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XBRL stands for extensible business reporting language. XBRL allows company to use tag for each individual data. So it helps business analyze their financial results more efficiently.
Companies of all types and sizes can benefit from XBRL. The most significant reasons are as follows:
1. Focus on decision making and data analysis rather than mechanics work like gathering and inputting data
For examples, with XBRL, 15 percent of time is spending on data processing. 85 percent of time can be used for other process .The company can either use the time on their research of competitive competitors, or they can spend time on conduct on risk analysis.
2. Improve the efficiency of transmission on the web service
XBRL is ideal for use in web services. Since Web services are based on XML standard, the company can use XBRL, which just enhanced the standard by providing extended consistency.
3. Improve the accuracy of financial data
Automated composition and processing financial report can reduce the error occurred at any step in manual financial data aggregation process.
XBRL is used to digitally publish financial statements and other relevant accounting disclosures of companies of all makes and sizes, both public and private.
Here are the steps which show how XBRL works:
1. The company obtain the data from the client
2. Client data is converted in to XBRL
3. XBRL information flows freely across the Internet
4. XBRL-tagged data is mapped into bank’s chart of accounts
5. XBRL data is uploaded to the system of record
Accountants have to stay up to date on XBRL standard. Major accounting firms are important members of the XBRL Consortium. Training and information sessions are always held in the conference. The 16th XBRL international conference will be held in Vancouver, Canada in December 2007. KPMG provides the detailed tutorial and in-depth technical training prepared by corporate IT professionals on the aspect of XBRL. CICA also recommend as a globe standard for e-filing and e-reporting.
Reference:
1. http://www.xbrl.org/Companies/
2. http://www.xbrl.org/Business/General/SoftwareAG-CaseForXBRL.pdf
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1 comment:
Elaine,
I’d like to introduce you to a new offering that will enable your firm to have an XBRL/Interactive Data solution today and be prepared for the pending SEC mandate.
NeoClarus has recently launched iFile, a true self-service application enabling users to quickly and easily create XBRL filings. This web based turnkey application can be used in-house, or offered to your clients as a branded solution.
Mapping financial data to the taxonomies is now as simple as pointing and clicking. From preparation, validation/auditing, to sharing, iFile empowers users to create XBRL filing document, without any IT expertise.
With iFile Filers can:
• Get started on XBRL in no-time.
• Extend XBRL filing service to all your clients within matter of days not weeks or months.
• Validate/Verify the correctness of the XBRL documents easily.
• Enable users to access the filing application anytime, anywhere.
• Easy collaboration with its customers.
• Do not have to pick up the liability, at the same time get a valid XBRL document from your customers.
I’d like to discuss how we may work together, please contact me at 408-858-4994, or email me at john@neoclarus.com or for the free trial go to: http://ww.neoclarus.com
Sincerely,
John Gardner
Vice President, Business Development
john@neoclarus.com
www.neoclarus.com
408-858-4994
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