IFRS XBRL Taxonomy

Source: IFRS

Table of Contents
  1. What is IFRS XBRL Taxonomy?
  2. Who needs to use IFRS XBRL Taxonomy?
  3. Development of IFRS XBRL Taxonomy
  4. Changes in IFRS Taxonomy 2024
  5. Download IFRS XBRL Taxonomy and supporting documents

What is IFRS XBRL Taxonomy?

To implement standardized electronic reporting across Europe, the European Commission therefore adopted a delegated regulation in 2018 to supplement the EU Transparency Directive. This regulation specifically defines the electronic format for the annual financial report: the European Single Electronic Format (ESEF). In order to achieve this, companies must format their reports using Extensible Business Reporting Language (XBRL). Ultimately, this initiative aims to simplify financial reporting, increase transparency, and enhance the accessibility and analysis of annual financial reports.

Who needs to use IFRS XBRL Taxonomy?

Companies that have their shares or debt securities admitted to trading on an organised capital market within the European Union, or those in the process of becoming publicly traded, are therefore obliged to use the IFRS XBRL Taxonomy.

Development of IFRS XBRL Taxonomy

The International Accounting Standards Board (IASB) will issue the IFRS XBRL Taxonomy 2024 on 1 January 2024. In addition, the IASB issued the IFRS for SMEs Accounting Standard in December 2015. Subsequently, it amended the standard in September 2023, while also issuing Practice Statement 1 Management Commentary in December 2010.

Changes in IFRS Taxonomy 2024

The IFRS Accounting Taxonomy 2024 includes changes to the IFRS Accounting Taxonomy 2023 to reflect new or amended presentation and disclosure requirements arising from:

  • International Tax Reform—Pillar Two Model Rules (Amendments to IAS 12 Income Taxes), issued in May 2023;
  • International Tax Reform—Pillar Two Model Rules (Amendments to Section 29 Income Tax of the IFRS for SMEs Accounting Standard), issued in September 2023;
  • Supplier Finance Arrangements (Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures), issued in May 2023; and
  • Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates), issued in August 2023.

The IFRS Accounting Taxonomy 2024 also includes changes to reflect common reporting practice by entities that apply IFRS Accounting Standards, general taxonomy improvements and technology updates. These changes include:

  • The IFRS Accounting Taxonomy’s technology will undergo changes. As a result, this will impact how it functions
  • A common practice review examines extensions related to the presentation of financial instruments. This applies to tagged financial statements prepared using IFRS Accounting Standards by banking institutions.
  • To support high-quality tagging of financial information, the improvements include changes to tagging the reconciliation of property, plant, and equipment. Specifically, this covers right-of-use assets. Additionally, the IFRS Accounting Taxonomy will introduce categorical elements.