History of XBRL Project in Iran
In order to develop and maintain a fair and efficient capital market which is the major mission of Securities and Exchange Organization (SEO) as the regulatory body of Iran capital market, all listed companies are mandated to file their information electronically via CODAL’s website.
Improving preparation, exchange, extraction, and comparison of information, providing more data reliability, enhancing the business reporting process which finally lead to a fair and more transparent market are the key drivers of SEO toward XBRL implementation.
To address these needs, SEO decided to adopt XBRL as the reporting standard for financial information in Iran capital market.
The XBRL project started from 2010. In the first phase, the strategic plan of XBRL implementation in Iran capital market was developed as the following steps:
Step 1: Development of Vision Statement and Goals
Step 2: Current Situation Analysis
Step 3: Environmental scanning
Step 4: Strategy formulation
Step 5: Required action plans
As showed in the following figure, information about the first phase is represented in the official website of XII which covers the XBRL projects status around the world. It should be noted that in the Middle East region, only Iran and United Arab Emirate can be considered as the leaders of implementing XBRL.
In the second phase of the project, creating the full taxonomy of Iran is taken into consideration. In this phase of project, manufacturing companies, around 253 companies which cover near 51 percent of the whole industry, where selected as the sectors in which SEO plans to implement XBRL.
Also, Quarterly financial reports including balance sheet, Income statement and cash flow statement as well as Projected Earnings per Share would be covered to transform into XBRL. These financial reports domain covers 50 percent of the entire information exchanged between SEO and listed companies.
As depicted in the following figure, the information about the second phase is also covered in the official website of XII, as well.
In order to inform about the latest status of XBRL projects around the world, please click here.
As the result, Iran Taxonomy was developed based on the IFRS 2013 taxonomy architecture and SEO in-house expertise as well as consultancy services. Then, in order to providing XBRL instances, CODAL system was altered in a way which enables creating, validating and processing data in XBRL.
Successful creation of Iran taxonomy, formation of a professional XBRL workgroup, providing in-house XBRL knowledge, producing XBRL instances and acceleration of processing financial reports can be considered as the most important achievements of this project.
In the next step, SEO intends to complete IRAN taxonomy to cover all reported information and listed companies in different sectors. Moreover, providing appropriate infrastructure to accept data in XBRL format, promoting listed companies to XBRL filing are the other future programs of SEO.
Successful implementation of XBRL weather in this phase or the next phases strongly depends on the collaboration of listed companies
and IT companies who provide data analysis tools and services and accounting software vendors.
In order to exploit the potential of XBRL, SEO welcomes all constructive suggestions, opinions and cooperation of all stakeholders in Iran Capital Market.