What Is Xbrl

With the emergence of the World Wide Web and its widespread popularity, you can find almost anything on the internet. There is the ability to send and receive information to anyone anywhere instantly. It is estimated that over 75% of the United States uses the internet. With the information available and the speed you are able to send and received it, it’s no wonder that all industries are working hard to expand to internet. This is also true with financial reporting; it’s easy to understand why the internet would be an advantage. With the amount of financial information there is, and the amount of users that require it, it’s a necessity to find a fast and cost effective way to distribute it. With the use of “eXtensible Business Reporting Language”, or XBRL there is.

Simply put, XBRL is a language for the electronic communication of business and financial data. It was designed specifically for the requirements of business and financial information. XBRL provides an identifying tag for each item of data, which makes it computer readable. This is different from an internet page or printed document which is treated like a block of text. With the use of computer software, it allows XBRL to automatically process the business information. The computer software provides major improvements. For one it is a huge cost and time saving measure, as it eliminates manual entry and comparison. The handling speed of financial data is increased, and it allows for automatic checking of information, which minimizes the risk of errors. XBRL can also handle different languages and accounting standards. It can also be adjusted to me specific requirements and uses. There are also advantages of XBRL for users of the financial statements. With more efficiency and speed users are able to receive, find, compare and analyze data.

With “eXtensible Business Reporting Language” (XBRL), financial reporting is able to take advantage of opportunities the World Wide Web provides. The creators of...