Customer Profile
Reka Industrial Oyj manufactures and sells cables and rubbers in Finland, Sweden, Poland, Denmark, and Norway. It offers instrumentation cables, fire-resistant cables, medium and high voltage cables, halogen-free cables, network power cables, wind power cables, and standard cables under the FlameRex, DryRex, LiteRex, PoweRex, and Reka brands.
The company also provides small and medium-sized rubber components for the vehicle and mechanical engineering industries. It serves the construction, power distribution, and equipment manufacturers. The company was formerly known as Neo Industrial Plc and changed its name to Reka Industrial Oyj in December 2020. Reka Industrial Oyj was founded in 1898 and is based in Hyvinkää, Finland. Reka Industrial Oyj is a subsidiary of Reka Ltd.
Business Challenges
The European Single Electronic Format (ESEF) mandate, which became effective in January 2020, mandates publicly-traded companies in the European Union to submit their annual reports in the xHTML format rather than PDF. The Inline Extensible Business Reporting Language (iXBRL) format makes the document human-readable and machine-readable at the same time, resulting in a more transparent business reporting environment. The new iXBRL format makes the analysis and comparison of the financial statements easier. And while the format does not alter the rules of financial reporting as specified by regulators, it changes the manner in which financial reports are made.
REKA Industrial Oyj had to comply with the ESEF mandate and was trying to look for solutions that addressed the following:
No Internal Expertise For iXBRL
REKA was unfamiliar with the iXBRL format and the specifics of the ESEF mandate. They were unaware of the challenges that would come their way in preparing an ESEF iXBRL annual report. However, team REKA wanted to build the internal capabilities needed to meet ESEF filing requirements on their own. They needed the assistance of an ESEF software vendor who could handhold them with the requirements of the new iXBRL mandate. They also needed a simple and easy-to-use platform to manage iXBRL report preparation smoothly and independently.
Meeting The Filing Deadline Effectively With The New Reporting Format
For team REKA, meeting the ESEF filing deadline was crucial. They, therefore, had to define the process, choose the appropriate software solution, get trained on the solution, and make sure they were fully ready for the upcoming mandate.
Why did Reka Industrial Oyj Choose IRIS CARBON®?
REKA started looking for an ESEF compliance software with two needs in mind –
Software to help build REKA’s Internal Capability for iXBRL Reporting
Team REKA wanted to build up its internal capability to prepare an ESEF iXBRL document. They needed an ESEF compliance software vendor to provide them with a licensed product packaged with the facility to connect with an XBRL expert team whenever they needed assistance.
IRIS CARBON® offered REKA an in-house XBRL/iXBRL creation solution. Using this module, team REKA could create, review and audit their iXBRL document. The in-house model gave REKA full control over the report preparation process.
A Software Promising the Highest Quality Reporting at an Affordable Price
With the ESEF mandate in a nascent stage, REKA needed an affordable compliance solution. In 2019, IRIS CARBON® had rolled out an offer for companies with a market capitalization of less than Euro 100 million. The ‘Small Company Offer’ allowed eligible companies free access to our ESEF reporting solution/services for one year, and REKA fit the bill.
IRIS CARBON® met both of REKA’s pre-requisites for software selection, which made it easy for us to earn REKA’s trust.
Project Objectives
REKA, along with IRIS CARBON®, began its ESEF compliance journey by identifying the most pressing issues. The objectives served as a guideline for both teams to ensure they were on track to accomplish their goals. The following goals were agreed upon.
- Understanding The Scope Of XBRL, iXBRL, The ESEF Mandate, And Its Requirements
- Getting Trained In iXBRL Report Creation And Review Using The IRIS CARBON® Platform
- Managing The iXBRL Report Creation End-to-End (in both Finnish and English versions)
- A Smooth Audit Process For REKA’s ESEF Documents
- Independent Handling Of ESEF Documents (For Both Voluntary And Live Filings)
The IRIS CARBON®Approach
REKA’s ESEF reporting was handled by IRIS CARBON® in five stages. These stages were closely defined per the objectives stated above.
1. Setting Up Of The 2019 Annual Report
At the start of the ESEF compliance project, REKA provided us with their then-published 2019 annual report. IRIS CARBON® used the most relevant version of the ESEF taxonomy to select and apply the appropriate XBRL tags to REKA’s published 2019 annual report. This became the base document that would be used for mapping the 2020 annual report.
2. Hands-On Training Provided
Team IRIS CARBON® planned training sessions around the basics of the ESEF mandate. These hands-on training sessions involved our experts demonstrating to team REKA how their iXBRL document could be prepared step-by-step. The training sessions covered the following topics:
- Starting Out: How to upload the 2019 iXBRL annual report on the IRIS CARBON® platform and use it as a base for the subsequent year.
- Tagging: IRIS CARBON® platform has the latest ESEF taxonomy embedded in it. Once the base file is uploaded, IRIS CARBON®’s automated tagging feature applies tags to the document with accuracy using AI/ML. Wherever there is a match of labels with the taxonomy items, the lines are automatically tagged.
- Extensions: In the absence of appropriate tags or matching concepts in the taxonomy, extensions need to be created.
- Anchoring: The extensions created must then be further defined by their respective anchoring relationships.
- Validation: Team REKA was given tips on how to validate their files and check for errors or warning signs.
- Generation of the output file for final publication
- Tagging of next year’s report from the previously approved iXBRL document
Whenever REKA needed assistance, IRIS CARBON®’s team resolved their queries immediately.
3. iXBRL Creation Of 2020 Annual Report (Voluntary Filing)
Once the base document of the 2019 annual report was set up, REKA used it as the starting point for tagging the 2020 annual report. IRIS CARBON®’s training sessions equipped REKA with the internal capability to independently manage the iXBRL conversion process end-to-end. Team REKA also had the IRIS CARBON® support team’s backing at each step of the reporting process. In 2021, REKA filed their 2020 annual report in iXBRL format voluntarily.
4. Auditors’ Review
The auditors reviewed and signed off on REKA’s 2020 iXBRL annual report. This meant that the tags applied on the 2020 iXBRL annual report had the auditors’ approval and the same tags could be used while creating the company’s 2021 iXBRL annual report.
5. iXBRL Creation Of 2021 Annual Report (Live Filing)
Team REKA uploaded their 2021 annual report in PDF format on the IRIS CARBON® platform. Thereafter, the 2020 iXBRL tags that REKA’s auditors had approved were applied to the 2021 PDF annual report. By this time, team REKA had become extremely efficient at handling the review, validation, and generation of iXBRL output files. IRIS CARBON®’s support team continued to provide assistance to team REKA whenever necessary.
In 2022, REKA filed the 2021 annual report in iXBRL format. After a successful live-filing, the auditors reviewed REKA’s 2021 iXBRL annual report and approved it.
Click here to access REKA’s 2021 iXBRL annual report published on the company’s website.
“I would recommend IRIS CARBON® to everyone searching for an ESEF reporting software. The platform is easy to use and facilitates efficient tagging. The XBRL support team at IRIS CARBON® is very helpful. Extremely satisfied with the training sessions and assistance provided by them. Any query raised by us was resolved quickly and accurately. It has been a good experience overall.”
Minna Palander
Chief Accountant
Key Results Achieved
Team REKA was able to achieve its objectives by leveraging IRIS CARBON® as their iXBRL reporting and compliance solution. The following significant outcomes can be attributed to our platform’s intuitiveness and the credible training our team provided:
