The Dutch National Bank (DNB) will now require institutions under its jurisdiction to begin producing financial reports in Extensible Business Reporting Language (XBRL). And impacted firms are being warned not to delay when it comes to implementation by Wolters Kluwer, the global finance, risk and regulatory technology firm.
XBRL is a global standard for exchanging business information used around the world in more than 50 countries for transmitting information of all sorts that has gained worldwide acceptance inside and outside the financial services industry.
When the requirement is fully implemented – expected on October 1st, 2016– Dutch banks will join their peers in approximately 30 European countries, as well as the United States, Japan, China, Australia and much of Latin America, in adopting XBRL.
“Foot dragging by the DNB is arguably the chief culprit in the belated introduction, and it may have produced a sense of inertia among institutions as their counterparts nearly everywhere else have passed them by,” says Joost Roelin, director of Product Management at Wolters Kluwer. “Now that Dutch firms have been ordered to join them and the clock has started toward implementation, they would be wise not to delay further.”
Although XBRL presents challenges there are also tangible opportunities for organizations that embrace the new format, Wolters Kluwer experts note.
“To make the most of XBRL and prepare for the rollout, which will be executed in stages over several months, firms must avoid any temptation to bury their heads in the sand and minimize the scope of the task at hand,” adds Roelin . “Instead, they must take a comprehensive approach, understanding the format in all its complexity. They need to grasp that the conversion to XBRL represents more than a cosmetic bookkeeping adjustment. It is a fundamental change in how they compile information and communicate with regulators.”