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eXtensible Business Reporting Language - Research Paper Example
Finance & Accounting
Pages 4 (1004 words)
Extensible Business Reporting Language Name: Institution: Course: Tutor: Date: Introduction In the contemporary technology savvy world, the need for a more interactive information sharing tool has grown immensely. Extensible Business Reporting Language (XBRL) refers to computer language that was developed to facilitate electronic communication business as well as financial data…
Currently, the SEC requires that all companies should utilize the XBRL format in presenting their financial statements and reports. Owing to the constant push for the use of the new business and finance communication mode, this paper explores potential advantages and disadvantages of XBRL implementation for business entities. Advantages of XBRL The proponents of XBRL have hinted that entrepreneurs and business entities stand to benefit greatly from XBRL implementation. Some of these befits include: i. It Is Accepted Globally As a Business Information Sharing Tool XBRL is readily accessible in many parts of the world and enhances information dissemination and sharing in various languages through electronic means. XBRL makes it possible for investors to conduct nearly real-time assessments because increases information accessibility. Data tagged in XBRL can be transformed into various formats such as HTML or spreadsheets, depending on the needs of the users. Owing to its global presence and high level of accessibility and acceptability, it reduces the cost of mechanizing business information (Gelinas, Dull & Wheeler, 2012). ii. XBRL Benefits Many Stakeholders XBRL can be utilized by investors to perform analysis of financial reports by corporation, thus making it a desirable tool. ...