Start tagging
1 minute read
Getting started with tagging (in practice)
Once you have your software in place you can begin the tagging process, tagging is not a word matching exercise. The key question is always:
"Does the meaning of the tag match the accounting meaning of what I am reporting?"
Remember that the purpose of tagging is to communicate the information and the context and structure of that information not just to pass a validation check.
A good way to start is use an external tool like the UK iXBRL viewer to look at examples from others, they should give you a sense of how it works and what choices people have made.
Good tagging requires:
- understanding the original reported information and how that can be reflected in the digital format
- understanding the definitions and references behind each tag
- involvement from the finance team, not just designers or external providers
A typical first year:
- takes longer than subsequent years
- benefits from early planning
- should include time for review and validation
Rolling forward in later years is usually much faster, provided tags are reviewed and updated where the report has changed.
One final point
If digital reporting requirements are not met correctly, companies may face:
- rejected filings
- additional cost
- pressure close to deadlines
See more about review and validation in our next section