XBRL Research Paper Example | Topics and Well Written Essays - 1250 words

XBRL - Research Paper Example It allows semantic meaning that is required for reporting financial and non financial information of businesses. This technology uses XML based language. The main objective of XBRL is to prepare and exchange financial information for further usage of it like analysis of financial information for investment decision making. It is a standard way to communicate with the stakeholders of the businesses through sharing financial information. Specification of standardization of information is developed and published by XBRL International Inc. The information on the XBRL platform can be freely downloaded especially the financial statements can be downloaded as spreadsheet format so that it can be easily used for further analysis (AICPA. 2012, p.1). The information will also be available in multiple languages to meet the purpose of mass target audiences. The professional users of financial statements of business like the security analysts can analyze the company’s financial information by comparing with other competitors very easily. This will be assist by getting automating filling of business information which can be easily compared with the previous financial figures. Again this helps analysts to increase speed along with high level of accuracy of data. The XBRL platform also provides the relevant definition of each reporting concepts and the relationship among various financial parameters and reporting concepts. XBRL facilitates the preparers of financial information of the companies to utilize freely accessible software to tag quarterly and annual financial information within taxonomy. This information is accomplished in an Instance Document that can be easily accessible by the target audiences. This information can be electronically exchanged and also can be validated in computers and also can be readable by the users from any part of the world. XBRL has published guideline for the users in its websites to help the preparers of financial statements (FFIEC, 2006, p.2). What information is required to be provided in XBRL? Requirement of information XBRL has been revised but there is no major change in the basic format of disclosed information in the periodic report or registration statement for new XBRL requirement. One minor change is that the companies have to provide financial statements along with the statement schedule and footnotes. The companies do not need to provide information about executive compensation and statistical disclosure of financial performance in a specific financial year. The companies must have to provide quarterly earnings reports, transition reports and annual reports. XBRL wants to extend the contents of Form 8K which will be revised and updated version of the previous financial statements of the companies duly filled with only SEC. XBRL also needs registration statement of limited security act which will update information about change of price range at the time submitting quarterly or annual financial repor t by the companies. Previously the companies need to provide amended at each time of filling in XBRL platform. For merger and acquisition of business registered with XBRL, it needs the detailed information of revised financial structure of the company and details of the acquisition value. XBRL data need registration statement of securities act which must include financial statements like Form S1 and Form S3. This incorporates the financial information provided by the company (SEC, 2009, p.23). What are the perceived benefits of XBRL? Are there any risks and/or drawbacks? XBRL is perceived to be beneficial for both the preparers and the users of financial statements. Financial analysts, regulatory bodies and investors gain more efficient and faster access financial data. This information