Introduction to Structured Data Standard: XBRL
XBRL(eXtensible Business Reporting Language) has gained popularity as one of the most popular mediums for sharing financial data among financial publishing houses, stock broking firms, security regulators, accounting organizations etc. What makes XBRL user-friendly is the fact that each information shared here has the same meaning for every recipient, ensuring minimal chances of misunderstanding. Each piece of information is tagged using an accounting label on a standardized taxonomy which is based on IFRS or US GAAP. Financial details can be quickly gathered within financial models in spreadsheets without having to be anxious about what the data signifies or spending time reading.
How does Structured Data Standard – XBRL work?
XBRL is substantially flexible for covering XBRL tags and XBRL taxonomies which are utilized for financial and business reporting in different economic sectors. Therefore, computers that are equipped with this software can accurately identify, collect, store, analyze and process business data to satisfy different objectives.
Apart from saving time and being highly efficient, XBRL language is highly convenient for making different computer-based processes, a recreation of desired types of reports and comparison/analysis of data of various organizations.
What are the benefits of XBRL?
XBRL offers manifold advantages at different stages of business reporting and analysis. These benefits are visible in cost-cutting, automation, highly accurate data handling, better data analysis and enhanced quality of information and decision making. XBRL lets producers and consumers of financial data to do away with unreasonable spending on expensive manual processes which involve time taking comparison, assembly and data re-entry.
Therefore businesses are able to focus on analysis through the use of software which can authenticate and process XBRL details. XBRL is a highly flexible language which supports all existing aspects of reporting across various domains and countries. The language’s extensible nature enables it to be adjusted to meet specific business requirements, at the level of individual organizations.
All types of companies can utilize XBRL for saving costs and cut down costs and enhance efficiency for handling financial details of a business. Since XBRL is highly extendable and flexible, it can be adapted according to various requirements. All participants in the financial supply chain can leverage, whether they are creators, transmitters or users of financial data.
Features of XBRL
A firm might use XBRL to enhance speed and accuracy of details shared through the reporting cycle. Moreover, XBRL can enhance spreadsheet controls by electronically accessing information from source systems thereby minimizing the scope of human errors. Moreover, business information tagged with XBRL exists periodically and can be reused easily.
Firms which have spent on developing taxonomies which can be utilized without incurring any costs for individuals who utilize them. There are web-based readers who go through taxonomies and web-based tools for rendering XBRL Instance files. Even Microsoft Office, a tool commonly used in all companies is XBL enabled. By using freely available from XBRL while keeping implementation costs within a minimal range. Therefore, companies can use their resources judiciously and enhance the efficiency of their business process.