Thomas Richard Suozzi (born August 31, 1962) is an accomplished U.S. politician and certified public accountant with extensive experience in public service and financial management. He is known for his pragmatic approach to fiscal policy and governance.
Expertise: Estate planning, Financial accounting, Governmental accounting, Financial analysis, Financial planning
The introduction of eXtensible Business Reporting Language (XBRL) has revolutionized financial reporting worldwide. Developed by the AICPA in 1998, XBRL has become the global standard for digital business reporting. It enables efficient, accurate, and transparent exchange of financial information between businesses, regulators, and stakeholders. XBRL‘s semantic interoperability allows seamless communication across different systems and jurisdictions. So, what is XBRL? It’s the game-changing language of digital finance.
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XBRL, or eXtensible Business Reporting Language, is a digital standard for sharing business and financial data. It helps different systems and organizations understand each other’s information.
The Extensible Business Reporting Language, known as XBRL, plays a key role in today’s digital financial world. Its open standard is crucial for exchanging financial data digitally. By accurately encoding data, XBRL changes the way financial reports are made and shared worldwide. It’s more than just a language; it combines various concepts to enable structured communication.
XBRL is widely used and versatile, handling both financial and non-financial data. Every year, millions of XBRL documents are produced, showing its global acceptance and trust among businesses and regulators.
Over 600 organizations in the XBRL consortium and mandates from bodies like the European Securities and Markets Authority (ESMA) show XBRL’s significance in global reporting. Deloitte’s support and XBRL’s use in the IFRS Foundation’s annual Bound Volume highlights industry confidence in XBRL for comprehensive business reporting.
XBRL’s use of taxonomies simplifies financial data’s creation and interpretation. These frameworks improve report understanding, sharing, and reusing data between different parties. Ongoing improvements over the years have made XBRL taxonomies even better. They help various groups manage documents with support for multiple languages and business rules, ensuring data accuracy.
XBRL’s global use in over 50 countries demonstrates its universal applicability. It crosses geographic and linguistic barriers. Support from a non-profit consortium with over 170 international companies fosters its continual development and adaptation to diverse financial systems.
XBRL’s impact extends beyond financial reporting to the heart of digital financial management systems around the world. The European Banking Authority (EBA)’s push for standardized digital formats like XBRL highlights its importance in creating a unified financial reporting standard in Europe.
The digital age demands quick and precise reporting. This has led to XBRL, or eXtensible Business Reporting Language. XBRL goes beyond regular reporting standards. It ensures clarity and makes financial data comparable worldwide.
The American Institute of Certified Public Accountants started XBRL in 1998. XBRL has been around in its current form since 2003. It uses XML to standardize financial statements. This changes how we share business information. The addition of Inline XBRL (iXBRL) links XBRL data with HTML. This makes the data more useful.
XBRL International keeps these standards up and available worldwide. They make sure XBRL stays ahead in financial reporting. Over 214 implementations globally show its success. Big names like PricewaterhouseCoopers and SASB are working on specific taxonomies for different industries.
Accuracy is key in HTML financial reports, but XBRL info can get less attention. This oversight can bring risks like damage to reputation and financial risks. Yet, when used well, XBRL data shares many benefits. It makes data accessible, lowers costs, and improves insights. Companies like PwC provide extensive XBRL services.
The move from paper to digital reporting marks a big shift in technology. It is similar to changes brought by standard shipping containers. This change has made sharing business information easy and efficient. XBRL plays a big part in moving towards a digital marketplace.
XBRL has changed the way we handle business information. It makes reporting faster and more accurate for everyone. By using standards, XBRL ensures that financial information meets global and corporate needs.
XBRL makes reporting precise by automating data handling. This automation connects different company areas and systems quickly and accurately. It also allows companies to create reports in many languages, adapting to global needs.
Data tags are key in XBRL because they ensure each financial detail is clear and correct. Tools like Arelle use these tags to find and fix errors, making information trustworthy.
XBRL’s rules make financial reporting dependable. Its thorough validation process checks data against strict standards. This means users get reliable information without manual checks, showing XBRL’s strong validation.
XBRL helps meet various reporting needs, serving both internal and external purposes. Companies can make reports that fit their unique needs and speak clearly, thanks to its multi-lingual support.
| XBR Function | Advantages |
|---|---|
| Automation and Custom Reports | Facilitates the assembly of reports from varied systems with minimal effort, promoting cost-saving measures. |
| Validation Tools | Software like Arelle identifies errors swiftly in reports for accuracies down to one cent. |
| Data Handling | Improves the quality and speed of decision-making through quicker analysis and efficient data processing. |
| Global Reach | Enables the exchange of standardized business information across more than 50 countries, fulfilling tax and compliance needs. |
XBRL offers a comprehensive way to exchange business info. It enhances financial reporting’s efficiency and accuracy globally. By meeting international standards and offering flexible data use, XBRL supports the global business community.
The growth of XBRL implementations is huge, with over 214 cases worldwide. The move to global digital reporting is clear and affects many areas. It changes the way financial regulators, securities regulators, tax authorities, and government agencies work. They all find XBRL adoption key for better efficiency and trust in their processes.
Entities push for transparency and careful risk handling using precise risk reporting and accurate performance reports. The effort to standardize includes PwC working with SASB to turn 77 Standards into an XBRL format. This strengthens XBRL’s role as the go-to for business and finance communication.
XBRL is now used worldwide, beyond borders and sectors. It starts a new chapter in financial reporting that goes past old limits. It brings down data barriers, making information standardized and recognized by everyone. Various experts use XBRL to reduce risks related to their reputation, investors, and credit.
Many fields, from big companies to regulators, see the value of XBRL. They maintain high quality in their XBRL details with help from XBRL experts. PwC offers many XBRL services, like checking tag selection and calculations. These services help achieve flawless financial reporting.
Real examples show how XBRL changes financial reporting. It uses a global approach by AICPA and XML coding. This evolution helps share financial info better. The use of iXBRL combines XBRL with HTML, showing its flexibility. It shows how XBRL can meet various needs.
These changes offer major benefits, like less regulatory stress and deeper insights. XBRL completely changes how financial reports are shared. It leads to standard, open, and easy-to-access business data.
| XBRL Service | Benefits | Risks Mitigated |
|---|---|---|
| Tag Selection Assessment | Standardized information recognition | Reputational risk |
| Peer Tag Comparison | Enhanced insights | Investor stock purchase risk |
| Calculations Review | Decreased regulatory burden | Credit risks |
| External XBRL Specialization | Democratization of data | Accuracy-related risks |
For over twenty years, the taxonomy framework in XBRL technology has been key for financial reporting. It started being important since December 31, 2003. Taxonomies are the core of XBRL standards. They make sure financial concepts are clear and uniform worldwide. For example, the US GAAP Taxonomies meet the complex needs of US-based firms. This shows how taxonomy designs are specialized.
Taxonomies are like the ultimate guides in the XBRL system. They hold important definitions and organize financial data into XML files. They include elements such as items, domain members, and dimensions. These elements are crucial for explaining a company’s financial story. They help present financial statements accurately and clearly.
XBRL taxonomies are designed to handle many business situations through taxonomy extension. This flexibility lets companies adjust base taxonomies, like the US GAAP, to suit their unique financial situations. Through extensible taxonomy definitions, firms can detail their reporting. They can meet the needs of different industries and places.
Taxonomy extension is vital due to the changing world of financial reporting. It’s the foundation for defining taxonomies. It lets businesses tailor their reporting to their specific needs. While features like stable element attributes in US GAAP Taxonomies ensure consistency, extension allows for customization.
Overall, the relationship between XBRL taxonomy, its extensions, and elements shows the depth and change in financial reporting. Taxonomies are more than just financial concept stores. They are evolving tools that allow reporting with universal understanding and personal detail.
Xtensible Business Reporting Language (XBRL) makes financial reporting better. It starts with tagging process, connecting financial details to specific elements in a taxonomy. This crucial step makes sure each piece of data in XBRL reports is represented correctly and easy for stakeholders to understand.
The magic begins with the tagging process. Here, financial data links to elements in a taxonomy, capturing detailed, company-specific information in an XML filing. XBRL International supports this, with over 190 members since 1999, showing its success in making financial documents consistent worldwide.
After tagging, an instance document is made. It’s a unique XML file that mixes financial data with a chosen taxonomy, creating a final XBRL document. Microsoft showed how vital and useful making these documents can be with the US GAAP CI taxonomy draft.
Next, the rendering process turns the instance document into a human-readable format. This lets people access it without losing the data’s advanced, machine-readable nature. Microsoft’s work, changing file extensions for the EDGAR system, shows how XBRL-compatible software solves tech challenges, ensuring easy access to info.
eXtensible Business Reporting Language (XBRL) is changing how we exchange financial data. The evolution of XBRL v2.1 highlights its growing importance. It plays a key role now and will shape future financial reporting. Knowing these specs helps us reliably share and analyze financial info worldwide.
XBRL works because of its solid technical specs. At its heart is XML coding, which both humans and machines can understand. Additional XBRL modules increase its usefulness, meeting the complex needs of users. Following these specs ensures a strong, flexible, and clear financial data exchange network.
Inline XBRL (iXBRL) blends XBRL’s detailed data with HTML’s ease of use. This mix makes financial reports both rich in data and easy to read. It’s a key advancement in financial documentation.
The future of financial reporting is shaping up now, driven by XBRL advances. New laws and SEC rules promote using XBRL for digital reporting. This tech push is leading us toward iXBRL use and wider module acceptance globally.
Efforts to update and globalize financial reporting grow stronger with each new law. Places like Florida and Will County adopting iXBRL show governments are on board. This trend towards newer standards is picking up pace.
| Legislation/Initiative | Year Enacted | Relevance to XBRL |
|---|---|---|
| Foundations for Evidence-Based Policymaking Act | 2019 | Emphasizes machine-readable formats for data publishing |
| Florida Open Financial Statement System | 2018 | Establishes the use of XBRL taxonomies for financial filings |
| Will County iXBRL CAFR Publication | N/A | Demonstrates local government using iXBRL for reporting |
| SEC Final Rule Release 33-90021 | N/A | XBRL-encoded data files required for certain SEC filings |
Looking forward, groups like XBRL International are key to this progress. They guide and support the move to better reporting. By understanding these specs, we see a future with clearer, more impactful financial reporting. This transparency will benefit everyone’s economic well-being.
The American Institute of Certified Public Accountants (AICPA) introduced XBRL in 1998. This moment was groundbreaking for financial reporting. XBRL v2.1 came out in 2003, enhancing the system’s stability and use. Since then, XBRL has reshaped how financial information is managed and reported across different sectors.
One big win of XBRL is how it handles financial data worldwide. For example, financial analyses done in the US can easily be converted to fit international standards. This shows XBRL’s strength in making data universally understandable.
XBRL lets organizations tailor reporting to their needs through extension taxonomies. This adaptability is key for developing business insights. However, XBRL must maintain its flexibility while ensuring data can be compared. This balance is difficult but vital for its success.
The INFO Working Group, guided by the IAASB, watches XBRL’s progress closely. They’re making sure XBRL keeps up with changes in corporate governance and reporting. This ensures XBRL stays relevant and helpful as business reporting evolves.
Regulators around the world see XBRL’s increasing importance. They believe in its potential for shaping future business procedures. XBRL is setting new standards for transparency, efficiency, and customization in reporting.
The goal is a future where these qualities are the norm, not the exception. XBRL is leading the charge into a more connected and digital business age. It promises global connectivity and a revolution in financial reporting technology.
XBRL makes financial data more accurate, fast, and easy to access. It tags financial elements to enable thorough analysis. It simplifies filings and makes data clearer for investors.
XBRL International is a not-for-profit group that promotes the XBRL standard worldwide. They work on its development and encourage its use, ensuring the global success of XBRL.
XBRL makes data machine-friendly, unlike paper reports. Its format helps software quickly and reliably handle information. This boosts data sharing and analysis.
Taxonomies in XBRL are like dictionaries that explain financial concepts and their links. They standardize reporting, making it consistent and easy to understand across various fields.
Organizations can modify XBRL taxonomies to suit their unique financial reporting needs. This includes adding details for special financial products or industry-specific aspects while keeping the standard approach.
An XBRL instance document is a XML file with tagged financial data from a company’s reports. It matches the taxonomy’s concepts, creating a digital file ready for exchange and analysis.
Yes, XBRL supports reports in multiple languages and adheres to various accounting standards. This allows global companies to present their financial data in diverse languages and follow different rules.
The technical specs, like XBRL 2.1, lay down the guidelines for making XBRL documents. They form a framework for standardizing business and financial info sharing.
Expect improvements in XBRL, such as inline XBRL (iXBRL), which mixes data into HTML for better readability. This and other updates will enhance data quality and reporting methods.
