XBRL allows the creation of business rules that constrain what can be reported. Business rules can be logical or mathematical, or both. These business rules can be used to:. XBRL allows concept definitions to be prepared in as many languages as necessary. Translations of definitions can also be added by third parties. The XBRL community makes extensive use of this capability as it can automatically open up reports to different communities. XBRL is supported by a very wide range of software from vendors large and small, allowing a very wide range of stakeholders to work with the standard.
Find out more by exploring this site. To truly understand XBRL, and to leverage and benefit from the standard we encourage everyone to join the consortium. By joining you are directly contributing to a global effort to improve reporting. It acts as the standard in the financial circles for preparing, publishing in various formats, extracting and automatically exchanging financial statements of publicly-held companies and the information contained in them.
XBRL filing requirements enhance the usability of the current accounting standards through digitizing business languages without creating new accounting standards and do not need further disclosure from firms to outside audiences.
XBRL Tagging provides the basis for how it works. Because all U. SEC reports use the same GAAP taxonomy, numbers affiliated with equivalent elements are comparable irrespective of how they are defined by those releasing the financial statements. In doing so, XBRL helps facilitate analysis by investors, credit rating agencies, and regulators, and can even help management run the business. XBRL makes it faster and more cost-effective to extract, sort, and compare financial information across companies for investors who analyze large amounts of data.
In , there were nearly , SEC filings. XBRL provides investors with data in a usable format. How can companies enhance accuracy and trust in the data?
To date, that has not always been the case. During that period, the average number of errors identified by the committee was 7 per filing. So how can companies enhance accuracy and trust in the data? Understand judgments, refresh controls and processes, and supplement with assurance. View image. Understanding the data and judgments needed. Structured data should accurately reflect the details in company financial statements and disclosures. The XBRL taxonomy can provide information without loss or distortion of information during collection and aggregation.
Judgment is required to apply the proper tags, especially for certain company-specific information. However, when used unnecessarily, they can distort investor understanding and make it difficult to compare companies.
Enhancing accuracy through effective controls and processes. To ensure their XBRL filings are accurate, companies should have strong internal controls and processes. To that end, companies that integrate XBRL tagging into the financial reporting process, rather than bolting it on at the end or solely relying on third- party vendors, are better positioned to produce high-quality XBRL data.
Enhancing trust through assurance. However, there is currently no audit requirement in the US on the XBRL filing, only on the financial statements as a whole. But many other countries have such requirements.
US companies should consider whether auditor procedures on their XBRL-tagged data would provide further credibility. XBRL democratizes important financial statement data, making it more useful to investors. Improved consistency and quality in XBRL tagging, which can be supplemented by assurance, can improve the reliability of the data for users. To have a deeper discussion, please contact:. Link copied.
Related content 1 of. The competitive advantage of quality XBRL data. Examples 1 of. Effective date 1 of. Frequently asked questions 1 of. Industry insights 1 of. Subject matter experts 1 of. Accelerated GAAP filers were required to comply beginning with fiscal periods ending on or after June 15, All other filers will be required to comply with fiscal periods ending on or after June 15, For additional details and related guidance, see the SEC website.
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