What is XBRL reporting?

XBRL (extensible business reporting language) is an open international standard for digital business reporting based on XML, designed for the electronic exchange of financial and non-financial data between companies, investors, and regulators.
The XBRL format allows software algorithms to interpret report data through unified indicator labels that uniquely identify their content, period, currency, and other attributes.
XBRL reporting is primarily used by three groups of users:

capital markets regulators;
investors and creditors;
groups of companies and auditors.

EU legislation requires the use of XBRL/iXBRL by issuers whose securities are admitted to trading on regulated markets.
For Ukraine, the transition to the XBRL format is a logical part of adaptation to European financial reporting standards and a technical condition for compatibility with the EU information disclosure infrastructure.

Reporting in XBRL format in Ukraine: who is required to submit and what is regulated

The obligation to prepare and submit financial statements under IFRS in a single electronic format using XBRL in Ukraine is established by paragraph 2 of the Order of the Ministry of Finance No. 709 dated November 13, 2020 “On approval of the translation of the Taxonomy of Financial Reporting under International Financial Reporting Standards”.
In turn, the list of business entities that are required to prepare financial statements in accordance with IFRS is established by Article 12-1, Part 2 of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” No. 996-XIV (VRU, 1999 ) and the Resolution of the Cabinet of Ministers of Ukraine “On Approval of the Procedure for Submission of Financial Statements” No. 419 dated 28.02.2000 .
The key regulatory acts regulating XBRL reporting in Ukraine are:

Financial reporting system in XBRL format

The financial reporting system in XBRL format in Ukraine is implemented through the Financial Reporting System ( FRS ) Collection Center, which operates on the principle of a “single window”.
The enterprise submits reporting once through the SPS, and the system ensures its acceptance, validation according to the rules of the UA IFRS XBRL Taxonomy, storage, and provision of access to this data to government agencies.
Thus, for companies reporting under IFRS through the SFA, IFRS financial reporting in iXBRL format is the standard technical way to submit reports to regulators.
The SPS includes the following main components:

SPZ portal ( frs.gov.ua ) with personal accounts for downloading reports in XBRL format and viewing inspection protocols;
module for registering and managing accounts of reporting entities;
file acceptance and validation module;
centralized repository of financial statements and audit reports;
disclosure modules and integration interfaces for the National Securities and Markets Commission, the National Bank, the Ministry of Finance, and other regulators.

The functions of the operational administrator of the SFS are performed by the National Securities and Stock Market Commission (NSSMC).

What is the taxonomy of financial statements?

The financial reporting taxonomy is an approved “dictionary” of indicators and rules for the XBRL format, i.e., a list of elements (concepts, data types, units of measurement, periods, relationships, and control relationships).
In an XBRL file, each indicator is tied to a specific taxonomy element; in fact, it is the taxonomy that defines the structure of the report and the logic for its verification.
The current taxonomy (UA IFRS XBRL) defines which metrics can be reported, how they are grouped into forms, which totals must match, and which control ratios the system checks.

Financial reporting in XBRL format: document structure

Financial reporting in XBRL format under IFRS includes electronic versions of the usual forms:

statement of financial position under IFRS;
comprehensive income statement;
cash flow statement;
statement of changes in equity;
notes to the reporting;
audit report (if available).

The difference with the previous electronic format is that each indicator of these forms is presented as a separate fact in the XBRL file.
A typical XBRL file contains:

contexts (reporting entity, reporting period, type of reporting – separate or consolidated);
units of measurement (currency, thousands/full units, other quantities);
concepts – taxonomy elements that determine which indicator is displayed (for example, “Equity, total”);
facts – specific values of indicators tied to the corresponding concepts;
references and notes – textual disclosures related to numerical data;
links (linkbase) – relationships between concepts that define the structure of forms, summary rows, and logical checks.

Technically, all these elements are described by XML tags, thanks to which the XBRL file reproduces familiar reporting forms in a unified structured form.
The Ukrainian Financial Reporting System actually uses the iXBRL (Inline XBRL) standard, which embeds XBRL markup into an HTML page. Unlike a regular XBRL file, such a file can be viewed in a regular Internet browser. This allows a person to see the reporting form they are familiar with, and the software to work with fully structured XBRL data.

Advantages of XBRL / iXBRL reporting

Key benefits of XBRL/iXBRL reporting for Ukrainian companies and regulators:

Data unification. A single taxonomy and form structure allow for direct comparison of reporting across companies and groups.
Fewer errors. Control ratios and logical checks automatically catch incorrect totals and missing key metrics.
Easy analysis and machine reading. Structured data in XBRL format is immediately ready to be loaded into BI systems, consolidation tools, and audit platforms.
Transparency and investor confidence: A single submission standard and automated validation increase transparency, comparability, and reliability of reporting for investors and lenders.

How to generate and submit an XBRL report

Software tools

The free online tool of the Collection Center “Financial Reporting System” (iXBRL-Report) on the portal report.frs.gov.ua is a basic service for compiling an XBRL report according to the UA IFRS XBRL Taxonomy.
Specialized commercial solutions (Caseware, MEDoc, etc.) are an option for companies that need to integrate XBRL reporting with accounting systems and internal analytics.

Preparation process

Check taxonomy. Determine the required version of the UA IFRS XBRL Taxonomy for your reporting period and entity type (according to information from the National Securities and Markets Commission and the National Bank of Ukraine).
Update/select software. Make sure the software tool supports this taxonomy and has built-in or compatible validation functionality.
Prepare IFRS reports. Complete period closing and generate a full set of IFRS reports in the internal accounting system.
Fill in the data in the XBRL tool. Import IFRS forms, map indicators to taxonomy elements, fill in the necessary notes, and check the correctness of contexts (period, reporting type, separate/consolidated) and units of measurement (currency, thousands/full units).
Perform full validation. Run the validator to check the compliance of the UA Taxonomy with IFRS XBRL and eliminate all critical errors before generating the final file.
Generate and sign the XBRL report. Generate the final reporting file in XBRL format and sign it with qualified electronic signatures of authorized persons.
Submit reporting through the Financial Reporting System. Upload the file through your personal account in the Financial Reporting System, make sure that the status is “accepted”, and in case of rejection, analyze the error log, correct the report, and resubmit.

Common mistakes and how to avoid them

No.	Typical error	How does this manifest itself?	How to avoid
1	Incorrect taxonomy or form set	An outdated version of the UA IFRS XBRL Taxonomy was used, or the wrong set of forms was selected (general, for banks, insurers, etc.).	Before work, check on the websites of the Ministry of Finance, the National Securities and Markets Commission, and the National Bank, which taxonomy and forms are valid for your year and type of enterprise; update software and templates in a timely manner.
2	XBRL technical errors (contexts, units, attributes)	Confused dates in the period, different units of measurement for the same type of indicators, incorrect decimals, and missing mandatory facts.	Make maximum use of the automatic creation of contexts and units in the software, do not edit them manually unless necessary; run a full technical validation before submission.
3	Violation of arithmetic and logical controls	The totals do not equal the sum of the components, the balances of the “end of the previous / beginning of the current” period do not match, the sign is mixed up (profit/loss).	Before uploading reports in XBRL format, check the consistency of IFRS forms in the internal system; do not change calculation lines directly in XBRL, but correct the source data.
4	Incomplete disclosures in the notes	Mandatory text fields are not filled in, disclosures required by the taxonomy are missing (accounting policies, significant judgments, credit risks, etc.).	Use the Taxonomy annotation checklists, carefully read the validation protocol (“missing required facts”), and complete the disclosure until all required warnings are removed.
5	Organizational errors and missed deadlines	The software and taxonomy were updated too late, there was no test upload to the SPZ, and there were problems with the CEP on the day of submission.	Test the new taxonomy and software in advance on interim reporting, check access to the personal account of the SPZ and the validity of the CEP certificates in advance.