XBRL Research Articles

An Empirical Analysis of Impact of XBRL on Quality of Financial Reporting in India

The efficient and effective communication of business and financial information to end-users helps to get clear insights on the business outlook and assists them in making timely decisions. Financial reporting acts as a vehicle to disseminate the financial information of the business to various interested parties by communicating operating and financial information through financial statements, notes to financial statements and other footnotes in the annual report. Nowadays stakeholders of the business are more expecting both financial and non-financial information to be communicated in a single annual report. Therefore, the corporate houses are required to communicate enhanced information in their annual reports to facilitate the stakeholders in their decision-making process. Communication of enhanced information in the annual report is only possible with the help of the EBR Model (Enhanced Business Reporting Model) which is only possible by the application of XBRL (Extensible Business Reporting Language) to the business reporting purpose. The present paper is intended to examine the impact of XBRL on the quality of financial reporting. For this purpose, the study analysed the financial reporting pattern of 23 select companies in India through the analysis of their annual reports from 2005 to 2020. To derive valid conclusions Tukey test, dummy variable regression analysis techniques were employed and concluded that XBRL has made a significant impact on the quality of financial reporting of select companies.

Current Ratio, Earnings Per Share, Extensible Business Reporting Language, dan Price To Book Value

One of the indicators used by investors to carry out investment analysis is Price to Book Value (PBV) which is influenced by financial performance and ease of access to company information. This research aims to determine the effect of Current Ratio (CR), Earnings per Share (EPS) and Extensible Business Reporting Language (XBRL) on Price to Book Value (PBV). The population of this study are companies that have been listed on the KOMPAS100 index during the 2012-2017 period. The sample selection was carried out by purposive sampling method. The sample chosen was 10 companies. The data is taken from the official website of the Indonesia Stock Exchange. Data is processed using multiple linear regression models. The results of this study state that CR has no significant effect on PBV, EPS has a positive and significant effect on PBV, and XBRL has a negative and significant effect on PBV.
 Keywords: Current Ratio; Earnings per Share; Extensible Business Reporting Language; Price to Book Value

DIGITAL BUSINESS REPORTING IS A KEY TO ENHANCE FINANCIAL REPORTING QUALITY – AN XBRL PERSPECTIVE

Communication of high-quality business and financial information to decision-makers helps to get clear insights on the business outlook and assists them in making timely decisions. Financial reporting acts as a media to disseminate the information of the business to various interested parties by providing operating and financial insights through financial statements, notes to accounts and other footnotes and narratives in the Annual Business Report (ABR). Today stakeholders of the business are very keen in getting both financial and non-financial information in a single report i.e., ABR. Therefore, the companies are required to communicate enhanced information in their ABR to facilitate and assist the stakeholders in their decision-making process. The method of dissemination of both business and financial information in a single ABR is EBR Model (Enhanced Business Reporting Model). The EBR model of communication is only possible by the application of XBRL (Extensible Business Reporting Language). The purpose of present paper is to analyze the impact of XBRL on the quality of financial reporting. For this purpose, the study analyzed the financial reporting pattern of 23 select companies in India through the analysis of their annual reports from 2005 to 2020. To derive valid conclusions Tukey test, dummy variable regression analysis techniques were employed and concluded that XBRL has made a significant impact on the quality of financial reporting of select companies.

Єдиний електронний формат нефінансового звітування

The article highlights the EU experience on gradual introduction of a non-financial reporting system in a single electronic format. The article analyzes the processes of transformation of disclosure requirements in the field of environmental and social impact of economic entities, as well as corporate governance (Environmental Social Governance, ESG), enshrined in the Non-Financial Reporting Directive 2014/95/EU (NFRD) and presented in the draft of the new Corporate Sustainability Reporting Directive (CSRD). The author describes advantages and disadvantages, strengths and weaknesses of the process of forming the modern architecture of ESG reporting in the EU, which is based on the requirement to transmit information in electronic format XHTML (eXtensibleBusiness Reporting Language) in accordance with the regulations of the EuropeanSingle Electronic Format (ESEF). The main advantages of CSRD are defined as follows :1) mandatory reporting - as common reporting structure for non-financial data is established at the legislative level so the data manipulation and use of SDG-washing and Cherry-picking practices will be reduced; 2) sustainability-related data disclosure on regular basis – strict requirement for annual reporting; 3) accuracy and completeness of sustainability-related information disclosure - bridging gaps in non-financial reporting; 4) saving company time and resources needed to be spend on reporting - reduction of the number of indicators, deduplication and unification of reporting forms. It is substantiated that the transition to a single electronic format of non-financial reporting over time willexpand Ukraine's investment potential during the postwar recovery.

Digitalization of Financial Reporting Through XBRL and the Cost of Equity

This study aims to explore the relation between the pre and post adoption of the Extensible Business Reporting Language (XBRL) adoption and the cost of equity capital in Indonesian-listed firms. The study examines 59 listed companies for four years, including two years before (2014-2015) and two years after (2016-2017) the adoption of XBRL in Indonesia. By comparing the pre and post adoption periods, the multiple regression analysis results will provide valuable information for the related stakeholders of the Indonesia Stock Exchange (IDX). Furthermore, this paper examines the impact of the control variables, such as the firm’s size, leverage, vari-ability of return, and price-to-book ratio to the relationship between XBRL and cost of equity (COE). The results show that XBRL adoption is significant in reducing the cost of equity and large-sized firms are more likely to enjoy greater reduction. This paper contributes to the research area by providing evidence on the relationship between XBRL adoption and COE in Indonesia that have mixed results in various countries and environments.

Suitability of Accounting Education to Current Market

Purpose: This study evaluates the perception of academicians teaching accounting in the universities of Karnataka state, India in the context of the suitability of accounting education for current market demand. It also assesses the level of suitability of accounting education to the current market needs prevailing in the universities of Karnataka state. Methodology: This empirical-conceptual study was conducted based on both primary and secondary data. To analyse the data, accounting education quality index was developed. One-sample t-statistics was used for statistical analysis. Findings: Our results showed that average suitability of accounting education prevailing in the universities of Karnataka state to current market need was 43 per cent. Further universities and academicians are needed to upgrade the accounting education system so as to support the graduates to employable in the market. Implications: The outcome of the results of this research will become an input to universities to take necessary steps for inclusion of Artificial Intelligence applications, Extensible Business Reporting Language, and Global Reporting Initiatives aspects in their curriculum. Inclusion of these aspects in the accounting curriculum helps the graduates employable in the field of accounting and auditing of business and financial information. Originality: This research will add value to the existing literature in the field of accounting education. Meanwhile, it stresses the need for advancing accounting education in the Indian context.

Benchmarking and Accounting - a field study

Many studies in the field of empirical accounting research reveal that although companies should follow the approach of telling their specific investment story (Stanton and Stanton, 2002) to the outside investors corporate disclosures tend to assimilate and converge to their peers group disclosures and form clusters or bundles (Beerbaum, 2015, Wagenhofer, 2008, Cadbury, 1999, Markarian et al., 2007) following the theory of path dependency (Bebchuk and Roe, 1999). To discern the wood from the trees and grasp the nettle of complexity in the increasing overloaded annual report, corporate annual reports have inevitable been playing the adding value role due to technology: application of sophisticated clustering software using content analysis, processing of structured data by Extensible Business Reporting Language (XBRL) and using artificial intelligence to help to navigate the reader and identify decision useful information. Little research is however done on the understanding if company themselves pro-actively support convergence by applying management accounting technique of Benchmarking and Best-practice analysis. The paper applies a mixed-method approach to improve understanding. In an exploratory setting first interviews demonstrate in fact that Benchmarking and Best-practice analysis are widely-used tool among Financial Management and are not restricted to Management Accounting. This development also underpins the convergence between Management and Financial Accounting. In a followed quantitative study the hypothesis can be confirmed that through the application of Benchmarking disclosures among peers tend to convergence and standardize over time, whereas the degree of convergence increase the longer the Accounting Standard is applicable. The study specifically focus on Related Party disclosures and recommend to extend the scope for future research.

Semantic Primitives Extraction for XBRL Domain Ontology

At present, XBRL (Extensible Business Reporting Language) has been used in more and more countries and organizations. Although XBRL has achieved a series of remarkable achievements, the current development of XBRL has also encountered bottlenecks. On the one hand, the XBRL field has not been unified. On the other hand, the semantics of concepts in the domain ontology of XBRL is weak, resulting in the slow application and promotion of XBRL. This paper regulates the extraction of semantic primitives in the ontology of XBRL domain from the perspective of semantics and solves the problem of “how to extract semantic primitives”. The solution to this problem can promote computers to better understand XBRL financial reports and reduce the technical difficulty of XBRL. This paper comprehensively uses the theories of semantic primitives, graph theory, and domain ontology. First, it analyzes the research status and shortcomings of semantic primitive extraction methods. Second, it constructs a graph of accounting term relationship network from the perspective of graph theory. The extraction of semantic primitives. Finally, the validity of semantic primitive extraction is analyzed and verified.

Exploring the Egyptian accountants' awareness and understanding of XBRL

Exploring the Egyptian accountants' awareness and understanding of XBRL

O ESTADO DA ARTE DA PRODUÇÃO CIENTÍFICA SOBRE A LINGUAGEM XBRL (EXTENSIBLE BUSINESS REPORTING LANGUAGE)

Esta pesquisa tem por objetivo analisar a produção científica internacional sobre a linguagem XBRL (Extensible Business Reporting Language). Trata-se de um tema recente, que foi desenvolvido como uma linguagem que ajuda a facilitar a harmonização internacional das práticas contábeis. O estudo é atual e oportuno para o Brasil, tendo em vista a manifestação de interesse do Conselho Federal de Contabilidade em adotar o padrão nas empresas brasileiras. Para atingir este objetivo, aplicou-se como método uma coleta, com análise qualitativa e quantitativa do total de artigos internacionais publicados sobre o tema até os dias de hoje. Foram analisados 288 artigos internacionais, obtidos da base de dados Web of Science. Observou-se o crescente interesse pelo assunto nos últimos anos. Os estudos internacionais analisados demonstram os benefícios da adoção da XBRL em diversos países, apresentam as melhorias ocorridas na padronização dos dados, na confiabilidade das informações e redução da assimetria informacional.

XBRL – digital standard for financial reporting submission

XBRL – digital standard for financial reporting submission

Readability of MD&A Extracted from iXBRL: Computational Linguistic Approach

This paper clarifies determinants of the readability of Management and Discussion & Analysis (MD&A) section from annual reports of Japanese companies extracted from Inline Extensible Business Reporting Language (iXBRL). Previous studies have focused on English-language information, with no studies discussing the characteristics of Japanese MD&A using large-sample data. Thus, we extracted the character information Japanese companies from iXBRL and analysed the readability using text mining. We found that 1) companies with large market value at the end of the term and companies with a high age have low readability, 2) companies with a large market value at the end of the term and companies with many foreign segments have many characters, and 3) companies with high age have fewer characters. Further, MD&A in Japan had greater readability than comparable United States documents. Our results suggest that firms with asymmetric information use simpler words for shareholders and, further, are conscious of shareholders who have poor Japanese. The academic contribution of this paper is to show the usefulness of iXBRL as well as the readability of Japanese MD&A using large-sample data through a computational linguistic approach. In addition, this research compares the results of Li (2008), which targeted the United States, with the results for Japan.

XBRL: Towards a Unified Taxonomy

This study identifies upcoming trends for XBRL (Extensible Business Reporting Language). While most of the articles focus on technological aspects such as ontology and software engineering this article relates to accounting-related aspects of the taxonomy. The taxonomy can be regarded as a main cornerstone of each XBRL financial reporting submission. As taxonomy do not develop standards, laws and regulations newly, they only derive standardized reporting elements. The current landscape of taxonomy is still characterized by multiple heterogeneous taxonomies. Based on the harmonization requirements and requests from regulators for better comparison of financial reports among peers, it can be concluded that taxonomies will adapt and merge to each other. In an end-game scenario it is probable that only one taxonomy remains and prevails.

XBRL: Towards an Unified Taxonomy

This study identifies upcoming trends for XBRL (Extensible Business Reporting Language). While most of the articles focus on technological aspects such as ontology and software engineering this article relates to accounting-related aspects of the taxonomy. The taxonomy can be regarded as a main cornerstone of each XBRL financial reporting submission. As taxonomy do not develop standards, laws and regulations newly, they only derive standardized reporting elements the current landscape of taxonomy is still characterised by multiple heterogeneous taxonomies. Based on the harmonization requirements and requests from regulators for better comparison of financial reports among peers, it can be concluded that taxonomies will adapt and merge to each other. In an endgame scenario it is probable that only one taxonomy remains and prevails.

Intelligent Architecture for Comparative Analysis of Public Companies Using Semantics and XBRL Data

"The new source of power is not money in the hands of a few, but information in the hands of many." The aforementioned quote from John Naisbitt seems to be even more relevant in the world of finance at this very moment. Many financial decisions come from watching the information stream, selecting relevant data, analyzing it and acting accordingly. With the increasing global competition, the need for swift data analysis, high accuracy and quality becomes a must. XBRL (Extensible Business Reporting Language)XBRL: http://www.xbrl.org/ standard was proposed to improve efficiency of data exchange in the financial domain. However; it is still struggling with interoperability problems, not to mention comparability of data or multisource data integration. This paper presents the FLORA intelligent platform: an approach for dealing with current financial information shortcomings and achieving more effective way of processing financial data based on the Linked Data principles. The article also explains the process of data extraction and semantic modeling which are the cornerstones of efficient financial data analysis. As a result, the FLORA architecture facilitates effective, data-driven, financial analyses and Web-scale integration between financial applications and platforms.

On Formalization and Reasoning Algorithm in Distributed XBRL System

On Formalization and Reasoning Algorithm in Distributed XBRL System

E-Government Adoption in the U.K.

Electronic government is one of the strategic innovations which have become a powerful agent of change for developing better government information and services and supporting the modernization of government’s operations. This paper investigates a remarkable e-government initiative represented by the adoption process of the Extensible Business Reporting Language (XBRL) at Companies House (CH) in the United Kingdom. Based on the application of Rogers’ framework, the research identifies CH’s motivation, vision and process to use XBRL to achieve efficiency and produce better quality data to enhance and streamline the electronic filing process. The novelty of this research is based on the usage of a well-established innovation adoption framework to examine XBRL adoption as a process –rather than a product- innovation that remains to be an under-researched area. This research provides valuable implications and conclusions that can help decision makers and IT experts in government agencies to devise meaningful strategic plans to adopt future e-government initiatives and develop existing ones.

E-government challenges at the UK's customs and tax department

The last two decades have seen an evolution of information and communication technology capabilities in the public sector which facilitates the adoption of several technology innovations. Electronic government is one of the strategic innovations that many government agencies have considered adopting to deliver efficient government services and support the development of government operations. Initial efforts to examine the process of adopting electronic government initiatives suggest that many government agencies face several challenges that could hamper the progress of the adoption process. An e–government initiative, represented by Extensible Business Reporting Language has been adopted by the UK's HM Revenue and Customs (HMRC). The paper examines the influential e–government challenges that affected the adoption process at HMRC. Research findings provide practical implications that could aid government decision makers to plan for the future of electronic government by identifying the key potential challenges associated with the adoption of e–government initiatives.

Introduce XBRL To Business Students

This paper informs business instructors and educators about XBRL (Extensible Business Reporting Language) so that they can introduce it to their students and expand their students’ understanding of how it relates to the accounting profession. Even though the financial community has entered a new age with this standardized reporting language, many business educators and even accountants old and new to the profession are not informed about XBRL nor have an idea of its potential benefits. With this paper, educators and students can learn the definition of XBRL, its history, and its current uses. The information educates the reader about the evolution of XBRL over the past two decades as well as its benefits so readers can become aware of the value of this now-worldwide application. The paper includes the SEC and FDIC adoption of this computer language as an international standard that aims to improve the speed, accuracy, and transparency of business reporting.

“We were the first to support a major is innovation”. Research into the motivations of spanish pioneers in XBRL

We conduct a field study to analyse the reasons why pioneers supported the introduction of the Extensible Business Reporting Language (XBRL) from its earliest days in Spain. The Spanish pioneers were able to visualize the possibilities of the XBRL as an effective tool for facilitating the transmission of accounting and related information. At that point in time, innovators had available a limited amount of technical information on XBRL, because it was in the process of development. Hence, their engagement in the introduction of XBRL was based more on intuition than on in-depth knowledge of the technological advantages to be gained from its application. Further, their support for the innovation was active and not passive.