Digital Financial Reporting

Per Accounting Today,  Hans Hoogervorst, chairman of the International Accounting Standards Board (IASB), said Wednesday that he believes Extensible Business Reporting Language, or XBRL, has

“the potential to improve the effectiveness of financial reporting.”

Note that he used the term effectiveness.  Most people think XBRL is about efficiency, for example automating the exchange of information.

Mr. Hoogervorst seems to have a very realistic view, he goes on to say:

“We must understand what we have done well, and where there is room for improvement. We must work closely with preparers, with regulators, with the accounting profession and others to ensure that our work and initiatives are fully joined up. Most importantly, we must pay particular attention to the needs of the investor community. Investors should be beating down our doors to embrace XBRL, and we need to understand and address any barriers to its use.”

This document helps in the "room for improvement" area, helping accountants and other business users be successful.