Proponents of XBRL cite many benefits. Others say that XBRL is not a panacea. XBRL offers many benefits to help drive financial reporting efficiency and accuracy, but there are a few drawbacks that you need to watch out for. In this post we’ll explore some of the ups and downs of XBRL.
The Advantages of XBRL
XBRL is a universally accepted information sharing tool. XBRL is available universally in many countries and facilitates sharing business information in many languages, on virtually any computer platform and in multiple accounting standards. Investors can access business information electronically with XBRL thereby enabling almost real-time analysis. Business information tagged with XBRL can be converted into a variety of formats including HTML, spreadsheets and databases. Because XBRL is so widely accepted, companies can increase automated information sharing with minimal implementation costs.
XBRL is beneficial for a variety of stakeholders. XBRL has broad appeal because it can be utilized by investors…
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