The Impact of XBRL on Financial Reporting: A Conceptual Analysis
Journal Title: International Journal of Empirical Finance - Year 2015, Vol 4, Issue 2
Abstract
As changes in technology and evolution in economy continues across the globe, the requirements of financial reporting have severally been adjusted to satisfy the varying need of corporate stakeholders. This has led to the need to implore eXtensible Business Reporting Language (XBRL) in financial statements and this adoption has principally improved the development of business and financial reporting system. XBRL in business and financial reporting increases users’ confidence through the use of “bar code” and assurance service provided by the auditors. The purpose of this paper is to discuss the expected impact of XBRL on financial reporting as well as on the users of those reports. The implications for its adoption as well as the consequences on investors and accountants as companies begin to prepare reports based on XBRL are also discussed. The methodology adopted for this study is simply a desk review approach. As regulators, reporting entities and users of financial reports and other financial information are engrossed in cost savings, rising efficiencies and the excellence of information when dealing with financial reports, it is evident from the discussion of this paper that XBRL influence positively the integrity and transparency of business and financial information by allowing screening the facts of the information provided by organizations and the possibility of easy access and processing of financial information irrespective of diversity in language presentation of such reports or the application of different regulations. XBRL has the potential to play a significant role in providing machine readable reports and it offers cost savings, data integrity, greater efficiency and improved accuracy and reliability to all those concerned in using financial and business information.
Authors and Affiliations
hima Emmanuel Ib, Ibikunle Jide, Ahmed A. Zik-Rullahi
Keywords
Related Articles
- EP ID EP27186
- DOI -
- Views 385
- Downloads 12
External Reserve Management and Economic Growth in Nigeria
The study examined External Reserve Management and Economic Growth in Nigeria. Time series data for 34 years was used. Ordinary Least Square of the econometric research method was used to analyze and estimate the model...
The investigation of the effect of voluntary disclosure on earnings quality and cost of capital in firms listed in Tehran Stock Exchange
The aim of this study is to investigate the effect of voluntary disclosure on earnings quality and cost of capital in firms listed in Tehran Stock Exchange. For achieving research objectives, 93 firms are selected to be...
Impact of Some Control Mechanisms on Financial Reporting Quality
The aim of this paper is to study the impact of some board characteristics on the quality of financial information disclosed by a sample of 20 anonymous Tunisian listed companies. To this effect we will relate financia...
Neural Network and Audit Fees: A Heuristic Onset
This paper proposes a methodological approach to evaluate the determinants of audit fees by utilising Neural Networks. First, the application of NN is briefly discussed within areas of financial management; second, a m...
Corporate Governance and Firms Cash Holding in Malaysia
Corporate governance code has being introduced in many countries recently in order to improve minority shareholders right protection as well as the firms’ transparency. The corporate governance system is also being use...