Last reviewed: 01/8-2024.
1.Rounding inconsistencies
Calculation inconsistencies (or rounding inconsistencies) occur when figures from your report use roundings - for instance writing 2 + 2 = 5 in your report instead of 2.3 + 2.4 = 4.7.
Why do we get rounding inconsistencies ?
Rounding inconsistencies occur when your report 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 a much bigger difference.
XBRL doesn’t differentiate between the two, and because of this, the system produces a calculation inconsistency whenever a rounding doesn't sum up correctly.
There are different ways to deal with this type of inconsistency:
- Use the exact calculation in your report (2.3 + 2.4 = 4.7 instead of 2 + 2 = 5)
- Select ‘Calculation 1.1 round to nearest’ when doing a conversion on the ParsePort Platform - the system will accept roundings and not flag them as inconsistencies
- Do nothing. Calculation inconsistencies caused by roundings are often non-blocking errors, which means that they won’t prevent you from filing your report . The downside to this approach is that anyone in possession of an iXBRL validation tool such as the ParsePort Platform will see these inconsistencies when they validate your report.
2. Inconsistent Calculations
Do you still see calculation inconsistencies even though there are no roundings in your report?
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.