XBRL and its impact on internationalization of Iran capital market

Abstract

Financial reporting as the final result of accounting information system for financial information users in private and state sectors is of great importance in terms of presenting financial condition and acting the role of management superintendence. Investors as the most important users of the information need transparent, complete and correct information. On the other hand, progress of IT and ITC made electronic financial reporting a necessity. The electronic reporting models are diverse in ITC knowledge field but extensible business reporting model that is called in accounting as “XBRL” could meet great part of these requirements and can be applied as efficient tool of providing, exchanging and analyzing financial information in important capital markets all over the world as obligatory or voluntarily. The present study evaluates XBRL and its impact on internalization of capital market in Iran. Based on the policies of Iranian government regarding the development of capital market and the attempt to absorb foreign capital in capital market in Iran, an efficient market with rapid, exact and reliable information systems is required. The reporting system can fulfill the government policies in interaction with the world capital markets and investors.