The Implementation of Inline XBRL (iXBRL) and the IFRS-based XBRL Taxonomy in the EU and the U.S.—The Case of SAP SE

ABSTRACT: This case study examines the accelerating move toward globalization of financial reporting through (1) International Financial Reporting Standards (IFRS) and (2) eXtensible Business Reporting Language (XBRL). In 2020, there are more than 140 nations that permit the use of IFRS (IFRS Foundation, 2018) and over 60 countries that have implemented national XBRL projects (XBRL International, 2020b). The European Union (EU) has mandated IFRS-based XBRL financial statements as of January 1, 2020 (Accountancy Europe, 2019) and the U.S. Securities and Exchange Commission (SEC), since December 15, 2017, requires foreign-based corporations listed on U.S. stock exchanges, preparing financial statements under IFRS, to file IFRS-based XBRL financial statements (SEC, 2018). In addition, the case addresses the recent transition, by both the EU and U.S., to the newest XBRL requirement, referred to as inline XBRL (iXBRL). This case also focuses on SAP SE, the German multinational software corporation, which since 2005 has created traditional IFRS-based financial statements (i.e., in PDF, HTML formats), and has also produced IFRS-based XBRL statements since 2009 (Simon, 2011). SAP SE’s experience provides insights into the future of global financial accounting as it is one of the first companies in the world to fully integrate the IFRS XBRL taxonomy into their financial statement reporting process. SAP SE’s motivation for implementing IFRS-based XBRL and its iXBRL adoption process is examined. Keywords: XBRL, iXBRL, inline XBRL, ESMA, ESEF, IFRS, structured data, SAP SE