XBRL

Abstract

Ranked as one of top ten technologies for accounting and auditing professionals, eXtensible Business Reporting Language (XBRL) is a freely available, open, and global standard language for exchanging business financial information digitally. XBRL holds the greatest promise for building a global standard that is pledged to enhance the accuracy, reliability, efficiency, accessibility and availability of electronic communication of business financial data. This paper sets out to provide a review of literature to lend insights into our understanding of XBRL adoption, implementation, and value realization assessment. A comprehensive review uncovers four sub-themes of research in XBRL adoption: perceived benefits of XBRL adoption; organizational readiness; external pressure; and XBRL adoption. Research challenges for future research are highlighted.

The influence of XBRL technology on the quality of financial reporting: exploring mediating variables in the Indian context

“…In addition, now the companies that have already adopted XBRL for their financial reporting are enjoying the benefits of enhanced business reporting, through which they are incurring fewer costs and saving more time because, through XBRL, multistakeholder business reports can be generated, which in turn reduces compliance costs (Baldwin et al, 2006;Rao and Guo, 2022). Thus, the following hypotheses have been framed: 3.3 Extensible business reporting language, enhanced business reporting and financial reporting quality XBRL is an interactive and interoperable business reporting language that is built based on the taxonomy of business and accounting rules, principles and GAAPs and indirectly helps reporting organizations customize their business reports as per the requirements of various stakeholders (Liu, 2013). These customized reports may contain both financial and nonfinancial information and lead to the promotion of enhanced business reporting.…”

“…XBRL is an interactive and interoperable business reporting language that is built based on the taxonomy of business and accounting rules, principles and GAAPs and indirectly helps reporting organizations customize their business reports as per the requirements of various stakeholders (Liu, 2013). These customized reports may contain both financial and non-financial information and lead to the promotion of enhanced business reporting.…”

Does XBRL adoption eliminate misclassification of income statement items?

“…XBRL was first introduced by Hoffman in 1998, and it was called XFRML (eXtensible Financial Reporting Markup Language) (Hoffman et al , 1999). Years later, XBRL was adopted for financial reporting purposes worldwide (Gettler, 2014), and many countries mandated adopting XBRL such as China, India, Denmark, Belgium, South Korea, Luxembourg and Spain (Liu, 2013). Previous studies documented that adopting XBRL would result in transparent and comparable financial reports that are available for the public in a timely manner (Hsieh et al , 2019).…”

“…Practitioners and scholars face challenges continuously regarding the impact of these technologies on business the reporting. As stressed by Liu (2013), XBRL is one of the top technologies in the accounting field.…”