What is XBRL?
Over 30 regulators across the globe, including the US Securities & Exchange Commission (SEC), have mandated XBRL as the required electronic reporting format.
What are the benefits?
Value propositions — better, faster and cheaper
For several years now, momentum has been building towards a single electronic financial reporting standard which would allow more efficient retrieval and analysis of financial information. Some of the key objectives of this movement towards digital financial reporting are to provide more consistent financial information, which is delivered better, faster and cheaper. In addition, a digital format supports more informed business and investing decisions, including greater comparability within and across enterprises.
Key XBRL regulatory report benefits:
- Reduce reporting burden
- Drive down costs
- Improve data timelines
- Improve data accuracy
- Increase transparency
- Increase accurate
- Improve flexibility
What is XBRL and what does it mean for me?
Extensible business reporting language (XBRL) is the financial and operational business reporting offshoot of Extensible Markup Language (XML), which is a freely-licensable, open technology standard used to electronically exchange business information. XML is a universally preferred data description language used to describe the storage, manipulation and exchange data via the Internet.
The idea behind XBRL is simple. Instead of treating financial information as a static text — as in a standard internet page or a printed document, XBRL provides an identifying tag for each individual item of data, whether numeric or textual. This tag is computer readable and allows the information to be used interactively.
Improving execution. We can help.
EY can work with you to improve the effectiveness and effecieincy in creating XBRL formatted financial information.
EY can evaluate and provide feedback on your XBRL Exhibit as well a assist you to bring XBRL creation in-house, avoiding the need to rely on a third party to create your exhibits. That gives you more control over both the process and your XBRL adoption costs.
We provide observations on your draft XBRL exhibit and helping you design internal processes and controls for ongoing detail-tagging, allowing management to demonstrate to the audit committee and investors that the tagging process is accurate and complete.
Our risk-based approach focuses effort on areas with the highest likelihood of receiving attention from regulators. This not only reduces your risks of having to submit an amended filing due to XBRL issues or obtaining SEC comments, but it also provides cost-savings.
Learn more about XBRL and our services: