My research will be based on why my company (Ronnie & Associates) should use XBRL.
XBRL is a language for the electronic communication of business and financial data which provides major benefits in the preparation, analysis and communication of business information. Instead of reading information as a block text XBRL provides an identifying tag for each individual item of data.
Three reasons why my company should use XBRL are as follows;
- XBRL provides more efficient way in preparing financial statements because they will be created one time and rendered as printed reports.
- XBRL financial information can be rendered in a variety of formats based upon the user's request, this will reduce the costs associated with report preparation.
- XBRL eliminates manual information gathering and consolidation tasks. This will allow reporting or analytical software to instantly re-use information .
XBRL can be use in enhancing internal financial operational reporting by providing a universally accepted data format to investors, customers, and regulatory authorities from which they may all share. XBRL can be use as a way of distributing information via web to companies and executives replacing spreadsheets and e-mail. It can also be use in collecting more and more data from more and more data sources. XBRL can be use to automate data reporting .
Necessary steps needed in starting the use of XBRL.
-Contact a local XBRL organization or local jurisdiction.
-Buy the necessary software.
-Set up the parameters required by the software to develop an instance document
-Tag selected information like financial statements.
-Complete the tagging using the extended taxonomy.
-Upload the XBRL tag document to your Website.
Accountants can stay up to date on XBRL standards by going to www.xbrl.org website and clicking the link Latest News. The latest news page provides highlights of latest, major XBRL news. http://www.xbrl.org/frontend.aspx?clk=LK&val=29
Sites visited:
http://www.pwc.com/extweb/service.nsf/docid/5D8ABE95DED0433880256E5800396FCE
http://www.ey.com/global/content.nsf/International/XBRL-Internal_Reporting
http://www.xbrl.org/frontend.aspx?clk=LK&val=29
http://www.xbrl.ca/e/pdf/15EasyStepstoGetStartedwithXBRLTagging.doc
1 comment:
I like your three points but I also believe that XBRL is set to become the standard way of recording, storing and transmitting business financial information because of it’s great features. By presenting statements in XBRL format a company can benefit investors and raise its profile. It can also meet the requirements of regulators, lenders and other consumer of financial information who are increasingly demanding reporting in XBRL.
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