XBRL new thinking in financial reporting

Abstract

The financial report is the final result of  an informational accounting system of economic bodies, which is of a high importance in terms of presenting financial statement and responding and consulting to management. On the other hand, investors as major users of these data are always looking for comprehensive and clear information to make their final decision. Therefore, companies need a uniform and clear reporting language, to be intelligible for all its users. This new thinking resulted in the emergence of new methods of financial reporting named XBRL. Several economic enterprises all around the world are using XBRL  as a standard reporting method. XBRL stands for extensible Business Reporting Language is a corresponding to HTML in web language. in simple words, it is a tool to be used by information providers to enter information in the system. Hence, XBRL can be considered as a bar coding system that allows companies to use some common national or international labels for determining specific reporting concept in a company. The study provides a comprehensive definition for XBRL system and attempts to recognize the benefits of using such a system, and also, categorizes the effects of system in details. Then, the research attempts to find a relationship between this system and, accounting and auditing systems, and analyses the benefits and necessities of applying this system by describing its terms of application.