XBRL Taxonomy Research Articles

METHODOLOGICAL FOUNDATIONS OF THE SIMPLIFIED ACCOUNTING SYSTEM IN THE CONTEXT OF DIGITALISATION IN UKRAINE

The article is devoted to the problems of the methodology of simplified accounting in Ukraine. The purpose of the article is to generalise the methodological basis of simplified accounting, as well as to identify the transformation of the components of the methodology of simplified accounting in the conditions of digitalisation. Methodology. The analytical method was used to identify the components of the simplified accounting methodology. Clarification of the conceptual apparatus was carried out using the method of induction based on the generalisation of the views of scientists and changes in the business environment. The comparative method was used to study the regulation of simplified accounting in Ukraine and Europe. The monographic method was used to describe the research results. Results. The nature of the activity of small enterprises requires simpler accounting methods, valuation methods, simplification of documentation, reporting, partial rejection of double-entry accounting, etc. The simplified accounting system adapts the theory and methodology of accounting to the economic practice of an individual small business. The methodological basis of the simplified accounting system are the constituent elements of the accounting methodology, the change of which is necessary and sufficient for the formation of a simplified accounting system, which differs from the general one. The digitalisation of the processes of collecting, processing, disseminating and storing information causes transformation processes in the methodology of simplified accounting aimed at the formation of the space of digitalised economic information. Practical implications. The requirements of the business environment and digitisation processes have been disclosed. The conceptual apparatus was clarified based on the analysis of regulatory documents. The transformation of the methodological bases of the simplified accounting system has been identified, which will ensure the adoption of the principle of stakeholder orientation, the development of simple and simplified forms of accounting, and the creation of the space of digitised economic information. The article identifies the need to introduce an XBRL taxonomy for simplified accounting, consistent with the main taxonomy, which is a necessary component of digitisation of simplified accounting. Value/Originality. Focusing on stakeholders and promoting digitalisation will help to increase understanding and manageability among small businesses.

Using XBRL for Sustainability Reporting under the European Green Deal

The European Green Deal brings into attention a new strategy to support the transition to a society that will meet the challenges of climate change and environmental degradation, improving the quality of life. Given the multitude of actors involved in the process of collecting, processing and communicating information on the impact of different activities on the environment and citizens, it is necessary to have a legal framework on sustainability reporting as rigorously as possible, in order to ensure the comparability in time and space of the information provided. For this information, reported at the European Union (EU) level, to allow decision-making at the right time, it is necessary to use digital technologies to facilitate the process of collecting, analysing and interpreting information. In this paper the authors tried to offer a practical example on how eXtensible Business Reporting Language (XBRL) works in order to highlight the benefits of this modern language in the context of the Green Deal. In this regard, using Altova MissionKit 2023, the authors designed an XBRL taxonomy which is the basis for the development of an instance in which we find some representative indicators for the circular economy, an environmental objective of the EU taxonomy. The XBRL language simplifies the transfer of information from sustainability reports prepared in different countries to the European Commission, improving and accelerating the decision-making process.

한국의 국제재무보고 표준언어(XBRL)의 정착을 위한 대응방안

This study aims to provide a reasonable basis for the feasibility of introducing XBRL based on a review of prior studies on the usefulness of XBRL and a correlation between IFRS and XBRL disclosures to facilitate financial statements disclosure using the XBRL. In addition, by comparing the current status of the introduction of XBRL in major countries, an applicable improvement plan in Korea is derived. Prior studies on the usefulness of XBRL argue that financial statement information structured by the introduction of XBRL has a low possibility of error and earnings management, and high convenience of analysis. As a result of reviewing the relationship between IFRS and XBRL disclosures, the XBRL provide the content as it is in a structured form, rather than by changing the content of existing financial statements. And just as XBRL taxonomies are developed and updated in due process based on the principle-based IFRS by IASB, it is expected that the comparability between countries will be significantly improved if authoritative bodies update taxonomies appropriately reflect their disclosure practices. And it was found that both the United States and the EU are introducing XBRL more strongly than Korea. The U.S. requires all listed companies and some other companies to apply Inline XBRL to prepare financial statements and notes in 10-Q and 10-K reports. The EU requires all listed companies to apply Inline XBRL to prepare consolidated financial statements in annual reports. The U.S. and the EU are led by supervisory agencies over the underlying laws, but in Korea, it is judged that the introduction of XBRL is not smooth. Therefore, in order to revitalize the introduction of XBRL in Korea, it is necessary to prepare a clear legal basis for the introduction of XBRL, and to create an stakeholder-centered XBRL ecosystem based on this.

The Utilization Ratio and Interoperability of Corporate-Level XBRL Classification Standard Elements in China.

Given the rapid development of the digital industry, the international use of XBRL as a computer language for the exchange of corporate financial data is of great significance in promoting the standardization of financial data. This paper provides an in-depth study and quantitative measurement of the applicability of the Chinese XBRL common taxonomy elements in enterprises, examining the interoperability of the elements between enterprises and the possible absence and ambiguity of the elements. The research study shows significant differences between the elements of XBRL defined in the general classification standard and the elements used in financial reports of listed companies in China. Furthermore, the quantitative interoperability model results show significant differences in the interoperability of elements between companies in the same industry and the same category of industries. Therefore, updates to the Chinese XBRL taxonomy should start from the underlying logic of accounting and improve the process of calling the elements in the accounting process.

A Study on Financial Accounting Disclosures in Ind-AS XBRL Taxonomy -A Case Study of IT Companies.

Financial accounting disclosure is of great significance in accomplishing the objectives of the financial reporting system. The present study focuses on the financial accounting disclosure elements in Ind-AS XBRL taxonomy and examines the level of disclosure in XBRL reports based on Ind-AS XBRL taxonomy. The study considers a convenience-based sample of five IT companies chosen from NSE Nifty 50 companies. XBRL reports of selected companies are collected. The content analysis technique is applied to count the number of disclosure items of the selected companies. The disclosures were subject to frequency/percentage analysis and descriptive analysis such as mean and one-sample t-test. The results of the study reveal the taxonomy elements of financial accounting disclosures in the Ind-AS XBRL taxonomy and conclude that there is a significant increase in the level of disclosures in XBRL reports based on the Ind-AS XBRL taxonomy. Keywords: Financial Accounting Disclosures, IND-AS XBRL Taxonomy, XBRL

Global Sustainability Reporting in the Automotive Industry via the eXtensible Business Reporting Language

Sustainability measurement has become one of the most important topics for automotive manufacturers. The financial reporting practice has been faced with an increased digitization and standardization process, which was enabled by the either voluntary or required implementation of the eXtensible Business Reporting Language (XBRL) platform. The obligatory adaption appeared in European legislation, which covers both financial, and non-financial information. In the current study, we have made a comparison of the most significant European and American automakers' sustainability reports data content to utilize the sustainability XBRL taxonomy adaptation. Using literature, the development of disclosure requirements was reviewed, following which the adaptation to global sustainability standards (GRI, SASB) in reporting was examined from a qualitative point of view, using a text mining methodology. It has been concluded that by the biggest automotive manufacturers the conditions are currently met to a limited extent, but the most significant obstacle is the lack of linking sustainability information to financial impacts. If the financial regulations require OEMs to adapt, and potentially disclose negative information (such as pollution data, penalties) may negatively affect investor perception. Based on the review XBRL is capable to become a global standard, however, reported contents should be carefully audited and linked to objectively verifiable financial data to provide relevant information to investors, decision-makers.

Mandatory ESG Reporting and XBRL Taxonomies Combination: ESG Ratings and Income Statement, a Sustainable Value-Added Disclosure

Corporate financial statements address multiple stakeholders’ needs. International Financial Reporting Standards (IFRSs), among others, allow two different classifications, “by function of expense” and “by nature of expense”, for the statement of profit and loss and other comprehensive income for the period (from now on, also identified in short as “Income Statement”, or “IS”). XBRL standards ensure compliance and consistency in financial statements’ drafting and filing. XBRL taxonomies reflect the Income Statement IFRS disclosure requirement in the {310000} and {320000} codifications, respectively. Given the recent EU enhanced regulations that proposed extend mandatory ESG reporting to SMEs, this study aims to design and recommend an additional Income Statement to embed structured Environmental, Social, and Governance (ESG) disclosure. A restatement of the IS is organised following an adjusted Value-Added perspective to fit the purpose of sustainability disclosure. The above-mentioned Income Statement should be suitable and adaptable for entities of any size and operating in any industry. This goal can be achieved through customised input weighting. Therefore, this applied research can fill a current financial ESG disclosure gap, ensuring financial statements’ comparability and encouraging additional mandatory disclosures through standardisation. Two more items in the XBRL (IFRS-based) structure are suggested, leading to the introduction of one fully structured statement “{330000}—Statement of comprehensive income, profit or loss, by Added Value, ESG based” and a semi-structured “{814000}—Notes—ESG Ratings and Reporting” to better discuss and disclose the assumptions and results of the ESG Statement.

Розвиток бухгалтерського обліку у вимірі міжнародних стандартів фінансової звітності та інноваційних технологій: методологія та практика: монографія (Development of Accounting in Terms of International Financial Reporting Standards and Innovative Technologies: Methodology and Practice: Monograph)

Ukrainian Abstract: Монографія присвячена актуальним проблемам розвитку методології та практики бухгалтерського обліку у вимірі міжнародних стандартів фінансової звітності та інноваційних технологій. Досліджені історичні аспекти започаткування концепцій фінансової звітності, як фундаменту МСФЗ. Виокремлені макроекономічні детермінанти у становленні МСФЗ на локальному рівні. Проведена кількісна та якісна оцінка перспектив розвитку МСФЗ як глобальної стандартизації. Розроблена методологія обліку всіх елементів фінансової звітності відповідно до нової Концептуальної основи фінансової звітності та МСФЗ. Встановлена нормативна неузгодженість між теперішніми концепціями та правилами стандартів у контексті їхньої взаємодії на методологічному рівні. Проаналізована пріоритетна база оцінки в МСФЗ. Обґрунтовані шляхи вирішення нових питань та протиріч в обліку за МСФЗ під впливом інноваційних та методологічних змін. Запропоновані зміни до нормативно- законодавчої бази України та національних стандартів бухгалтерського обліку, які узгодять вітчизняні вимоги до ведення обліку та звітування із міжнародними в контексті нових викликів для цифрової економіки України. Наведений вплив нових змін у МСФЗ на вітчизняні та міжнародні фінансові звіти, їх співставність та аналітичність. Виокремлені нові складові сучасної та майбутньої парадигми звітування. Надані рекомендації щодо удосконалення процесу впровадження Таксономії UA XBRL МСФЗ на мікро- та макрорівні країни, в тому числі в освітні процеси підготовки фахівців у сфері бухгалтерського обліку. English Abstract: The monograph is devoted to current issues of accounting methodology and practice in measuring international financial reporting standards and innovative technologies. The historical aspects of the beginning of the concepts of financial reporting as the foundation of IFRS are studied. The macroeconomic determinants in the formation of IFRS at the local level are singled out. A quantitative and qualitative assessment of the prospects for the development of IFRS as a global standardization. A methodology for accounting for all elements of financial reporting in accordance with the new Conceptual Framework for Financial Reporting and IFRS has been developed. The normative inconsistency between the current concepts and rules of standards in the context of their interaction at the methodological level is established. The priority assessment base in IFRS is analyzed. Ways of resolving new issues and contradictions in accounting under IFRS under the influence of innovative and methodological changes are substantiated. Amendments to the regulatory framework of Ukraine and national accounting standards are proposed, which will harmonize domestic requirements for accounting and reporting with international ones in the context of new challenges for the digital economy of Ukraine. The impact of new changes in IFRS on domestic and international financial statements, their comparability and analytical nature is presented. New components of the current and future reporting paradigm are identified. Recommendations for improving the process of implementation of the UA XBRL Taxonomy IFRS at the micro and macro levels of the country, including in the educational processes of training in the field of accounting.

РАЗВИТИЕ УЧЕТНОГО, АНАЛИТИЧЕСКОГО И КОНТРОЛЬНОГО ИНСТРУМЕНТАРИЯ НА ОСНОВЕ XBRL ТЕХНОЛОГИЙ

Global automation of activity of business entities and wide application of accounting information systems allows to consider them as an analytical platform for compilation of reports and quality control of forming data. The article devoted to consideration of the problematic issue of development of accounting, analytical and control tools using XBRL (eXtensible Business Reporting Language) technologies. The study of the possibilities of implementing XBRL to increase transparency of reporting and optimize procedures for monitoring the activities of economic entities of the Russian Federation was carried out on the basis of a comprehensive analysis of international experience, since the expanded extensible business reporting language provides the opportunity to create documents and further their placement on the Internet for the convenience of use by all stakeholders. The experience of the internationally recognized company Fujitsu has highlighted the advantages of implementing XBRL taxonomies, so its adaptation is recommended to increase transparency of reporting and optimize control procedures of Russian companies. The author proposes to use XRBL taxonomies to develop the functions and control tools used by external and internal supervisory authorities, as well as to form an integrated control system formed on the basis of COSO principles and including a risk and control matrix (RCM). The development of accounting, analytical and control methods based on XBRL taxonomies will ensure transparency of financial and non financial data for investors, creditors, shareholders, suppliers and other interested users (stakeholders) of information data

EARLY EVIDENCE ON THE XBRL ADOPTION PROCESS IN MALAYSIA: DRIVERS AND CHALLENGES ON THE TECHNOLOGICAL PERSPECTIVE

Purpose: This study aims to identify technological factors and how these factors influence the XBRL adoption process of the regulators in Malaysia.
 Methodology: This paper applied Rogers’s (1983) adoption process and DiPietro, Wiarda, and Fleischer’s (1990) Technological, Organisational, and Environmental (TOE) framework. The paper adopted a case study approach consisting of an interview and document analysis. The data has been analysed with thematic analysis.
 Results: This paper shows ten (10) factors within the technological perspective—the relative advantage as driving factor while trialability are the challenging factor in the knowledge and persuasion phase. In the decision-making phase, compatibility of XBRL taxonomy and stability production of XBRL instance documents are the driving factors whilst stability of XBRL taxonomy, standardised XBRL taxonomy, standardised XBRL submission, availability of tools and software and observability are challenges in the XBRL adoption process. In the implementation and confirmation phase, the complexity of the XBRL taxonomy is considered a challenge in the XBRL adoption process.
 Implications: The findings in this paper serve as strategies to the other regulators that have plans to adopt XBRL as well as to attract the different government agencies to start with XBRL for reporting.

Taxonomy of financial reporting in compliance with international standards: practical aspects

Financial reporting is an important part of economic life. The order of preparation and submission of financial reporting is formed under the influence of various factors, including the following ones: the state of the economy, the level of information technology development, the needs of stakeholders, and others. Strengthening of the trends in digital transformation of economy resulted in the emergence of new trends in financial reporting or certain modification of existing ones. The place and role of electronic format for submitting the financial recording according to XBRL Taxonomy in compliance with International Financial Reporting Standards are investigated in this paper. Creation of digital, unambiguous, accurate, and multiple versions of financial reporting is one of the main features of XBRL standard. Theoretical and methodological statements of XBRL format application for reporting based on IFRS Taxonomy are determined, its defining features and advantages are investigated. The prospects of XBRL technology use are proved, since business reports in this format facilitate the search of data for financial reporting on the Internet and the possibility of their automatic analysis. IFRS Taxonomy improves communication between compliers and users of financial reporting that comply with IFRS Standards. The distinctive feature of financial reporting based on XBRL electronic format is its flexibility, and therefore XBRL reporting is becoming more popular. The transition of domestic companies that are required to report under IFRS to statutory report in the XBRL Taxonomy format requires the assessment of their technical and resource capacities. Problematic issues on the way of introduction the taxonomy of financial reporting UA XBRL IFRS are outlined. Particularly, the need to develop software products adapted to the Ukrainian taxonomy is highlighted. Therefore, in Ukraine there is the growing need to train specialists with sufficient level of knowledge in both XBRL and IFRS. Further maintaining the trend of priority of the electronic reporting format will contribute.

Factors Influencing Knowledge and Persuasion of Financial Regulators in the XBRL Adoption Process: The Technological Perspective

This study examined the factors influencing XBRL adoption process among the Malaysian regulators in the financial reporting environment. Specifically, this study aims to examine the drivers and challenges in the knowledge and persuasion phase faced by the Malasyain regulators in their adoption process of XBRL. This study relied on two frameworks namely, the adoption process framework with specific focus on knowledge and persuasion, and the TOE framework focusing on technological context. Using a qualitative approach, this study found that within the technological context, relative advantage and trialability were the drivers in the knowledge and persuasion phase. This study also found that the regulators were aware of XBRL and had made efforts to understand the XBRL taxonomy. However, the regulators were needed to develop the internal capability of their organisations since different regulators have shown different factors during the knowledge and acquisition phase that is necessary for XBRL adoption. The findings in this study serve as guidelines to other regulators in Malaysia and other countries that have plans to adopt XBRL.

XBRL based Corporate Tax Filing in Indonesia

eXtensible Business Reporting Language (XBRL) is a significant new information technology for the electronic communication of business and financial data. XBRL has been implemented by Central Bank of Indonesia and Indonesia Stock Exchange but not yet adopted by Indonesian Tax Authority. As there was no data exchange among the regulators, it may result in inconsistent financial information among these authorities. However, before promoting this G2G sharing, the tax authority has to adopt the XBRL in the first place. This research proposed the XBRL taxonomy, which can be used in the adoption of XBRL for the e-Tax Corporate Filing system. As an applied research, the paper technically demonstrates how to develop XBRL taxonomy called The Corporate Tax XBRL Taxonomy (1771-CTXT). The taxonomy was created based on the iterative approach as the main part of the Design Science Research (DSR) process model. Although this research paper was done based on the case study of corporate income tax in Indonesia, the steps to developing taxonomy document could be applied as well to other countries’ tax regulators. In implementing XBRL based data exchange among regulators, the National XBRL taxonomy has to be developed first to provide XBRL elements, which can be re-used among them. The XBRL extensions of the national taxonomy should also be developed for particular reporting domains such as tax and statistics.

Applying XBRL to US State and Local Government Audited Financial Reports

Ten years after the Securities and Exchange Commission mandated the conversion of corporate financial statements to machine-readable formats, there is still no analogous mandate for state and local government Comprehensive Annual Financial Reports (CAFRs). We explore the challenges and benefits of migrating from PDF CAFRs to machine-readable filings using eXtensible Business Reporting Language (XBRL). After explaining the benefits of machine-readable audited municipal financial data, we consider the challenges of creating and implementing an XBRL taxonomy for this sector and the impact a filing mandate would have on state and local governments. To better assess the challenges, we update a CAFR taxonomy previously published by Neal M. Snow and Jacqueline L. Reck and apply it to a city in Florida. While corporate XBRL filers generally use third-party filing firms, they can also use open-source software, low-cost licensed software, or both to produce the filings. Providing a variety of low-cost alternatives to state and local governments helps mitigate the challenge of providing affordable filings.

Cloud-Computing Risk Disclosure and ICFR Material Weakness: The Moderating Role of Accounting Reporting Complexity

ABSTRACTRegulators have expressed concerns over management's ability to maintain effective ICFR when adopting cloud-computing services (PCAOB 2015), as well as the auditor's ability to cope with such changes (PCAOB 2015, 2017). Further, the complexity of the client's accounting concepts, proxied by their XBRL taxonomy, could adversely impact financial reporting quality. We investigate the association between a firm's disclosure of cloud-computing risks and its likelihood of disclosing a material weakness, moderated by its level of accounting reporting complexity. We find that, for firms that identify cloud-computing as a significant risk, the external auditor is less likely to issue a material weakness when the firm uses a greater number of customized XBRL tags. We also find that the external auditor is more likely to issue a material weakness for firms that do not identify cloud-computing as a significant risk to their operations when they use a greater number of customized XBRL tags.Data Availability: Data are publicly available from sources identified in the paper.

Improving corporate disclosure through XBRL

PurposeThe purpose of this paper is to examine the potential for eXtensible Business Reporting Language (XBRL) to go beyond static reporting. A taxonomy structure of information is developed for providing a knowledge base and insights for an XBRL taxonomy for integrated reporting (IR).Design/methodology/approachDesign Science (DS) research, as a pragmatic exploratory research approach, is embraced to create a new “artefact” and thematic content analysis is used to analyse IR in practice.FindingsUsing XBRL for IR allows a shift from static and periodic reporting to more relevant and dynamic corporate disclosure for stakeholders, who can navigate and retrieve customised disclosure information according to their interest by exploiting the multidimensionality of IR and overcome some of its criticisms. The bi-dimensional taxonomy structure the authors’ present allows users to navigate disclosure from two different perspectives (content elements (CE) and capitals), display specific themes of interest, and drill down to more detailed information. Because of its evidence-based nature and levels of disaggregation, it provides flexibility to preparers and users of information. Additionally, the findings demonstrate the need to codify sector-specific information for the CE, so that to direct the efforts toward the development of sector-specific taxonomy extensions in developing an XBRL taxonomy for IR.Research limitations/implicationsThe limitations of DS research are, first, the artefact design and, second, its effects in practice. The first limitation stems from the social actors’ perspective taken into account to develop the taxonomy structure, which derives from the analysis of the reporting practices rather than a pluralistic approach and dialogic engagement. The second limitation relates to the XBRL taxonomy development process because, since the study is limited to the “design” phase being codification and structuring the knowledge base for an XBRL taxonomy, there is a need to develop a taxonomy in XBRL and then apply it in practice to empirically demonstrate the potential and benefits of XBRL in the IR context.Practical implicationsThe taxonomy structure is targeted at entities interested in designing an XBRL taxonomy for IR. This is a call for academics and practitioners to explore the potential of technology to improve corporate disclosure and open up new projections for resurging themes on intellectual capital (IC) reporting with prospects for IC “fourth-stage” research focused on IC disclosure.Originality/valueThis is an interdisciplinary research employing the DS approach, which is rooted in information systems research. It is the first academic study providing pragmatic results for using XBRL in the context of IC and IR.

Game analysis of XBRL taxonomy extension

eXtensible Business Reporting Language (XBRL) has been recognized as the most effective forms of network financial reporting since its distribution. Taxonomy is the basis and key of XBRL, and the extension of taxonomy is crucial to the worldwide application. The aim of this paper is to show the extension effectiveness of relative stakeholders and analyze a balance of interests. To gain this, this paper divides the stakeholders of the XBRL taxonomy extension into information issuers, users, and government regulators. The paper analyzes the taxonomy extension behavior and the balance of interests in the competitive environment as well as constructs the perfect information dynamic game model of the taxonomy extension. Hence, these help the information issuer to determine the effectiveness of the XBRL taxonomy extension and select the best extension opportunity. The game results show that the optimal extension time between competing firms can reach Nash equilibrium in six cases. However, when the game cannot reach the Nash equilibrium, the regulations such as the mandatory disclosure requirements, personnel and resources will be executed by government in order to promote the decision making on taxonomy extension. At the same time, information issuer can also adopt vigorous measures to ensure the implementation of XBRL taxonomy extension is effective and advantageous in a competitive environment.

A Process Model for XBRL Taxonomy Development

XBRL taxonomy is the latest technology for the high quality exchange of business and other reports on the Internet. How to quickly develop high quality XBRL taxonomy is a hot research topic of business information domain. In this study, the problems of XBRL taxonomy development are considered and a process model for XBRL taxonomy development is proposed. The model uses the idea of knowledge engineering, domain ontology building and software engineering for reference to some extent. The phases of the model and their main tasks are proposed to provide an ordered framework for XBRL taxonomy development. An application case is presented to show the effectiveness of this model. The key benefits of this model are to improve the quality of XBRL taxonomy and to reduce the workload of development process.

A hybrid method for taxonomy creation

Automatic extraction of information from the footnotes of financial statements can be particularly challenging due to a wide variation in filing structure and terminologies. Standardized text and use of data tagging can facilitate this process. This paper: (i) proposes and demonstrates a new hybrid method of taxonomy creation, using historical data; (ii) compares the taxonomy structure using the new method, with that of the existing XBRL US GAAP taxonomy; (iii) shows evidence of structural differences between the official XBRL US GAAP taxonomy and the new hybrid taxonomy and (iv) demonstrates how the tool so developed could be used for more exploratory research. Comparison of this new structure with that of the existing XBRL taxonomy structure reveals that its creation from historical data provides a greater level of aggregation compared to the XBRL US GAAP taxonomy for Pension footnotes.

Research on Implementation of the Financial Statements Based on XBRL Linkbase

With companies becoming bigger and stronger and being global, as well as company’s businesses being cross-regional and cross-industry, the preparation of the financial statements becomes more and more complex. The emergence of XBRL will change the above situation and impact the preparation of the financial statements. Every company can use the elements of XBRL’s common classification criteria to sort out (financial information), but needs to extend the element which does not exist in the common classification criteria, then building the Linkbase of extension elements is an important issue that enterprises facing. First, this paper introduces the concepts and theories of XBRL. Second, this paper gives the preparation process of XBRL-based financial statements. Third, this paper detailedly analyzes the actualization of XBRL taxonomy extension element Linkbase module in the implementation process and briefly describes the establishment and usage of XBRL classification criterions, the actualization of modules, such as the acquisition of company financial data module, the generation of basic financial statements module and XBRL instance documents’ reporting and analysis and so on. Finally, the paper proposes a XBRL-based Linkbase, and then analyzes the financial statements that based on XBRL Linkbase. Through the research and implementation of XBRL Linkbase, companies can improve the efficiency of the preparation of the financial statements, easily extend elements according to their company’s needs in real time, and provide financial statement analysis and decision-making information combined with XBRL data.