XBRL myths exploded
XBRL is a reporting reality for more companies with every passing year. Many companies are already reporting in the format, but soon it will be the norm. And not just in the United States, but around the world. China, Japan, India, the United Kingdom and Germany have all embraced the format.
That is why I was interested to see a report in Business Finance that listed 10 XBRL myths that we should all be aware of.
Some of the myths included: XBRL is just a standard chart of accounts, XBRL is too complicated to use or to understand, XBRL doesn't apply to my company, XBRL requires me to report more information, XBRL is just a regulatory tool, XBRL is a proprietary piece of software.
The myths that are most interesting to us are the ones that suggest the value of XBRL is limited to financial reporting and nothing more. Nothing could be farther from the truth. While the bandwagon by necessity gets rolling in the financial module, there are a range of benefits that companies have already discerned.
"Tax, internal audit, executive management, marketing and sales, operations, investor relations, and legal teams also gain value from the efficiencies and silo-busting power of XBRL. They can share information cross-functionally in a quicker, cheaper, more integrated manner," notes Business Finance. "The power of the concept of a single data set (with appropriate access levels and permissioning) for the entire organization, enabled by XBRL, is one of reasons why integrated reporting is such a hot topic today."
We cannot predict exactly where the XBRL movement will take us. But really the sky is the limit. We may see the standard applied to sustainability metrics, healthcare metrics and the like. The real revolution will be in the way end users utilize this data.
- here's the article