Cyprus Forest Industries Ltd produces and trades wood products used in the manufacture of furniture and related products. The company produces chipboard, melamine-faced, wood-veneered chipboard, and other wood products used in furniture production and as building materials.
Cyprus Forest Industries is a Public Company established in 1970 and registered on CSE. The main shareholder is the Government of the Republic of Cyprus (51% of the stock capital) whereas the remaining 49% belongs to about 600 private shareholders. The Group has a Board of Directors which is elected at the Annual General Meeting of the shareholders and is administered by a professional management team headed by the CEO. The Group is the only producer of industrial wood panels on the island. The Group consists of Cyprus Forest Industries Ltd, the holding company, and two subsidiaries, PEP Ltd and XYLOFORM Ltd.
CMS Systems Solutions Ltd is a global provider of a vast array of professional services and solutions including IFRS Financial Statements, Consolidations, Tax Returns, Capital Statements, Time and Billings, and ISA Compliant Audits. They are the authorized distributor of CaseWare International Inc. in Cyprus and Greece, the company offers solutions for accountants and auditors working in practice, in corporations, and in the government sector. Their Smart-Tools help in completing tasks faster and gives their customers a competitive advantage over the competitors.
CMS Systems Solutions is IRIS CARBON®’s partner catering to the Cyprus market. IRIS CARBON® is an intuitive platform that can handle all functions involved in the ESEF compliance process seamlessly – leading up to a high-quality digital filing that serves the information needs of all stakeholders.
When complying with the ESEF mandate of publishing the annual report in iXBRL format from January 2020 onwards, Cyprus Forest Industries faced the following business challenges
Complying With The Newly Rolled ESEF Mandate
To efficiently comply with the ESEF mandate, Cyprus Forest Industries wanted an ESEF solution that was clear and simple to comprehend. Cyprus Forest Industries was unfamiliar with the process of changing the annual report to the newly adopted iXBRL format, as they had never done it before. The entire process seemed stressful. This was new for the team Cyprus Forest Industries, the iXBRL format required using the ESEF taxonomy, tagging of line items with relevant concepts mentioned in the ESEF taxonomy, creation of extensions where necessary, anchoring of these newly created extensions to their corresponding relationships, and running validation checks to ensure that the report generated is free from errors.
Henceforth, Cyprus Forest Industries sought out a software vendor with extensive XBRL experience and knowledge
Sought After A Quick Turnaround Time To Meet The Tight Deadlines
When Cyprus Forest Industries began evaluating ESEF compliance software suppliers, they sought a service provider that could meet their stringent publication deadlines and produce high-quality iXBRL.
The tight timelines necessitated that an ESEF compliance software provider must lead to generating a high-quality ESEF iXBRL file within a shorter amount of time. In a nutshell, the team at Cyprus Forest Industries sought a service provider with substantial experience in the XBRL domain, who has managed customer filings with outstanding quality and strict timelines.
Why Cyprus Forest Industries Chose IRIS CARBON®
Cyprus Forest Industries agreed to an outsourcing contract with CMS-IRIS CARBON® because of the following two parameters
Great ESEF Compliance Solution At An Attractive Price
Cyprus Forest Industries saw proposals from some prominent ESEF compliance software vendors. But they were looking for a cost-effective and budget-friendly software choice while evaluating compliance options with the ESEF. This is one of the most important factors they looked out for. IRIS CARBON® fit the bill as they promised to deliver a high-quality iXBRL ESEF reporting solution at an attractive price.
CMS Highly Recommending The IRIS CARBON®’s Solution and Services
The search for ESEF-compliant software was made as soon as Cyprus Forest Industries began planning to meet the ESEF mandate’s requirements. CMS Systems Solutions strongly endorsed the use of IRIS CARBON® during a discussion with Cyprus Forest Industries.
IRIS CARBON® offered an easy-to-use ESEF submission interface. IRIS CARBON®’s platform and services were proven to be of high quality by existing clients who have filed their annual reports in iXBRL format. The Cyprus Forest Industries gained trust in IRIS CARBON® as a result of this.
“What we most liked about IRIS CARBON® was their interactive product that comes packaged with unlimited and on-time support, making the ESEF filing procedure appear really simple. As commendable is the design of the software, so are the XBRL domain experts at IRIS CARBON® behind that make the overall experience great.”
As part of Cyprus Forest Industries’ path towards ESEF compliance with CMS-IRIS CARBON®, teams collectively prioritized the most pressing issues.
The IRIS CARBON® Approach
1. Converting The 2020 Annual Report PDF To The Mandated iXBRL Format
IRIS CARBON® conducted a dry run utilizing Cyprus Forest Industries and issued the 2020 annual report. The dry run procedure required loading the Cyprus Forest Industries’ 2020 annual report onto the IRIS CARBON® platform.
The most recent version of the ESEF taxonomy was included in the IRIS CARBON® system. This helped appropriately categorize Cyprus Forest Industries’ 2020 annual report. The automated tagging capability of the platform enabled the ESEF document to be accurately tagged using Artificial Intelligence and Machine Learning once the base file was successfully uploaded. The line items were intuitively labeled per the ESEF taxonomy. Experts in the IRIS CARBON® XBRL domain created extensions wherever the ESEF taxonomy lacked concepts appropriate for tagging. In addition, anchoring relationships were built for each new extension.
The IRIS CARBON® team then independently validated the Cyprus Forest Industries’ 2020 iXBRL ESEF files before forwarding them to Cyprus Forest Industries. It was verified that there were no indications of probable errors or warnings.
2. Reviewing The 2020 iXBRL Annual Report
The purpose of these training sessions was to familiarize the Cyprus Forest Industries team with the IRIS CARBON® platform and its interface. Once the team Cyprus Forest Industries received the 2020 iXBRL yearly report, IRIS CARBON® began training them for handling the review process on the platform.
Sessions included demonstrations of the IRIS CARBON® platform’s review module. The team Cyprus Forest Industries was then able to approve the given XBRL tags for the iXBRL annual report for 2020. For any issues that required explanations, they could leverage the ‘commenting’ feature on the platform to submit any queries or modification requests. The XBRL expert team at IRIS CARBON® instantly picked up any queries or change requests submitted by the team Cyprus Forest Industries and responded via the platform itself.
A summary snapshot of the entire review process was provided on the IRIS CARBON® dashboard so that the 2020 iXBRL annual report could be monitored at each stage. This even indicated if the applied tag was accepted, pending, or denied by a user from the Cyprus Forest Industries team. The dashboard provided both teams with real-time visibility of the reviewing process and the progress of the specified comments.
3. Performing Validation Checks For Detecting Errors And Warnings
Another crucial aspect of the IRIS CARBON®’s review training process was the validation of the 2020 iXBRL annual report. Ideal ESEF compliance software must give an ability to perform validation tests on the platform itself and identify any problems (errors or warning indicators) in the tagged document.
IRIS CARBON® incorporates an XII-accredited Bushchat validator, allowing the team Cyprus Forest Industries to run validations in real-time and instantly detect all errors and warnings in the 2020 iXBRL annual report. Consequently, the errors were instantly identified and resolved. This resulted in significant time savings and a high-quality, error-free output file.
4. Getting The 2020 iXBRL Annual Report Signed-off By Auditors
Auditors assessed and approved Cyprus Forest Industries’ 2020 iXBRL annual report. This indicates that the auditor authorized the tags applied to the 2020 iXBRL annual report and that the same tags could be used to generate the 2021 iXBRL annual report in the future.
5. Successful First-Ever ESEF iXBRL Live Filing In 2021
As a starting point for the 2021 ESEF file, the 2020 iXBRL annual report was used. Team Cyprus Forest Industries provided the fiscal year 2021 data with team IRIS CARBON®, and the same procedure was used to generate the 2021 iXBRL annual report as it was for the 2020 iXBRL file. In 2021, the procedure for developing and generating an iXBRL report became significantly more streamlined because of the intensive training sessions and quick response from the XBRL experts on the queries raised by Cyprus Forest Industries. Therefore, there was a rapid turnaround, resulting in the timely submission of the annual report.
Key Results Achieved
Cyprus Forest Industries complied with the ESEF mandate by implementing IRIS CARBON® as its iXBRL reporting software solution. Team IRIS CARBON® assisted Cyprus Forest Industries during all phases of the ESEF reporting process.
Cyprus Forest Industries Achieved the Following Noteworthy Results
- Successful transition of the annual reports’ PDF format to the newly implemented iXBRL format per the ESEF mandate.
- Getting it right the first time: Despite the short filing window, the preparation, approval, and publication of a high-quality ESEF filing report.