Xbrl Is a Very User-Friendly Financial Reporting Tool with Wide-Ranging Benefits.

In: Business and Management

Submitted By johnjohnson
Words 531
Pages 3
Allen, Thomas B.,CPA, XBRL and the new era: CPA review, 2004. Boorstin, Daniel J.CPA, AICPA goes 21st century, 2005

XBRL allows businesses to compare and file financial documents that are completely transferable and transparent. XBRL provides reduced costs to manage the flow of financial information. With the implementation of XBRL, businesses are provided with real time financial analysis. Essentially, creating a big picture of the state of the financials of the company, which can be produced and transferred quickly and easily allowing critical information to be compared on a local company or a global company at the click of a mouse. With the overwhelming acceptance of XBRL in the United States and the world, many businesses are voluntarily applying XBRL programming to their reporting system. Since the SEC made it legal for businesses to voluntarily use XBRL to file quarter and annual financial results, XBRL has been being used and appreciated by more and more businesses. In fact, the SEC’s voluntary program has a market capitalization total of two trillion dollars and could have been a catalyst for the SEC mandate which requires the use of XBRL financial disclosure over the next few years for publicly traded companies too. The steps in the mandate, which began (for large companies) in two-thousand nine includes: the initial adoption in year one, the increased scope of adoption in year two and the full XBRL adoption by year three. I can see a very positive very public acceptance of XBRL’s usage and effects by year three for the companies that make it. I think the reasoning behind XBRL is such that many companies can communicate with each other and the government more efficiently and effectively; there by, improving the reliability of financial reports giving people a more comfortable feeling when determining which company to do business with. When…...

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