GRI Exam ESRS-Professional Topic 5 Question 4 Discussion

Inline XBRL (iXBRL) is the digital reporting format required under the Corporate Sustainability Reporting Directive (CSRD) to ensure standardized and machine-readable sustainability reporting.

It is required under CSRD for sustainability reporting

The CSRD mandates the use of Inline XBRL for sustainability reports, ensuring digital tagging for structured data submission, making information easier to analyze by regulators and investors.

(A) is correct

It only applies to narrative disclosures, not numerical data

Incorrect. Inline XBRL applies to both numerical data (KPIs, metrics) and narrative disclosures, allowing structured reporting across qualitative and quantitative sustainability information.

(B) is incorrect

It makes reports both human-readable and machine-readable

True. Inline XBRL embeds machine-readable tags into a human-readable document, ensuring both usability and compliance with digital reporting requirements.

(C) is correct

It ensures that tags are embedded within a visually clear format

Correct. The Inline XBRL standard ensures that the digital tags do not alter the visual presentation of the report, maintaining clarity for human readers while allowing structured data extraction.

(D) is correct

Conclusion:

Inline XBRL is required under CSRD (A), makes reports both human-readable and machine-readable (C), and ensures a visually clear format (D). However, it applies to both narrative and numerical data, making (B) incorrect.

Official Reference:

Commission Delegated Regulation (EU) 2023/2772

Compilation Explanations January - July 2024