As XBRL is a software-based technology, preparers will need to use a software tool to apply the concepts discussed in this guide. To understand what software will be most helpful in working with XBRL, preparers must first understand the different software functions available.

Some software tools include all required functionality for: Extension, Validation, and Instance Document Creation, whereas others offer this functionality separately or as part of a set.

The particular situation and needs (Regulatory requirement or a Company’s requirement) will determine which software to choose.

Phase 1 for XBRL did not allow extension of Taxonomy,

Phase 2 for XBRL may require extension of Taxonomy and other such feature which could be a mandatory feature required in the software.