As ESEF regulation requires iXBRL tagging, it is used in financial reports publication of listed companies. It allows greater transparency and better understanding of financial data. Based on XML (Extensible Markup Language), this language also allows financial data to be published on websites and to become more accessible. Its markup system is widely used for data transmission over the Internet.
Thanks to it, the information is specified through the attribution of one or several concept(s), which facilitates their reading and their understanding, in particular if the analysis of the document is carried out automatically (e.g. Software or artificial intelligence used for financial data comparison purposes). It enables the decomposition of information: the analysis process helps to identify the meaning and structure of information, instead of displaying it as a simple flow. Thus, investors can compare the financial data of different companies more effectively and can take more informed investment decisions.
The iXBRL is therefore an important tool for companies and investors, as it allows a better understanding of financial data and greater transparency in the publication of information. It can help to build investor confidence in companies and improves the quality of financial reporting.