This article contains a detailed guide on how to identify and solve the issue creating calculation inconsistencies linked to the comprehensive income.
The most common reason for this issue is that you have a subtotal in your Comprehensive Income Statement (CI) which isn’t found in your Statement of Changes in Equity (SOCIE), and this causes inconsistencies in your calculations .
Your calculations can be perfectly correct, but when it comes to XBRL everything is interconnected, so when you have a subtotal leading up to your comprehensive income in CI, you need that same subtotal to be represented in your SOCIE. Otherwise, the system will flag this inconsistency in the conversion.
An example of the issue:
For instance, you may have stated in your Comprehensive Income Statement (CI) that you calculate your “comprehensive income” as a sum of “net profit” and “other comprehensive income”.
Net profit + other comprehensive income = comprehensive income
At the same time, in your Statement of Changes in Equity (SOCIE) you may have stated that you calculate your “comprehensive income” as a sum of “net profit”, “exchange differences” and “cash flow hedges”.
Net profit + exchange differences + cash flow hedges = comprehensive income
Both can be perfectly correct, and iXBRL is equipped to comprehend that “comprehensive income” can be calculated in different ways in different sections.
The reason you are experiencing a calculation inconsistency , is that while you have stated in one section that “comprehensive income” is a total of “net profit” and “other comprehensive income”, in the other section, you haven’t listed “other comprehensive income” as a subtotal.
This means that your calculation is missing a subtotal, and because of this, it creates a blue warning.
Two Possible Solutions
When you experience this type of error, you have two options:
You can disregard the calculation inconsistency. As it is not a blocking error, you can file your report as is.
You can add “Other Comprehensive Income” as a subtotal in your Statement of Changes in Equity, to make the calculations consistent.
Step by step guide
To solve this issue, you first need to identify which items are causing the inconsistency , and why. To do this, you need to upload the zip-file containing your ESEF report to the ParsePort Platform and follow these instructions:
First, locate the items causing the warning:
There are two ways to do this:
In the validation page of the ParsePort Platform, scroll down to the Linkbase Check, and click on the eye-icon next to the calculation inconsistency. This will take you to the relevant element in the Viewer tab.
Another way is to copy the label name from the warning-message:
Go to the Viewer tab, and paste the label in the Presentation Linkbase window to the right (remember to set the language to English(“en”)):
The highlighted sections show where this label can be found, and from there, you can press the labels to navigate between the accounts.
Note: you can also use this method to find the label in the Facts or Calculation tabs.
2.Investigate the issue and calculations:
Click the number which is causing the issue, which is highlighted in blue. If you hover over the number, it will show the warning message, which you can use to double check that you are looking at the correct number:
After clicking on the number, go to the Facts & Elements section of the sidebar :
Under the “Calculations” subsection in the sidebar, you can see the calculations for the element. In this case the calculations for both the Comprehensive Income and Statement of Changes in Equity will appear, as the two are connected to the same element. Here, it is easy to compare the subtotals and see what is creating the warning.
Now that you have successfully identified where the issue occurs and what caused it, it is up to you to decide between the following solutions:
Adjust your calculations in the Excel Template to make them identical and heighten transparency and comparability.
Or,
Leave the calculations as they are and ignore the inconsistency warning.
If you have any questions, or experience any issues during this procedure, feel free to contact our professional services team at support@parseport.com.