XBRL (Extensible Business Reporting Language) is a freely available XML-based specification, which enables the setting up of standardized ways to label financial and other business information.
XBRL is an XML-based standard, which can be used efficiently across all platforms and operating systems. We can create applications using XBRL to manage business information effectively. XBRL is used to mark up the content in financial and business documents. The XBRL framework will provide a standards-based method to prepare, publish, extract and import financial statements and other business information.
Good business software applications, including accounting and ERP systems, tax applications, business performance metrics systems, etc. will insert XBRL tags automatically. XBI and other software firms will create software to add XBRL tags to older data or for those using non XBRL-compliant software.
XBRL will not establish new accounting standards or evaluate GAAPs (generally accepted accounting principles). However, it enables us to use them effectively. It does not change the language used in financial statements, (each corporation or accounting firm will continue to use the language that suits them,) but it enables developers to create software with which it will be easy to compare and manipulate financial data effectively.
The cost to implement XBRL should be minimal for corporations, accounting and consulting firms, but in the beginning, it will be in their interest to demand XBRL tagging in the software that they use.
Companies who publish business reporting information in XBRL will be creating a means for communicating their data to a universal audience. This can be accomplished because the XBRL specification is designed to be the same for all companies and is consistent from one financial statement to another.
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