XBRL: Solving real-world problems

Abstract

The use of eXtensible Business Reporting Language (XBRL) continues to grow since its public introduction in April 2000. For example, since April 2005, the Securities and Exchange Commission (SEC) has been encouraging Electronic Data Gathering, Analysis, and Retrieval (EDGAR) fi lers to voluntarily furnish XBRL-related documents as attachments to traditional EDGAR fi lings. More recently, the SEC has funded a US $ 54 million project to modernise EDGAR. XBRL is a key component of this modernisation and the mandatory fi ling of XBRL documents was phased in starting in 2009. In October 2005, the Federal Financial InstitutionExamination Council (FFIEC) completed a $ 39 million project that requires over 8000 banks to submit their quarterly call reports to the FFIEC using XBRL. Around the world, several stock exchanges, taxing authorities and other regulatory agencies are requiring organisations that report to them to use XBRL. Beyond the required reporting, XBRL is also providing an improved platform for such things as internal reports and consolidations. Despite the potential benefi ts of XBRL only 137 companies (out of over 10 000 fi lers) participated in the SEC ' s voluntary fi ling programme (VFP). Less than 1 per cent of the banks required to use XBRL for quarterly call reports to the FFIEC are also participating in the SEC ' s VFP. XBRL adoption appears to be sitting on the edge of the chasm between the early adopters, who are tolerant of the issues associated with new technology and are less concerned about near-term Return On Investment (ROI), and the majority of the potential market, who are more sensitive to costs, ROI and ease of use. To help XBRL move over that chasm, our study begins by conducting four focus groups to develop an understanding of the current issues and concerns faced by organisations related to accounting, fi nancial reporting and auditing. The specifi c issues and questions regarding XBRL were subsequently summarised and forwarded to selected members of the XBRL community, who were asked to suggest how XBRL addressed those issues, concerns and questions. The fi ndings are that the XBRL community feels that XBRL technology can fulfi ll the needs of the fi nancial reporting community and that further awareness within that community is needed before there will be

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