Your Guide to the 2024 IFRS Taxonomy Update

As of July 1, 2024, the U.S. Securities and Exchange Commission has updated the EDGAR^® system to support the 2024 International Financial Reporting Standards (IFRS) taxonomy. The 2024 taxonomy brings a variety of changes, including element updates and modeling changes.

Let's take a closer look.

Element and Modeling Updates

The IFRS Foundation continues to enhance the taxonomy to address new or amended presentation and disclosure requirements arising from IFRS Accounting Standards issued, common reporting practices, general taxonomy improvements, and technology updates. Key updates for the 2024 IFRS taxonomy are related to the below topics.

IFRS Accounting Standard Updates

The 2024 IFRS taxonomy includes updates related to multiple accounting standard updates (see below for IFRS accounting standards impacting the taxonomy). New elements were added to the taxonomy for these disclosure requirements.

• Filer action: Filers should evaluate new concepts that may be applicable to their reporting scenarios.

Common Practice Updates-Financial Instruments

Modifications to existing elements and new elements were added to the 2024 IFRS taxonomy to accomodate for common practice disclosures for financial instruments specifically in the banking industry. The IFRS Foundation has reviewed common practice for the statement of financial position and the statement of cash flows because entities created the most financial instrument extensions for these two statements.
New line-item elements were added to model concepts that reflect commonly reported combinations of shared characteristics that describe financial assets and liabilities.

• Filer action: Filers should review current XBRL^® modeling against the new standard and modified elements provided in the taxonomy.

General Taxonomy Improvements

Reconciliation of right-of-use assets
Additional elements were added to the taxonomy to accommodate for disclosures for the reconciliation of changes in property, plant, and equipment, including right-of-use assets.

• Filer action: Filers should review current XBRL modeling against the new standard and modified elements provided in the taxonomy.

Removal of restrictive text from member documentation labels
Modifications were made to the taxonomy as it relates to the removal of restrictive text for antidilutive instrument members as to allow more flexibility on how these members can be used.

• Filer action: Filers should evaluate the modifications that were made to the taxonomy that may be applicable to their reporting scenarios.

Categorical elements

New boolean and extensible enumeration elements were added to the taxonomy to accommodate for categorical elements. Categorical elements allow for filers to tag standard responses from a list of options defined in the IFRS taxonomy. The objective of this update is to simplify how users of digital financial reports interpret disclosures and to make their analyses of disclosures more efficient.

• Filer action: Filers should evaluate the modifications that were made to the taxonomy that may be applicable to their reporting scenarios.

Technology Updates

The IFRS Foundation introduced "[domains]" to replace "default" members in the 2024 IFRS taxonomy. A majority of these "default" members were deprecated, except for six "default" members there were demoted to standard members.

• Filer action: For the majority of "default" members that were deprecated, these will auto migrate to the new domains. For the six "default" members that were demoted to standard members, filers will need to manually add the new domains to the XBRL outline. For filers using the Workiva platform, this will appear as an actionable item within your migration log and will require an update to the XBRL outline (see image below).

How should IFRS filers approach taxonomy migration this year?

This year's new taxonomy focused on IFRS accounting standard updates, common practice updates, general improvements, and technology updates. We recommend filers not only focus on deprecated elements but also review new elements, modified labels, and definitions.
To provide guidance to filers, the IFRS Foundation offers a number of resources:

• IFRS Accounting Taxonomy 2024

• Update 1 - International Tax Reform-Pillar Two Model Rules, Supplier Finance Arrangements and Lack of Exchangeability

• Update 2 - Common Practice for Financial Instruments, General Improvements and Technology Update

• IFRS Accounting Taxonomy Illustrative Examples

For learning opportunities, watch the Workiva calendar of events for upcoming webinars and workshops on filing best practices, XBRL tagging, and more.

Last, but not least, please keep in mind that companies are encouraged to use the most recent taxonomy release for their XBRL filing. Even though the 2023 IFRS taxonomy is still accepted by the SEC, we recommend filers consider moving to the 2024 IFRS taxonomy. Your service providers can also help you on your path to a successful migration this year.

If you need assistance with migration, XBRL tagging, or learning more about how Workiva can help, please reach out.

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