XBRL Implementation Research Articles

The institutionalisation of XBRL in a developing capital market: the Indonesian regulators’ and filers’ perspective

Purpose Drawing on institutional theory analytical perspectives of theorisation and translation, this study aims to explore the institutionalisation of eXtensible Business Reporting Language (XBRL) in Indonesia from a regulatory and filer perspective. Design/methodology/approach The Indonesian capital market offers a unique case of the integration of XBRL regulatory reporting between multiple regulators and a transfer from capital market regulation to state-level regulation. This study uses semi-structured interviews with key actors employed with Indonesian XBRL-regulatory bodies and listed companies (filers). Findings External pressures, monitoring issues and tensions in the implementation process were instrumental in the theorisation and translation of XBRL in Indonesia. Specifically, the findings show that choices made with respect to XBRL regulation and implementation created tensions between XBRL reporting fulfilling a monitoring purpose and serving stakeholders’ interests. The findings also indicate that the Indonesian approach to XBRL regulation and implementation had distinct characteristics compared to XBRL implementation in other jurisdictions. Practical implications This study emphasises the necessity for robust regulatory support and strict enforcement to navigate the complexities and tensions arising from a multi-regulatory approach. Additionally, it stresses the importance of firms’ readiness and expertise in XBRL as more sophisticated implementation strategies are considered. Originality/value Using the analytical lens of theorisation and translation, the study provides a deeper understanding of how a globally diffused accounting technology was institutionalised and legitimised in a developing country. Specifically, this study explains why a conversion approach to XBRL implementation was favoured and how XBRL implementation and reporting were managed and coordinated between different Indonesian regulators.

Pengaruh Implementasi XBRL, Ukuran Perusahaan, dan Kepemilikan Manajerial Terhadap Kualitas Laporan Keuangan

This study aims to determine the simultaneous or partial effect of XBRL implementation, company size, and managerial ownership on financial reporting quality using the modified jones model in property and real estate companies listed on the Indonesia Stock Exchange in 2019-2021. This study uses quantitative methods. The unit of analysis used is a group, namely property and real estate companies listed on the Indonesia Stock Exchange in 2019-2021, and are the population in this study. By using the purposive sampling method, 66 companies were selected as research samples. The data analysis method used in this study is descriptive statistics and panel data regression analysis using Eviews 12 software. The results of this study indicate that XBRL implementation, company size, and managerial ownership simultaneously have a significant effect on financial reporting quality. Partially, company size has a significant positive effect on financial reporting quality, while XBRL implementation and managerial ownership have no significant effect on financial reporting quality.

EXPLORING USER PERCEPTION OF XBRL ADOPTION AND ITS IMPACT ON ACCOUNTING DATA IN THE SAUDI CONTEXT

This study aims to investigate the impact of XBRL adoption on accounting data in the Saudi context by examining the perceptions of accounting data users. The main objective of this research is to determine the extent to which users agree on the effect of XBRL implementation on accounting data. The research findings demonstrate that the use of XBRL improves the quality of accounting data and the efficiency of the accounting cycle. The Kruskal Wallis test does not show significant variations in users' perceptions about the effect of XBRL on accounting information. The respondents confirm that XBRL provides additional accessible accounting information. Moreover, the study reveals that accounting data users in the Saudi context believe that XBRL adoption influences the users of financial reports. While users had differing opinions on the cost-effectiveness of accounting analysis, they agreed that XBRL enables continuous auditing and enhances internal controls. Additionally, the Kruskal Wallis test does not reveal any significant variations in users' perceptions regarding the impact of XBRL on audit. Overall, the research indicates that the adoption of XBRL has a positive influence on accounting data and its utilization in the Saudi context.

A Futuristic View of Using XBRL Technology in Non-Financial Sustainability Reporting: The Case of the FDIC

The rapid use and development of information and communication technology capabilities in the public sector has revolutionized the mechanism that government agencies use to collect, process, and disseminate data. Electronic government is one of the strategic initiatives that many government agencies have considered adopting to offer efficient web-based services and operations. Although there have been efforts to examine the implementation process of technological innovations in financial and business reporting, many government agencies are about to face a bigger challenge in developing or adopting current technologies to assess their usefulness for non-financial sustainability reporting. The Extensible Business Reporting Language, XBRL, has been adopted by the U.S. Federal Deposit Insurance Corporation (FDIC) to process financial data in the quarterly call reports filed by banks. Using Rogers’ well-established theory of innovation adoption process, this paper discusses the FDIC’s XBRL implementation process and investigates the roles and experiences of the agency’s stakeholders. A case study research methodology, supported by semi-structured interviews, is used to explore each phase of the implementation process. The findings reveal that the process was facilitated by stakeholder engagement, technical support, and the agency’s strategic decision-making process. This paper contributes to the literature by examining the applications, benefits, and challenges of using XBRL technology to process non-financial sustainability data, which is still an under-researched area. Therefore, the implications for using the technology in non-financial reporting will be insightful for future regulatory adopters and their stakeholders including filer banks, software vendors, and various users of financial and non-financial information.

AN EXPLORATORY STUDY ON PROSPECTS AND CHALLENGES OF XBRL ADOPTION IN NIGERIA

The information technology revolution has profound implications on financial reporting, financial information preparers and users. Today, speed, quality, accuracy and transparency are components for timely and useful corporate reports. This study explores the concepts, potential benefits and challenges of implementing eXtensible Business Reporting Language (XBRL) in Nigeria. The study uses both primary data and secondary data sources towards achieving its stated objectives. It reviews, existing literature in the context of developing countries, to analyze the prospects of XBRL adoption in Nigeria. Whereas interviews were conducted with stakeholders relevant to the process of XBRL adoption in Nigeria. Also, the study reports XBRL adoption effort in Nigeria. Findings indicate that there is a lack of awareness about XBRL among key stakeholders, including professional accountants. It was also found that there are inter-stakeholders’ rivalry which hampered the formation of XBRL Provisional Nigerian Jurisdiction thus the drive for the implementation of XBRL requires greater cooperation and collaboration of the major stakeholders, including government regulators, professional accountancy organizations, public entities, technology experts, educators, investors and other users of financial reports. The study concludes that XBRL could benefit stakeholders across the supply chain in corporate reporting, and there were options to address the challenges. It recommends that the authorities should consider persuasion for voluntary regulatory compliance with XBRL reporting system by large entities rather than mandatory compliance. The initiative for the establishment of XBRL Nigeria Provisional Jurisdiction should be accelerated and sustained towards fast XBRL adoption in Nigeria.

AN EXPLORATORY STUDY ON PROSPECTS AND CHALLENGES OF XBRL ADOPTION IN NIGERIA

The information technology revolution has profound implications on financial reporting, financial information preparers and users. Today, speed, quality, accuracy and transparency are components for timely and useful corporate reports. This study explores the concepts, potential benefits and challenges of implementing eXtensible Business Reporting Language (XBRL) in Nigeria. The study uses both primary data and secondary data sources towards achieving its stated objectives. It reviews, existing literature in the context of developing countries, to analyze the prospects of XBRL adoption in Nigeria. Whereas interviews were conducted with stakeholders relevant to the process of XBRL adoption in Nigeria. Also, the study reports XBRL adoption effort in Nigeria. Findings indicate that there is a lack of awareness about XBRL among key stakeholders, including professional accountants. It was also found that there are inter-stakeholders’ rivalry which hampered the formation of XBRL Provisional Nigerian Jurisdiction thus the drive for the implementation of XBRL requires greater cooperation and collaboration of the major stakeholders, including government regulators, professional accountancy organizations, public entities, technology experts, educators, investors and other users of financial reports. The study concludes that XBRL could benefit stakeholders across the supply chain in corporate reporting, and there were options to address the challenges. It recommends that the authorities should consider persuasion for voluntary regulatory compliance with XBRL reporting system by large entities rather than mandatory compliance. The initiative for the establishment of XBRL Nigeria Provisional Jurisdiction should be accelerated and sustained towards fast XBRL adoption in Nigeria.

The Effect Of Green Culture And Csr On Financial Performance With XBRL Application As Moderating Variables

This study aims to examine the effect of green culture and CSR on financial performance with the application of XBRL as a moderating variable. This research method uses quantitative and secondary data. The sample used in this study is manufacturing companies listed on the IDX in 2020 with the measurement of financial performance variables using the ROA formula, green culture using an index, CSR using an index, and the implementation of XBRL using an index. The stages for the analysis method are descriptive statistics analyzing the mean, minimum, maximum and standard deviation; assumption test: assumption of normality, assumption of absence of multicollinearity symptoms, assumption of autocorrelation, and assumption of heteroscedasticity; the normality test of the data, namely the Kolmogrof-Smirnov statistical test; determinant coefficient (R2); and hypothesis testing. The results show that green culture has a positive effect on financial performance, CSR has a positive effect on financial performance, the application of XBRL strengthens the relationship between green culture and financial performance, the application of XBRL strengthens the relationship between CSR and financial performance.

XBRL technology adoption and consequences: A synthesis of theories and suggestions of future research

Research Question: This study is an appraisal of XBRL existing literature to find out what exists and what is lacking in the literature regarding the incentives of XBRL adoption, and its consequences. Motivation: The literature has not fully investigated the incentives of XBRL adoption and its consequences for the users of financial statements. The aim of this study is to synthesize current literature on XBRL adoption and its consequences. Idea: eXtensible Business Reporting Language (XBRL) is revolutionizing financial reporting on a global scale. It has the support of the world's most powerful institutions, including stock exchanges, central banks, standard setters, regulators, and other industry interests. It has attracted the attention of accounting researchers to better understand its influences on accounting and auditing professionals. Methodology: The current study uses qualitative research methods that includes a review and a synthesis of a variety of archival materials. Papers on XBRL are summarized under two main categories: incentives of XBRL adoption, and its consequences. Findings: The review suggests that the majority of publications are published in the second decade during 2011-2021 period. This result may imply that researchers try to give more answers for regulators, policy makers and standard-setters about issues related to the concrete implementation of XBRL in different contexts and countries. In addition, the current review notices that most of the previous studies that focus on the determinants of XBRL adoption are exploratory and use the qualitative method through surveys and/or interviews. While these studies extend our knowledge about the motivations that push towards the XBRL adoption, future studies could confirm these results with more objective measures. The current study notices that most prior studies focus on a single country, hence future research may use comparative analysis of XBRL adoption in different countries as it may offer a better understanding of the actual use of XBRL in diverse contexts. Further studies should consider emerging countries, and more particularly GCC countries, where XBRL technology adoption is mandatory and take into account the socio-economic culture of these countries. As a future direction, there is a need of investigation on the role of regulation in improving the use of XBRL and the extent of compliance with XBRL IFRS taxonomy. Future studies may also investigate the potential consequences of XBRL technology on financial reporting quality to give answers for standard-setters and policy makers. Contribution: Our research contributes to the existing literature by creating a foundational knowledge base that will be relevant to different stakeholders including, governments, practitioners, and researchers on the effects of implementing XBRL, as well as the relevance of such theories in explaining XBRL adoption.

The effect of XBRL adoption on corporate tax avoidance: empirical evidence from an emerging country

Purpose This paper aims to study the impact of the adoption of eXtensible Business Reporting Language (XBRL) on corporate tax avoidance. Design/methodology/approach This paper used a quantitative method with panel data regression models using a sample of firms listed on the Indonesia Stock Exchange from 2011 to 2018. Findings The regression results demonstrate that XBRL implementation does not have any impact on corporate tax avoidance. The results indicate that tax avoidance is not reduced following XBRL adoption. This report shows unexpected and unfavourable outcomes of XBRL financial reporting in a developing country. Research limitations/implications This study employs a sample of firms from one emerging country only. Practical implications The study proposes several implications for using XBRL in tax reporting, which may help the tax authorities reduce tax avoidance. Regulators need to develop adequate taxonomies with standardized extensions related to tax information in the XBRL format. They include tax tags from financial statements and tax tags from the disclosure section, to gain more comprehensive corporate tax information. Originality/value This study proposes and tests an explanation for the effect of XBRL adoption on corporate tax avoidance in the context of a developing country.

Preparers’ readiness for ESEF reporting: Early evidence from the Warsaw Stock Exchange

Due to the recent introduction of the European Single Electronic Format (ESEF) in the European Union (EU), the study aims to explore the readiness of issuers of securities traded on EU-regulated markets to report their annual consolidated financial statements prepared under International Financial Reporting Standards (IFRS) using the Inline XBRL technology. The paper also offers preliminary insights into their selection of Inline XBRL implementation strategies. The study was conducted in the form of an online survey, with evidence being solicited from issuers of securities listed on the Warsaw Stock Exchange in Poland, whose financial reports were prepared in conformity with IFRS. In doing so, 35 representatives of public companies participated in our study, 25 of whom correctly completed the questionnaires. The results reveal that during the time frame of the study, the vast majority of surveyed organizations have already been in the process of adjusting their corporate procedures, practices, and infrastructures to the ESEF reporting requirements. In the context of theoretical preparedness, one of the significant findings to emerge from this study is that respondents acquired their expert knowledge in the field of ESEF mainly from webinars, conferences, training courses, and workshops. In turn, relating to practical readiness, the results indicate that respondents intended to use off-the-shelf tools or employ third-party service providers to produce Inline XBRL instance documents. Their decision to choose Inline XBRL implementation strategies, based on outsourcing and the bolt-on approach, aimed to comply with new regulations or to prevent modification of existing corporate reporting procedures and practices. Therefore, this study contributes to prior literature on XBRL and Inline XBRL standards adoption as well as implementation by focusing on the perspective of actors directly involved in the mandatory transition to the ESEF reporting regime.

The implementation of InlineXBRL in Polish listed companies – early evidence

Purpose: The paper presents early evidence from GPW Main Market-listed companies on the implementation of the InlineXBRL format and the ESEF mandate. Methodology/approach: Semi-structured, detailed interviews with GPW issuers are the basic research method used. Representatives of ten listed companies were interviewed. Results: The study indicates that InlineXBRL implementation is a challenge that involves significant human, time and financial resources. Moreover, it reveals that the only reason for XBRL implementation among Polish issuers is compliance with statutory requirements rather than other XBRL benefits. Ninety percent of respondents implemented the bolt-on approach, which enables fast compliance with statutory requirements; however, it does not support internal reporting and does not facilitate the financial reporting process. The study results are consistent with XBRL implementation evidence from American early adopters and confirm the thesis that an XBRL mandate is the main driver of XBRL dissemination. Limitations: The relatively small research group (10 companies). Originality/value: This study is the first in this field conducted in Poland, and this paper claims to be the first Polish one to name, structure and describe InlineXBRL implementa-tion options.

Enhancing Company Financial Transparency for Contractor Selection Process through XBRL: A Conceptual Framework

Amongst the predicament in selecting a contractor for project implementation is to identify a resilient partner who can withstand the financial impact posed by project risks and constraints. For that matter, decision-makers require full transparency of financial information of the candidates for an effective contractor selection process. In the context of Malaysia, authorities are adopting Extensible Business Reporting Language (XBRL) to convey information about companies financial standing. This study is aimed to develop a conceptual framework in utilising the increase of information brought along by XBRL implementation to facilitate transparency as required by decision-makers during the contractor selection process. This article is also articulating on factors to promote adoption of online business reporting to increase information integrity, recency and contextually to increase the transparency.

PENGARUH PENERAPAN XBRL TERHADAP KETEPATAN WAKTU PELAPORAN KEUANGAN (Studi Empiris pada Indeks LQ45 di Bursa Efek Indonesia Tahun 2016-2018)

This study aims to provide empirical evidence about the effect of XBRL implementation on the timeliness of financial reporting of public companies in Indonesia registered in the LQ45 index. The research method uses panel data with 99 observations from 2016 to 2018. The results show that the implementation ofXBRL has a positive and significant impact on the timeliness offinancial reporting, in contrast to the Debt to Equity ratio used to control company leverage has a positive andinsignificant impact on accuracy financial reporting time, as well as Return on Assets used to control the profitability of the company has no significant effect with a negative impact on the timeliness of financial reporting of public companies in Indonesia that are listed on the LQ45 index.

Twenty years of XBRL: what we know and where we are going

PurposeThis paper aims to extend the knowledge of eXtensible Business Reporting Language (XBRL) to synthesize what 20 years of accounting and business literature on XBRL suggests about the effective improvement from its implementation in financial reporting.Design/methodology/approachA systematic literature review and bibliometric analysis of 142 articles resulted in the identification of 5 primary research streams: adoption issues; financial reporting; decision-making processes, market efficiency and corporate governance; audit and assurance issues; and non-financial reporting.FindingsThe results reveal a scarcity of studies devoted to explicating the consequences of XBRL implementation on financial reporting outside the SEC’s XBRL mandate and listed companies’ contexts. Also, some papers’ results question the usefulness of the language on the decision-making process. The overall lack of literature concerning the impact of XBRL on financial statement preparers, especially with reference to SMEs, is evident. Moreover, the consequences on corporate governance choices and the relevant internal decision-making processes are rarely debated.Research limitations/implicationsThe findings are useful for users of companies’ financial disclosure policies, particularly for regulators who manage XBRL implementation in countries where XBRL has not yet been adopted as well as for others working in specific areas of financial disclosure, such as non-financial reporting and public sector financial reporting.Originality/valueThis study differs from previous literature on XBRL as it focuses on a wider period of analysis and offers a unique methodology – combination of bibliometric and systematic review – as well as a business perspective for deepening XBRL.

XBRL reporting standard: implementation issues

The advent of electronic reporting has necessitated the use of a universal reporting standard. One of the trends in reporting development is the use of the popular XBRL format in most countries of the world. The article is devoted to the disclosure of the implementation of the XBRL reporting standard in Ukraine. For this purpose, the emergence of XBRL is briefly described, as well as its potential distribution in different countries of the world is evaluated. Based on the research of scientific works, as well as taking into account practical experience, the advantages from the implementation of XBRL are summarized for such user groups as government agencies, investors and company management. Taking into consideration the expectations of reporting users, the conditions of the implementation of XBRL are critically evaluated.This allowed us to distinguish four groups of issues: organizational (insignificant number of properly trained specialists); regulatory (approval of mandatory certification of software and specialists); software and hardware (deficiencies in the financial reporting system); financial (significant costs for the implementation of the XBRL standard). Their presence is also confirmed by the fact that the presentation of financial statements on the basis of a taxonomy according to international standards in electronic form for the reporting 2020 was postponed to 2021. The main directions of ensuring the effectiveness of the implementation and use of the XBRL format are identified, in particular the improvement of legal regulation, the development of telecommunications and its infrastructure, the training of specialists in the field of XBRL and IFRS as well as the ensuring the openness and transparency of enterprises and government bodies.

The impact of XBRL on real earnings management: unexpected consequences of the XBRL implementation in China

In this paper, we investigate whether there is a change of real earnings management for firms facing pressures of the new technology implementation of eXtensible Business Reporting Language (XBRL). We find that real earnings management increases after the implementation of XBRL in China, especially under the dual regulation of XBRL policies from two regulators (China Securities Regulation Committee and Ministry of Finance). Given the long term detrimental effect of real earnings management on firm value, this could be unexpected consequences of XBRL technology in emerging market. Furthermore, state-owned enterprises and non-state-owned enterprises behave differently under the dual regulation of XBRL policies.

The Timeliness of XBRL Filings: An Empirical Examination

ABSTRACTThis study examines the timeliness of XBRL data filings. To be timely, the XBRL data must be filed concurrently with the 10-K filing. Using a matched sample of non-timely (NT) and timely XBRL filers over the period 2009–2016, we investigate factors associated with the timeliness of XBRL. We find that NT XBRL filings are more likely when the filing is more complex and when the filer changes auditors. In contrast, using a service provider with more experience and a Big 4 auditor are positively associated with XBRL filing timeliness. NT XBRL filers also experience more negative market-adjusted stock returns compared to the timely XBRL filers. These findings may inform regulators about the implementation of XBRL. Regulators may want to consider these factors in future efforts to use technological advances to improve accessibility to information.JEL Classifications: M15; M48.

Dampak Implementasi XBRL terhadap Risiko Informasi

This study aims to determine the impact of the implementation of XBRL on information risk for corporate financial reporting. The population in this study were all manufacturing companies listed on the IDX from 2012 to 2017. The samples in this study were obtained by purposive sampling method with the criteria (1) Manufacturing companies listed on the IDX in 2012 to 2017 (2) Having complete research data. The sample used in this study amounted to 84 companies registered in IDX in 2012 to 2017. Data analysis technique used multiple regression analysis to see the effect of XBRL implementation on information risk with company size and leverage as control variables. The results of this study indicate that the implementation of XBRL has a significant negative effect on information risk; Firm size and corporate action have a significant positive effect on information risk and leverage has a significant negative effect on information risk. Financial reports that use XBRL will reduce information risk so it can help stakeholders to make a good quality business decisions.

Does XBRL Adoption Constrain Earnings Management? Early Evidence from Mandated U.S. Filers

ABSTRACTWe examine whether the use of eXtensible Business Reporting Language (XBRL) for financial reporting (i.e., interactive data submissions) reduces earnings management during the period of XBRL implementation by the SEC. Using a sample of mandated XBRL filers, we compare the magnitude of absolute discretionary accruals in the XBRL adoption quarters with that in the non‐adopting quarters. We also take advantage of staggered (three‐stage phase‐in) XBRL implementations to perform difference‐in‐differences analyses. Our results show that absolute discretionary accruals decrease significantly from the pre‐ to the post‐XBRL period, suggesting that XBRL adoption constrains earnings management via discretionary accrual choices. Our analyses further reveal that the use of standardized official XBRL elements significantly reduces the levels of discretionary accruals, while the use of customized extension elements does not, suggesting that the former discourages accrual‐based earnings management, while the latter does not. Our results are robust to a variety of sensitivity checks.

ADOPSI XBRL TERHADAP PERILAKU PERDAGANGAN INVESTOR DI BURSA EFEK INDONESIA

This study aims to investigate the impact of XBRL adoption to trade behavior of investors in the Indonesia Stock Exchange which is reflected by frequency of stock trade. The sample of this study is 34 banks taken randomly from 81 banks listed in the Indonesia Stock Exchange in 2014 and 2016. The data analysis methods used in this study are one way ANOVA for difference test and multiple regression analysis to test the impact of ROA, size and dividend ratio to XBRL adoption. This study found that the frequency of stock trade and ROA as control variable doesn’t change when XBRL is applied. This result is caused by financial data taken when post-XBRL is financial data in 2016, whereas implementation of XBRL has started since 2015. But, size and dividend change in the period of post-XBRL.