Digitizing International Financial Reports with iXBRL and the IFRS Taxonomy: The Case of the European Union, U.S., and SAP SE

Abstract

ABSTRACT This case enables students to investigate recent financial reporting mandates requiring EU and SEC IFRS filers to digitize financial reports using IFRS-based taxonomies and iXBRL. EU filers are mandated by the ESMA to file IFRS-iXBRL financial reports, complying with the ESEF. SEC IFRS filers follow similar specifications. ESMA and the SEC recently transitioned to XBRL’s enhanced format, iXBRL, combining human and machine-readable language into a single document. Student learning objectives include analyzing these developments and evaluating German multinational corporation SAP SE’s motivation for IFRS–XBRL implementations. SAP, since 2005, files IFRS financials and, since 2009, creates IFRS–XBRL reports. Students apply Corefiling’s Yeti Taxonomy Viewer, the SEC’s EDGAR iXBRL Viewer, and TagniFi’s Console to iXBRL mapping/analysis exercises. The case is for accounting information systems and international accounting courses. It is especially useful for introductory classes on digitized financial reporting with students who have no prior XBRL knowledge.