
Companies with IFRS experience can significantly streamline this process with proper preparation.
In this context, professional support in XBRL reporting, financial data transformation, and IFRS advisory is particularly relevant, as well as in related areas such as tax consulting and accounting, enabling a comprehensive approach to financial reporting.
Professional support in XBRL and IFRS: Kreston Ukraine
Kreston Ukraine provides end-to-end support in IFRS financial reporting, XBRL reporting, and regulatory interaction.
Our team has practical experience working with the IFRS Taxonomy and electronic financial reporting requirements, enabling us to effectively address both technical and methodological challenges.
Our services include:
- consulting on UA IFRS XBRL Taxonomy 2025;
- XBRL file validation and accuracy checks;
- audit support and independent assurance;
- assistance in regulatory communication and inspections.
As part of the Kreston Global network (110+ countries), we provide access to international expertise and best practices.
FAQ: XBRL financial reporting
What is XBRL?
XBRL is an international standard for digital financial reporting that enables structured, machine-readable financial data.
Who must submit XBRL reports?
Companies preparing financial statements under IFRS, particularly public interest entities.
What is the IFRS Taxonomy?
A structured framework of financial reporting elements and tagging rules used in XBRL.
What are the key risks?
Tagging errors, taxonomy non-compliance, technical file issues, and data inconsistencies.
Need assistance?
Contact Kreston Ukraine to ensure timely and compliant XBRL reporting with minimized regulatory risks.
We provide end-to-end support – from assessing a company’s readiness to the preparation, review, and validation of XBRL files in accordance with IFRS and regulatory requirements.
