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What is XBRL and why do we need that?
XBRL is a language for the electronic communication of business and financial data which is revolutionizing business reporting around the world. It provides major benefits in the preparation, analysis and communication of business information. XBRL stands for eXtensible Business Reporting Language.
Why is XBRL important to financial reporting?
The use of XBRL enables users to receive financial statements and footnotes of all public companies directly from the companies, without changes by third-party data providers. In doing so, XBRL helps facilitate analysis by investors, credit rating agencies, and regulators, and can even help management run the business.
How do companies use XBRL?
Companies using XBRL can extend current taxonomies by defining new tags, or by creating their own taxonomies for their specific purposes. Transparency – XBRL allows for increased transparency of financial information to stakeholders, at a granular level.
Is XBRL restricted to financial?
XBRL is used not only in financial reporting but has been used by bank regulators to determine the level of capital adequacy and solvency of financial institutions.
How XBRL affect financial information reporting?
This will make it difficult for users to analyze the data from the financial report and can give an error during the process. The use of XBRL can increase data integrity, promote cost saving, increase the efficiency, accuracy and reliability of the data and import for decision-making process [2].
Does XBRL set new accounting standards?
The US GAAP Taxonomy was developed by XBRL US under contract with the SEC as a comprehensive set of reporting elements that include GAAP requirements and common reporting practices. “We will continue to work closely with the FASB to align the US GAAP reporting elements with all new accounting standards.
How do you prepare financial statements in XBRL?
Mapping Process for E-Filing of Balance Sheets in XBRL
- Step 1: Map or tag the company’s financial statements to the published taxonomy.
- Step 2: Create an Instance Document based on the Mapping done above.
- Step 3: Validate the created instance document.
- Step 4: File the Instance Document.
Does XBRL make reporting more accurate?
Often termed “bar codes for reporting”, XBRL makes reporting more accurate and more efficient. It allows unique tags to be associated with reported facts, allowing: people publishing reports to do so with confidence that the information contained in them can be consumed and analysed accurately.
Is XBRL mandatory?
On June 28, 2018, the Commission adopted amendments requiring the use of Inline XBRL for operating company financial statement information and fund risk/return summary information.
How does XBRL make business report more efficient?
XBRL offers major benefits at all stages of business reporting and analysis. The benefits are seen in automation, cost saving, faster, more reliable and more accurate handling of data, improved analysis and in better quality of information and decision-making.
What are the disadvantages of XBRL?
XBRL increases the potential for error. Many cite the potential for errors and inconsistencies as a major disadvantage. If companies select the wrong tag from a taxonomy (for example the US GAAP Taxonomy or “UGT”) then users of that information would rely on the incorrect information.
What is an XBRL template?
eXtensible Business Reporting Language (XBRL) is an EXtensible HyperText Markup Language (XHTML) based format but with defined standard items from financial statements (taxonomies), with standardized time and currency designation.
What does XBRL stand for?
DEFINITION of ‘eXtensible Business Reporting Language – XBRL’. eXtensible Business Reporting Language is a standard that was developed to improve the way in which financial data is communicated, making it easier to compile and share this data.
What is the difference between XBRL and FASB?
FASB, Financial Accounting Standards Board. XBRL, or eXtensible Business Reporting Language, is an XML standard for tagging business and financial reports to increase the transparency and accessibility of business information by using a uniform format.
What is the XBRL markup?
XBRL is a markup language that provides for each individual item of data, or element, in financial reporting to be tagged. This feature of XBRL makes financial reporting data both human- and machine-readable, facilitating the access and use of financial information.
Do I have to report my financial data in XBRL?
The reporting of financial data in XBRL is not required by all companies, but because it has become prevalent, it has been suggested that it won’t be long before all companies will have to report their financial data in this language. iXBRL, where i stands for inline is an update that allows for XBRL metadata to be embedded in an HTML document.
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