XHTML stands for Extensible Hypertext Markup and is a markup language best known for websites but now also used for annual reports. From January 1, 2022, according to the guidelines of the European Securities and Market Authority (ESMA), annual reports of listed organizations must be delivered in an Extensible HyperText Markup Language (XHTML).
Why did they choose XHTML?
XHTML has the functionality of HTML but with a stricter syntax. This is because HTML is based on the flexible SGML, where XHTML is based on XML, a stricter subset of SGML. The stricter syntax of XHTML documents makes annual reports more accessible and easier to process by software programs.
Annual report listed company
For a listed company, an annual report is more than a legally required financial statement to the authorities. It is also a report to the various stakeholders. Think about shareholders, employees, suppliers and customers. That’s why annual reports not only contain financial data, but also a foreword by, for example, the chief executive officer, an overview of operations during the past period, ideas for the future, and interviews with policymakers and other responsible people within the organization.
An annual report contains financial data, text and images which are compiled into a glossy. This glossy and a possible website are intended for the stakeholder, while a PDF document is used for presentation to the financial authorities was used. Note: this is going to change on January 1, 2022!
As of January 1, 2022, mandatory offering in XHTML!
As of January 1, 2022, reports must be delivered in an Extensible HyperText Markup Language (XHTML), with the essential data for financial reporting tagged with Inline XBRL (iXBRL). In other words, the financial data of the report formatted in XHTML will be linked to the taxonomy (freely translated: dictionary) of that year and in time this will also apply to text blocks.
Why settle XHTML with XBRLreports’ software?
Traditionally, an annual report is presented to stakeholders in a PDF file. A third party can, however, translate this data into an XHTML file, with a financial section linked to that year’s taxonomy via iXBRL. But that is a cumbersome process involving multiple parties. It costs a lot of time and money and if something has to be adjusted due to an error or new insight then you have to start again from the very beginning.
That’s why we at XBRLreports have opted for a different approach. More direct! At XBRLreports we don’t tag the financial data in iXBRL afterwards, we start doing that immediately when compiling the financial figures so that everything is included right from the start.
The linked data is then processed when the document is converted to XHTML, with an IXBRL link for the financial data. This requires a slightly different approach than you are used to, but provides many advantages.
The benefits in a row:
- Fewer parties involved in the process
- No manual conversion, so less risk of errors
- Only the link to the taxonomy needs to be refreshed annually (much remains the same), but that is fairly simple. So the process does not have to be done all over again every year
- Faster, more efficient and cost-effective
- Last minute changes do not require the entire document to be rebuilt
4 service products for XHTML
To best serve you in a way that suits you well, we offer four different levels of service. From minimal to maximum support. And to make your choice easy, we offer our services at a fixed price, so there are never any surprises.
This provides you with the software to turn Excel data into an XHTML file (with IXBRL components). Including the updates and of course full support for that software. Furthermore, you do everything independently: Setting the entry point (the technical hierarchical layout of your report including the choice of the right ESEF concepts and finally tagging the requested financial data).
You will have the software to convert Excel data into an XHTML file (with IXBRL components). Including the updates and of course full support for that software. We set the entry point for you based on the ESEF concepts you have selected. You link the XBRL tags to the financial data yourself.
You have the software to convert Excel data into an XHTML file (with IXBRL components). Including the updates and of course full support for that software. We set the entry point for you, selecting the ESEF concepts that apply to you. You will only have to do link the XBRL tags of the requested financial data yourself.
You have the software to convert Excel data into an XHTML file (with IXBRL components). Including the updates and of course full support on that software. We set the entry point for you, determine the ESEF concepts that fit your reporting and tag the requested financial data for you. In short, we take almost all the work off your hands.