On Nov. 23, DEN CRG said from 2025 companies must use one format.
DEN CRG said from 2025 all companies must only report annual report in one format.
Per Ord 1003 of Jun. 2023 amending Executive Order 1054 of May 2021 on reporting to, publication of annual reports in DEN CRG, communication in connection with this.
Follows DEN GVT Jun. 2023 issued executive orders per Annual Accounts Act #178100.
Overview
New rules state from 2025 companies must send annual report in Inline XBRL format.
With the new requirement, a higher quality of accounting data will be ensured, as greater transparency will be created between structured and readable data.
Context
Previously, all companies reported annual report in two different formats; one read by stakeholders, investors etc; format only used for digital reading, merging of data, etc.
The advantage of new format is that it can be used for both manual, digital reading.
Key Aspects
Submission note (order 1003) amended order on reporting to, publication of annual reports etc. making mandatory to submit annual reports in IXBRL format.
Change takes effect for annual reports with balance sheet date of Jan. 1, 2025 or later.
E.g. company with balance sheet date of Dec. 31 2024 will not be covered by new rules and submission of annual report in the XBRL and PDF formats will be acceptable.
DEN CRG assessed that with new format data quality is improved, better connection is created between the structured annual report and the visual annual report.
This will meet information needs of more account readers, and at same time change will mean that the account information will reach a larger audience.
It is also in line with trend in Europe, where large companies are subject to similar requirements through the EU's new requirements for sustainability reporting.
The annual report of listed companies has been covered by requirement since 2020.
Already possible to submit annual reports in IXBRL, many companies already do so.
Today, around 20% of all annual reports for both small and large companies in IXBRL.
There is general increase in number of annual reports in IXBRL format year on year.
Effectiveness
Executive order 1003 entered into force on Jul. 1, 2023; §1, nos 4-6 have effect for accounts with balance sheet date of Jan. 1, 2025 or later.
For accounts with balance sheet date pre Jan. 1, 2025, §17 Order 1054/2021 applies.
§1 pt 7-8 of order has effect for accounts with balance sheet date Dec. 31, 2023/later.
For accounts with balance sheet date pre Dec. 31, 2023, §19, §§5, and §20, §§1, no 7 of Executive Order 1054/2021 apply.
Regulators
DEN CRG
Entity Types
Auditor; Corp
Reference
PR 11/23/2023; Ord 1003, 6/26/2023; Ord 1054/2021; Citation: Ord 1003;
