As learned in this chapter accountants and financial analyst

As learned in this chapter, accountants and financial analysts around the world have agreed to use XBRL to format financial statements and other reports. In about 200 words, outline the advantages that companies and financial analysts obtained by using the XBRL standard to replace printed reports and data formatted for download into spreadsheets software (such as Microsoft Excel). You can research this subject in your school library or online using your favorite search engine and the links provided for this excercise in the Web links.

Solution

Solution :

The web based financial reports are exact electronic reproductions of the printed annual reports . The extensible business reporting language (XBRL) format is designed to provide information for a wide variety of purposes .

Publication of financial information in the XBRL format can save significant amounts of time and cost in preparing and disseminating financial information, as well as in searching and exploring information into other XML - aware applications. XBRL offers many benefits to a variety of users , including investors , analysts , companies , industries , software , vendors , and publishers of financial statements . Under the XBRL format , they are able to extract , analyze and process electronic financial statements on a more efficient and timely basis . XBRL enables a variety of formats therefore investors , creditors and other users of financial reports can receive the information they prefer in a specific style of analysis . By making financial information available on corporate web sites via XBRL , investors who have a reasonable understanding of financial reporting can obtain the desired financial information constantly and on real time basis .

Currently publicly traded companies typically prepare three sets of financial statements : one for external use , one to filed with the SEC , and one to post on the company website . Under the XBRL format , financial statements will be to prepared only one time to be printed , posted on the web , or filed with the SEC . This one time processing and preparation of financial reports in serving abroad range of purposes should reduce the opportunity for manipulation of financial information and , accordingly reduce the likelihood of financial statement fraud .