What is XBRL why is it is important?

XBRL is eXtensible Business Reporting Language for electronic communication and reporting of financial data around the world. It provides a XML based platform being followed by corporates globally that helps in formulation and analysis of financial reporting and allied areas.

What is the benefit of using XBRL?

XBRL offers major benefits at all stages of business reporting and analysis. The benefits are seen in automation, cost saving, faster, more reliable and more accurate handling of data, improved analysis and in better quality of information and decision-making.

What are the main purposes of extensive business reporting language XBRL )?

XBRL or eXtensible Business Reporting Language is a software standard that was developed to improve the way in which financial data is communicated, making it easier to compile and share this data.

How does XBRL make business report more efficient?

XBRL increases the speed and frequency with which information can be prepared, reported and used. XBRL makes information more useful and more useable. XBRL makes it easier for companies and governments to report and for stakeholders and regulators to quickly access and analyse information.

How does XBRL helps improve quality of financial reporting?

XBRL puts more complete, accurate, timely information in the hands of management. This facilitates better decision-making. It also enables better reporting to other parts of the chain that need to have a clear understanding of the business. Further, XBRL allows greater control over reported information.

What is extensive business reporting language?

XBRL is a language for e-communication of financial and business data for business reporting. It is a standardized communication language in electronic form to express, report or file a financial statements by a Companies.

How XBRL affect financial information reporting?

Besides that, XBRL as an Internet-based language in web-based reporting and disclosure technology has enabled the users of financial reporting including government, financial analyst, investors and others user of financial information to easily extract, use and analyze firm’s financial information in a minute [10].

How does XBRL impact the general ledger and reporting system?

XBRL GL allows those transactions to be aggregated or rolled up for a wide variety of reporting purposes, while retaining the ability to drill back down to the detail. Because the connections between counter-parties and products can be retained, XBRL GL can also be used to manage eliminations between related accounts.

Which of the following statement is not correct for eXtensible Business Reporting Language XBRL )?

Answer and Explanation: Answer choice D) XBRL’s adoption will require accountants and systems professionals to tag data for their clients.