The IFRS Taxonomy is the XBRL representation of IFRSs, including International Accounting Standards (IASs), Interpretations, and the IFRS for Small and Medium-sized Entities (SMEs), issued by the IASB. The IFRS Taxonomy contains tags for all IFRS disclosures.
By providing the IFRS Taxonomy, the IFRS Foundation seeks to address the demand for an electronic standard to transmit IFRS financial information.
Like the IFRS Bound Volume, the IFRS Taxonomy is released once a year to incorporate new IFRSs, improvements to existing IFRSs, and also changes in XBRL technology.
The annual development cycle of the IFRS Taxonomy involves the:
- construction of an XBRL technology framework (known as an architecture), and
- implementation of up-to-date IFRS disclosure and presentation requirements (ie financial reporting content).
The two are then combined and the result is a set of XBRL, computer files which make-up the IFRS Taxonomy. The annual development cycle of the IFRS Taxonomy is illustrated below:
The IFRS Taxonomy is developed through a formal system of due process and broad international consultation. This ensures transparency and compliance with best practice, and also provides quality assurance and opportunities to engage with stakeholders in order to understand their concerns and the impact the IFRS Foundation's decisions will have.