Description: XBRL stands for ‘eXtensible Business Reporting Language’, a standard for exchanging business information. This XML-based language allows organizations to structure and communicate financial and non-financial data efficiently and accurately. XBRL facilitates the creation, analysis, and presentation of reports, enhancing the transparency and comparability of financial information. Its extensible design allows organizations to tailor the language to their specific needs, making it a versatile tool in financial management, compliance, and data analysis. By standardizing how data is reported and shared, XBRL helps reduce errors and costs associated with data collection and analysis, which is crucial in an increasingly digitalized and globalized business environment.
History: XBRL was developed in the late 1990s by XBRL International, a non-profit organization. Its first version was published in 2001, and since then it has evolved with multiple updates to meet the changing needs of the industry. In 2005, the U.S. Securities and Exchange Commission (SEC) began allowing the use of XBRL for financial reporting, marking a milestone in its adoption. Over the years, various jurisdictions and regulatory bodies have adopted XBRL as a standard for financial reporting, driving its global use.
Uses: XBRL is primarily used for financial reporting, allowing organizations to report their results in a standardized and understandable manner. It is also applied in audits, facilitating the review of financial data. Additionally, it is useful in data collection for market analysis and benchmarking, enabling organizations to compare their performance with that of their competitors. In the realm of financial management, XBRL helps optimize financial processes by providing accurate, real-time data.
Examples: An example of XBRL usage is the financial reporting by publicly traded companies, where they use this language to comply with SEC requirements. Another case is the use of XBRL by regulatory bodies in various countries to collect and analyze financial data from companies. Additionally, some financial management software platforms integrate XBRL to facilitate report generation and data analysis.
