IRIS issues guide to iXBRL preparations
In conjunction with AccountingWEB.co.uk, the tax and practice wing of IRIS group has published a detailed whitepaper setting out what accountants need to do to file Corporation Tax returns online using the new iXBRL format.
From 1 April 2011 computations and accounts accompanying the CT600 will need to be filed using iXBRL. While firms that currently use accountancy software to produce Corporation Tax returns and associated accounts should be able to rely on their software provider to release upgrades in time to help them cope, there are likely to be situations where practitioners need to intervene manually to finalise a set of iXBRL-enabled accounts.
Firms should be actively planning their iXBRL strategy now and the whitepaper sets out a series of milestones to help ensure they are on track.
It also raises 10 key points that will need to be addressed between now and next April, whatever accounts production and Corporation Tax software you now use:
- Ensuring everyone in the firm has a reasonable knowledge of what is going to be required of them.
- Establish a working party to identify how all parts of the firm will be affected by iXBRL, and that departments are taking the appropriate steps.
- Assign “ownership” for iXBRL tagging of accounts.
- Establish when and how tags will be assigned to accounts should changes occur.
- Devise an appropriate review process.
- Decide what evidence you need to keep of the iXBRL tags applied.
- Work out a new client procedure to minimise investigations should the iXBRL tagging approach differ from previous adviser’s.
- Test your new processes.
- Consider your “escape routes”. What would happen in April 2011 if your iXBRL implementation doesn’t go to plan? If you have a client with a complex CT return and accounts due in April, it may well be worthwhile filing that return early to beat the iXBRL mandation deadline.
- Who pays? You will need to communicate to clients about the extra work involved and the extra value that you’re adding.
Although the new approach to Corporation Tax seems like nothing but bad news at the moment, IRIS, AccountingWEB, professional bodies and HMRC itself are all working hard to offer practical help during this important transitional period.
Click here to download your free copy of iXBRL – Ten things you need to do now.
