*Annual Comprehensive Financial Reports (ACFRs) is not mandatory currently; it is a best practice in US local government reporting.
An Annual Comprehensive Financial Report (ACFR) is a financial statement that government entities issue in accordance with the Governmental Accounting Standards Board (GASB) requirements. It outlines an entity’s annual spending, assets, and liabilities. ACFRs are issued by states, municipalities, and other government entities and summarize the annual reports of all the entity’s agencies.
ACFRs are a detailed presentation of a state’s financial condition, with introductory, financial, and statistical sections. However, the information in these reports is currently locked up in PDF format, which makes it difficult to aggregate and analyze financial performance across government entities.
ACFRs need to be standardized in a machine-readable format, such as eXtensible Business Reporting Language (XBRL) to facilitate better decision-making. XBRL has a proven track record of revolutionizing corporate compliance reporting globally and is the ideal open data standard for this purpose.
In July 2018, XBRL US, a not-for-profit national consortium for business reporting standards announced the creation of a State and Local Government Disclosure Modernization Working Group aimed at developing machine-readable reporting for ACFRs. IRIS Business Services LLC, our local subsidiary is a member of this working group, working with various stakeholders in facilitating the adoption of XBRL for ACFRs. IRIS contributed in multiple ways, providing several of their products for various pilots and proof of concept initiatives with interested several state agencies across the US. IRIS contributed to the development of the working group taxonomy, participated in pilots facilitating the conversion of several ACFRs into XBRL/iXBRL documents, and in demonstrating the value of XBRL for real-time analytics.
As part of a pilot project, we assisted Michigan’s County of Ogemaw, Pine River Township, and the City of South Haven in preparing their ACFRs in iXBRL. IRIS played a significant role in creating a “commercial grade” XBRL taxonomy through a project organized by XBRL US and the University of Michigan’s Center for Local, State, and Urban Policy (CLOSUP).
IRIS CARBON® facilitates ACFR reporting by offering a hassle-free compliance solution for the iXBRL Reporting. You can choose to either utilize our cutting-edge technology to generate top-notch iXBRL reports or delegate the task to our seasoned team of XBRL professionals.
Apart from the SEC’s iXBRL mandate, we also facilitate XBRL filings with the US FERC. In Europe, we help companies file iXBRL reports under the ESEF mandate; in the UK, we facilitate iXBRL filings with the FCA and HMRC; in South Africa, we have built the CIPC’s iXBRL report collection platform and also provide compliance services to companies.