Here is our pick of the 3 most important XBRL news stories from the last week.
1 Get set, ready, go green: prepare for sustainability reporting
- From manufacturing to investment, all market sectors are witnessing a paradigm shift in reporting as governments move from financial stability to financial sustainability.
- Much is still unknown, with fast-moving developments to set sustainability-related reporting standards across the globe underway.
- Regulators recognise that sustainability-related disclosures are a high-stake game, and sustainability reporting will likely become mandatory soon.
A very nice post indeed, summarising the upcoming challenges for sustainability reporters (that’s you, preparers!), including a timeline of expected milestones.
2 IFRS discusses tagging of implicitly reported concepts and data consumption problems
What happens when some values go untagged? If we know A and B, can we simply assume C? In case you missed it, a really interesting presentation by Karlien Conings asks whether lack of tagging of implicitly reported concepts hinders digital consumption of financial information, and what might be done about it. This was discussed at the June 2021 meeting of the IFRS Taxonomy Consultative Group.
While this may look like an arcane technicality of digital financial reporting, it really goes to the core of the onto-logical completeness and accuracy of digital reports as opposed to how the mental representation of a financial report takes shape in the mind of its (qualified) reader. A review of IAS 1 may be in order.
3 Auditchain to use NFTs for accounting and disclosure controls
The launch of the world’s first decentralized accounting, audit, financial reporting virtual machine will feature non-fungible tokens for Proof of Assurance of disclosure controls and to allocate royalties between creators and validators of control logic. Auditchain Labs AG, (https://auditchain.finance) the developer of the world’s first decentralized accounting, financial reporting, audit and analysis virtual machine for assurance and disclosure, today announced a new NFT creation platform that will allocate royalties between curators and validators of global standard logic-based accounting and disclosure control components.
Auditchain is making great strides in the creation of a (near) real-time reporting, auditing and analysis framework and ecosystem on-chain. We believe that this may well represent a textbook (Innovator’s dilemma) example of industry disruption where a new way of doing things creeps in below the radar through a fringe application of technology – in these case, ontological consistency checks of digital reports (see above). Note that the author has a commercial interest.
Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.
For context on XBRL please read this introduction to our XBRL Week in 2016 and read articles tagged XBRL in our archives.
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