XBRL: The standardised business language for 21st century reporting and governance

Abstract

XBRL — Extensible Business Reporting Language — is a collaboratively developed framework for creating standardised and customisable digital representations of financial statements, tax returns and other detailed and summarised business reports and data extracts. Formed by the accounting profession and now involving software developers, regulators, analysts, users and other members of the Business Reporting Supply Chain, XBRL is experiencing global development and adoption. XBRL's potential benefits of increased efficiency and new transparency have brought global market interest, including the Securities and Exchange Commission's (US) XBRL Voluntary Filing Program. The change to digital reporting brings both opportunities and challenges to corporate governance and disclosure. The opportunities facilitated by digital reporting include not only more reusable digital formats, but more types of information being delivered on a far more frequent basis, as well as improved internal reporting and a better controls environment. Those responsible for corporate governance have the opportunity to influence the acceptance and use of XBRL, as well as the responsibility to consider the policies, procedures and practices their organisations need to develop.