What is XBRL Format?
XBRL, eXtensible Business Reporting Language, is an XML-based markup language used to communicate financial and business data electronically. Although XBRL is based on XML, XBRL software is generally user-friendly, requiring no previous knowledge of XML and no IT background. Any entity can use XBRL to encode its financial information such as financial statements, earnings releases, and so forth. In simple terms, XBRL is a tool that benefits all users of financial statements by providing increased functionality over a traditional paper, Hyper Text Markup Language (HTML), and other image-based financial reporting formats.
XBRL is a language for the electronic communication of business and financial data that has revolutionized business reporting around the world. Its major benefits include ease of preparation, analysis and communication of business information by the corporates. It offers cost savings, greater efficiency, improved accuracy as well as reliability to all those involved in supplying or using financial data. With increased coverage, it is hoped that the XBRL data thus collected would significantly enhance the regulator’s capabilities in policy formulation and regulatory functions for the advantage of corporates as well as public and investors at large.
Various taxonomies have now been made available, which are aimed at ease and standardization of reporting. XBRL has brought in a new wave of corporate disclosure management. The taxonomies present us an opportunity to report in a standardized XBRL format. The XBRL format varies with the taxonomies and rules set by regulators.
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