The Prime Ministerial Decree of 10 December 2008 has finally completed the necessary regulatory framework in Italy by adopting XBRL for preparation of Notes (Italian: nota integrativa XBRL) for financial statements of 2015.
From 2015, accounting professionals must use the processable XBRL format to draft the balance sheet, the income statement and also notes as per the taxonomy approved in November 2014.The new procedure should be applied to the financial statements filed with the Chambers of Commerce from 3 March 2015. This has been announced in the official communication of the Ministry of Economic Development published in the official gazette 294 of 19 December 2014.
The consortium company for the Italian Chambers of Commerce, Unioncamere has mandated XBRL filing in 2009. Owing to the scenario, as this was one of the first implementation around XBRL, InfoCamere decided to start small.
· The XBRL filing program was made mandatory and the scope was limited to the primary financial statements i.e. Balance Sheet and Income Statement.
· The taxonomy structure was quite simple and had 400 plus elements.
· No complex structures like Tuples and Dimensions were used in the taxonomy.
· The entities were also provided the flexibility to submit PDF format of annual report, in case additional information was to be reported.
While the scope was limited, the benefits of using XBRL started surfacing. Not only did the number of entities filing the balance sheet in XBRL format increase dramatically, but the error rate in the data being submitted also dropped significantly. Thus, one of the core underlying principles of data accuracy was clearly visible even in a small reporting scope. Keeping this in view, steps were taken towards expanding the scope of XBRL filing to cover the entire financial statement including notes.
Early in 2013 and for a period of almost 2 years, the testing of an extended Italian GAAP Taxonomy to include notes in financial statements was undertaken. The changes and increase in scope is being implemented gradually.
The current extension to the Italian GAAP taxonomy covers only details that are explicitly required as per Civil Code. Inclusion of information as per national accounting standards will follow subsequently.
The final taxonomy was released in November 2014 and is applicable for reports ending 31st December 2014 and submitted from March 2015 onwards. With this revision in filing mandate, the scope of information to be submitted in XBRL has increased and has included Notes to Accounts (Nota Integrativa). It is anticipated that this change will also help InfoCamere and other stakeholders in information supply chain to reap benefits because of accuracy and transparency offered by XBRL.
XBRL Implementation Across Europe
The adoption of XBRL has seen a steep increase in the recent years because of regulators worldwide going ahead with XBRL as a standard for data reporting and exchange.
In Europe alone, the pan-European financial sector regulators i.e. European Banking Authority and European Insurance and Occupational Pensions Authority (EIOPA) have gone a long way in standardizing the regulations and subsequently implementing XBRL across Europe. There are a number of business registrars spread across United Kingdom and European countries such as Spain, , Ireland, Germany, Belgium, Denmark and many more who have either mandatory or voluntary XBRL filing programs in place.
You can read our post on Nota Integrativa Reporting: XBRL 2015 Simplified to understand the basics of the XBRL taxonomy.
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