Calculation inconsistencies (or rounding errors) occur when figures from your PDF do not add up correctly in our Excel Template due to roundings - for instance writing 2 + 2 = 5 in your PDF instead of 2.3 + 2.4 = 4.7.
Currently we propose two ways to deal with this type of inconsistency:
The best way to deal with a rounding error is to simply correct your calculations so they do not produce erroneous outcomes such as 2+2=5.
- The other and probably easier way to deal with rounding errors is to simply do nothing. Calculation inconsistencies caused by roundings are often non-blocking errors, which means you can file your ESEF report even with the errors. The downside to this approach is that anyone in possession of an iXBRL validation tool such as the ParsePort XBRL Inspector will get the same error message when they validate your report.
Why do we get rounding errors?
Rounding errors occur when your reporting includes an erroneous calculation which happens as a result of roundings. While roundings are an accepted accounting principle, they still produce errors when used in XBRL.
If you for instance want to report the following:
1.4 + 1.3 = 2.7
You would normally state in the beginning of your report that you are using roundings, and then turn the calculation into the following:
1 + 1 = 3
In your report the “1” could mean 1000$, in which case the .4 and .3 would be 400$ and 300$ respectively, which doesn’t make a big difference in an annual report. But if that same 1 instead meant 1,000,000,000$ then the omitted .4 and .3 would make quite the difference.
XBRL doesn’t differentiate between the two, and because of this, the system spi a calculation inconsistency whenever a rounding doesn't sum up correctly.
The easiest way to avoid these inconsistencies altogether, is by rounding the figures before they are summed/calculated.
Have you NOT used roundings in Excel, but still see validation inconsistencies?
This is most likely due to inconsistent calculations of specific line items that appear multiple times throughout the financial statements. An example could be "comprehensive income", being calculated in both Statement of Changes in Equity and Comprehensive Income Statement. If the calculation of "comprehensive income" is not consistent between the two statements, a calculation inconsistency will appear in the validation summary.
If you want a more detailed explanation of the issue, please find the relevant article here.