Anchoring: A New Approach to Enhance Financial Reporting
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January 28, 2024 XBRL International’s Entity Specific Disclosure Task Force (ESDTF) has published a post detailing the process of incorporating common practice reporting elements into financial reporting taxonomies like IFRS and US GAAP. This technique can be used by analysts and data providers to meet reporting requirements not explicitly covered in accounting standards, which can hinder data comparability. The European Securities and Market Authority’s (ESMA) introduction of ‘anchoring’ in reports is a significant advancement. Anchoring links extension elements to the wider or narrower elements in the base taxonomy, aiding in clearer interpretation and improved comparison of financial data. The post provides clear, step-by-step guidance on how anchoring can be leveraged to identify and group common practice concepts more effectively. The use of anchoring not only streamlines the identification of common practice elements but also offers insights into the way that companies use extensions, enhancing overall financial reporting quality. This article is essential reading for technically minded professionals involved in the preparation of digital corporate reports, audit, and data analysis, providing them with an advanced methodology to improve data comparability. To find out more details please visit : https://www.xbrl.org/ |