Digitizing Financial Reports – Issues and Insights: A Viewpoint

Hoffman, Charles S.; Rodríguez, María Mora

doi:10.4192/1577-817/1577-8517-v13_3

Cited by 14 publications

(11 citation statements)

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“…Arguments for the adoption of digital reporting suggest that it will improve the accessibility, transparency and accuracy of reported information and its subsequent analysis through automated processing (Cover, 2004;Gunn, 2007;Hodge et al, 2004;Hoffman and Rodriguez, 2013). Proponents of digital reporting argue that the equivalence will be enhanced because the tags provide definitions and links to supporting references (e.g.…”

Section: Discussionmentioning

confidence: 99%

“…Electronic reporting includes any transmission of reports online. Digital reporting enables the translation of data at the individual item level into a format that can be recognised by computers to enable searching and automated processing (Hoffman and Rodriguez, 2013). The view that digitisation of corporate reporting data 'create [s] an unambiguous way to identify and compare business performance of one company to another' (Liu et al, 2017, p. 43) has been largely uncontested.…”

Section: Introductionmentioning

confidence: 99%

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Sites of translation in digital reporting

Locke

Rowbottom

Troshani

2018

AAAJ

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Purpose The purpose of this paper is to analyse the process by which “analogue” corporate reports produced under a “paper paradigm” are translated into a machine language as required by digital reporting. The paper uses Austin and Searle’s linguistic speech act theory to examine how digitally translating reporting information into atomised data affects the infrastructure and practice of accounting. Design/methodology/approach Extensive interview and observation evidence focussed on the IFRS Foundation’s digital reporting project is analysed. An interpretive approach is informed by the concepts of L compatibility, illocution and perlocutionary acts which are drawn from speech act theory. Findings Two key sites of translation are identified. The first site concerns the translation of accounting standards, principles and practices into taxonomies for digital tagging. Controversies arise over the definition of accounting concepts in a site populated by accounting and IT-orientated experts. The second site of translation is in the routine production and dissemination of digital reports which impacts the L compatibility between preparers and users. Originality/value The paper highlights a previously unexplored field of translation in accounting and contributes a unique perspective that demonstrates that machine translation is no longer marginalised but is the “primary” text with effects on the infrastructure and practice of accounting. It extends speech act theory by applying it to the digital domain and in the context of translation between languages.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Sites of translation in digital reporting

Locke

Rowbottom

Troshani

2018

AAAJ

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“…The capability that XBRL technology affords to users to drill down into accounting numbers efficiently improves accessibility to information concerning specific firm economics that would otherwise be difficult or expensive to access (i.e., with traditional corporate reporting) (Doolin and Troshani, 2004;Garbellotto, 2006Garbellotto, , 2007Hoffman and Rodriguez, 2013;Ramin and Lew, 2015;Ramin and Reiman, 2013). However, this capability is beneficial to users of financial information including investors as it allows them to have greater, intimate understanding of how specific fundamental components contribute to reported values of accounting measures [13].…”

Section: Value Relevance and Xbrlmentioning

confidence: 99%

Digital corporate reporting and value relevance: evidence from the US and Japan

Shan

Troshani

2020

IJMF

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PurposeThe study improves current understanding concerning the implications of digital corporate reporting technology on the informativeness of accounting information.Design/methodology/approachIt looks at how XBRL, an exemplar digital corporate financial reporting technology, affects value relevance of accounting information in the US and Japan, two key jurisdictions where XBRL has been mandated. We operationalise stock price and return value relevance models to assess and compare predicted associations between selected accounting measures and market value of equity in these countries.FindingsWe predict that the selected accounting measures are more value relevant after XBRL was mandated than before. We find evidence to support our prediction for the US sample. We also predict and find that the contribution of XBRL to the value relevance of the selected accounting measures is greater in the US than in Japan. Overall, our evidence provides support that digital corporate reporting technology enhances relevance and reliability of accounting measures.Originality/valueThe study appears to be the first to have examined the impact of XBRL on value relevance whilst comparing between two major jurisdictions. The study extends emerging but limited literature concerning the benefits of digital corporate financial reporting for enhancing the communication between firms and users of financial information. The findings are useful to both users of financial information and standard setters.

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“…Using technology can facilitate such a shift (Dumay, 2016). Information and communication technologies have risen to the fore in the so-called digital reporting era, changing the ways in which companies relate to their stakeholders (Ghani et al , 2009; Hoffman and Mora Rodríguez, 2013). Beattie and Pratt (2003, p. 155) conclude that the potential benefits of web-based business reporting derive from the “different kinds of additional information that could be provided electronically”, “the usefulness of different navigation and search aids”, and “the portability of information under different formats.” There are benefits in using web technology for reporting for both preparers and users who can take advantage of the web environment: the former experience improved corporate image and competitive advantage from their use; the latter can access on demand a large volume of information in their particular area of interest (Bonsón and Escobar, 2006).…”

Section: Introductionmentioning

confidence: 99%

Improving corporate disclosure through XBRL

Torre

Valentinetti

Dumay

et al. 2018

JIC

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Purpose The 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/approach Design 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. Findings Using 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/implications The 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 implications The 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/value This 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.

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Digitizing Financial Reports – Issues and Insights: A Viewpoint

Cited by 14 publications

References 1 publication

Sites of translation in digital reporting

Sites of translation in digital reporting

Digital corporate reporting and value relevance: evidence from the US and Japan

Improving corporate disclosure through XBRL

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