A solution looking for a problem: factors associated with the non‐adoption of XBRL

Abstract

Purpose -The purpose of this paper is to explore the factors influencing the non-adoption of Extensible Business Reporting Language (XBRL) technology. Design/methodology/approach -This exploratory study analyses interview data obtained from key XBRL stakeholders on the relative importance of environmental, organisational and technological context factors to ascertain why adoption has not occurred. Findings -The research finds three reasons for XBRL non-adoption. First, the lack of a government "push" for XBRL technology results in organisational ignorance. Second, it appears that organisations do not believe that XBRL will beneficially reduce compliance costs. Third, complexity in developing the structured language (taxonomy) for XBRL use has significant budgetary implications. Research limitations/implications -As qualitative research, this study does not claim to be generalisable or objective. However, the rich data were analysed from a diverse group of interviewees experienced and knowledgeable in respect of XBRL development and adoption. Social implications -Governments' promises to reduce organisational compliance costs may be a reason for them to invest extensive taxpayers' dollars into XBRL. However, organisations are sceptical they will benefit, requiring government to "push" the technology. Until government servants can forecast the real benefits to argue for increased budgets to develop a comprehensive taxonomy, widespread adoption of XBRL is unlikely to occur. Originality/value -The non-adoption of XBRL highlights the difficulties encountered when enthusiastic professionals can see the potential of a business solution, and yet are impotent to execute it. Environmental and technological contextual factors need to "push" organisations, as with XBRL, organisations do not demand, or "pull", the technology.

XBRL for Financial Reporting: Evidence on Italian GAAP versus IFRS

“…In agreement with Cordery et al (2011) and Abdullah et al (2009), we believe that firms need a minimum of government "push" for XBRL adoption in order to be guided to explore the technology's benefits for financial reporting. Further studies should review the application of the "push" initiatives in other countries and industries while taking into account the role of XBRL users along the entire information supply chain.…”

“…According to a recent study (Abdullah, Khadaroo, and Shaikh, 2009), the adoption of XBRL is determined by stronger institutional "coercive" pressures. Another survey (Cordery, Fowler, and Mustafa, 2011) reveals that the lack of a government "push" for XBRL is the main reason restraining adoption of XBRL by firms.…”

Integrated Reporting in an Internet and Social Media Communication Environment: Conceptual Insights

“…For more critical analysis of XBRL and the potential issues associated with its use, see Cordery et al. (), Debreceny et al. (), Steenkamp and Nel () and Vasarhelyi et al.…”

An International Comparison of the Determinants and Financial Information Quality in XBRL Reporting Environment

“…Recent studies started to evaluate the reporting quality (Kim, Lim, & No, 2012;Yoon, Zo, & Ciganek, 2011), usage of XBRL reporting data by external users (Fang, J and Levine 2011;Pinsker and Wheeler 2009;Li 2012;Cordery et al 2011;Srivastava and Liu 2012;Liu and Farrell 2013;O'Riain et al 2012) and the impact towards company performance (Bai, Sakaune, & Takeda, 2012;Blankespoor et al, 2012;Jiu-jin, Fu-sheng, & Yan-feng, 2013a;B. R. Pinsker & Li, 2008).…”