Simplified Tagging for Beginners
The question we hear most often is, “How can it be this easy? With other ESEF providers we have to spend hours upon hours tagging, and with you it’s all handled for us. What’s the catch?”
In truth, there is no catch.
We could go on to explain how we have been working with XBRL for so long, that our system is perfect and how over the course of the last eight years, we have tagged hundreds of thousands of annual reports, which is all true, but it would also be missing the most important factor – Simplified Tagging.
Simplified Tagging is Just Better
Eight years ago, one of our founders developed something called simplified tagging, which is the reason why we can offer you XBRL conversion without you having to tag the upwards of 8000 entries in your annual report. It might sound like magic, but it really isn’t. No hours upon hours of manual labor, no AI, just a brilliantly simple invention.
Tagging any annual financial report is like finding needles in a haystack. It’s about connecting the right numbers and the right words within the report. If you were to do that yourself, you would need someone with knowledge of how those numbers and words relate to each other to map out the file, and even then, there is a quite large possibility for human error.
How Simplified Tagging Works
The easiest way to understand simplified tagging, is if you imagine three dictionaries. The first dictionary is a dictionary filled with something we call “Customer Specific Labels”. We establish this dictionary from your annual reports.
The second dictionary is an abbreviation dictionary. We call it “ParsePort Global Labels” and it contains a staggering amount of abbreviations usually used when writing annual reports. This is because many companies and even auditors use abbreviations such as writing “Rev.” instead of “Revenue”. Our abbreviation dictionary is near perfect, because it is based on eight years of collecting abbreviations from the annual financial reports of publicly listed companies all over Europe, and every year we add new abbreviations.
The third and final dictionary is based on the ESEF taxonomy. It is simply titled “Taxonomy Labels” and it contains every word or phrase used within the taxonomy.
The combination of these three dictionaries is what makes it possible for our product to map your annual financial report faster and with more accuracy than any human ever could. Whenever our system tags something within your annual report, it will first check the entry against your “Customer Specific Labels” and if it finds nothing, it will move on to check the entry against the “ParsePort Global Labels” and if it still finds nothing it will check it against the Taxonomy Labels.
Should it occur, that no match is found within the three dictionaries the Service Team Member in charge of the conversion will manually add it to your Customer Specific Labels. This means, that next year, that entry will be mapped automatically without any fuzz.