UNIVERSITY OF MYSORE, MANASAGANGOTHRI

SUBMITTED BY: SUSHMITA R GOPINATH 1 ST YEAR Mcom “B ” TOPIC: ROLE OF XBRL IN BUSINESS REPORTING SUBMITTED TO: SIR PRATHAP T.M FACULTY DOS IN COMMERCE MANASAGANGOTHRI, MYSURU

 INTRODUCTION  MEANING OF XBRL  XBRL INDIA JURISDICTION  XBRL INDIA JURISDICTION MEMBER  HOW DOES XBRL WORK?  BENEFITS OF XBRL  DEMERITS OF XBRL  EXAMPLE OF XBRL  CONCLUSION  REFERENCES

INTRODUCTION XBRL stand for eXtensible Business Reporting Language. It is one of a family of XML languages which is becoming a standard means of communicating information between business and other stakeholders on the internet. XBRL is a language for electronic communication of business & financial data which is revolutionizing the business reporting around the world. It provides major benefits like cost savings, greater efficiency, improved accuracy and reliability to all those who are involved in supply & usage of financial data. XBRL is being developed by XBRL international a non profit consortium of approximately 650 companies & agencies worldwide working together to build XBRL & promote and support its adoption.

Meaning of XBRL

XBRL INDIA JURISDICTION

An XBRL document can be viewed as a system of barcodes. These barcodes not only contain the information but also attributes that describe the information. The XBRL process can be understood better with the help of the diagram to the left: The source document is the annual report of the company that is to be converted to XBRL. The taxonomy of XBRL is in literal terms a dictionary of elements that are reported. The taxonomy provides the tags (barcodes) for all the elements appearing in the annual report. The creation of XBRL documents involves the process of tagging the document. Tagging is the process of assigning barcodes to all the elements appearing in the annual report. Once all the elements appearing in the annual report have been tagged the XBRL Instance document is generated and the process is complete. The XBRL instance document contains all the facts that are reported in the annual report along with the descriptive attributes about the data that is reported. The instance document is platform independent and can be reused to represent and transfer data as per the requirements of the user. How does XBRL work?

 It offers benefits to a range of users: In fact, anyone that wishes to analyze or compare data can benefit from XBRL, as it makes information more readily accessible to anyone – from stakeholders in a business to investment analysts and government agencies.  It reduces the need for manual data entry. Many businesses still rely on a large number of manual processes to prepare and review their financial statements, which is not only time-consuming but also carries the risk of a data entry error. XBRL reduces a business’ reliance on such manual input and review processes, meaning more time can be spent on data analysis.  XBRL isn’t just for financial data. It’s a common misconception, but XBRL isn’t just useful for financial reporting. In fact, XBRL can also be used to communicate non-financial data, such as a business’ inventory status. This means that, if a business leverages the power of XBRL, it could potentially improve its own internal management reporting processes.  Cost savings: Using XBRL, can be cost effective because it can be done by one or two employees,it doesn’t require a mass population to accomplish the task.  From the Accountant’s point of view, it will enable them to prepare error- free accounts. Since accounting data are mapped into some recognized taxonomy, all errors are to be sorted out at this stage.

 COST: The largest disadvantage remains cost. Although some experts say, over time, XBRL could lead to up to a 25% decrease in reporting costs, some companies may find it difficult to justify the initial costs unless a company has an automated tagging process, tagging XBRL data consumes hours of labor, increasing the cost associated with using the language.  XBRL Complexity can lead to transmission errors: XBRL is complex and not easily read or written by accountants, regulators or business users, necessitating the dependence on experienced IT developers to assist with the electronic filing. XBRL’s complexity combined with letting inexperienced users create data for transmission increasing the likelihood of errors.  XBRL may increase information abuse. In an information technology age where dishonest people are electronically enabled, abuse is bound to occur. As more information becomes electronically companies will need to implement appropriate safeguards to protect their information, including XBRL tagged information.

Example of XBRL Language

XBRL is set to become the standard way of recording, storing and transmitting business financial information. It is capable of use throughout the world, whatever the language of the country concerned, for a wide variety of business purposes. It will deliver major cost savings and gains in efficiency, improving processes in companies, governments and other organizations.

REFERENCES    of-pros-and-cons-of-xbrl.html of-pros-and-cons-of-xbrl.html  compliance-the-benefits-of-xbrl.html compliance-the-benefits-of-xbrl.html