XBRL is a language for the electronic communication of financial data and business which is transforming business reporting around the world. It offers main benefits in the communication, analysis and preparation of business information. It offers cost savings, reliability and improved accuracy and reliability greater efficiency to all those included in supplying or using financial data. On the other hand, financial information is basically “tagged” or “coded” in a standardized fashion to permit the SEC (Securities and Exchange Commission) to understand it more readily. XBRL stands for eXtensible Business Reporting Language. It is an extension of “XML”(the eXtensible Markup Language). An extensible language stands for one that is designed to easily permit the addition of new features at a later date. As might be expected, the specifications, or rules, for these languages necessity to be managed so as to allow consistency in their improvement. (1)
XBRL is being advanced by an international non-profit consortium of approximately 450 main organizations, companies and government agencies. It is an open standard, licence fees are free. It is already being put to practical usage in a number of countries and implementations of XBRL are increasing rapidly all over the world
Who uses it?
The international XBRL group is reinforced by more than 600 supporter of organisations, from both the public and private sectors. The standard has been developed and refined over more than a era and supports nearly every type of conceivable reporting, while offering a varied range of features that improve the consistency and quality of reports, as well as their usability. XBRL is used in several different methods, for many different determinations, including by:
Financial regulators that want significant quantities of complex performance and risk data around the institutions that they regulate.
Securities regulators and stock exchanges that need to examines the performance and compliance of listed securities and companies ,and need to ensure that this information is offered to markets to consume and analyses.
Business registrars that need to accept and make publicly available a range of corporate data about private and public companies, including annual financial statements.
Tax authorities that need financial statements and other compliance information from companies in order to process and review their corporate tax affairs.
Statistical and monetary policy authorities that need financial performance information from many different organisations.
Companies that need to offer information to one or more of the regulators and organizers.
Enterprises that need to exactly move information around within a complex group.
Supply chains that need to exchange information to be able to aid risk and measure activity.
Government agencies that make the process of businesses reporting to government simple and plummeting red tape, by either harmonizing data definitions or consolidating reporting obligations or both of them
Specialist data offers that use performance and risk information published into the market place and create evaluations, assessments and other value-added information products for other market participants.
5-Analysts and Investors
Analysts that want to know relative risk and performance.-
-Investors that need to understand the underlying performance of existing investments and compare potential investments.
Accountants practice XBRL in support of clients reporting requirements and are often involved in the preparation of XBRL reports.
XBRL provide main benefits at all stages of business analysis and reporting. The benefits are seen in cost saving, automation, faster, more accurate handling of data and more reliable, improved analysis and in better quality of decision-making and information.
XBRL allows consumers and producers of financial data to switch resources away from expensive manual processes, typically containing waste of time comparison, assembly and re-entry of data. They are able to concentrate effort on analysis, helped by software which can manipulate and validate XBRL information.
Those who stand to benefit contain all who gather business data, containing governments, stock exchanges, regulators, economic agencies, financial information companies and the like, and those who produce or use it, containing accountants, company managers, auditors, financial analysts, investors and creditors. Among those who can take benefit of XBRL include accountancy software vendors, the financial services industry, investor relations companies and the information technology industry.
The use of XBRL does not imply an obligatory standardization of financial reporting. Contrariwise, the language is a flexible one which is intended to support all present features of reporting in different industries and countries. Its extensible nature means that it can be adjusted to meet particular business requirements, even at the individual organization