The document discusses the role of XBRL (Extensible Business Reporting Language) in business reporting, emphasizing its potential to revolutionize financial data communication by improving efficiency, accuracy, and reducing costs. It lists both benefits, such as accessibility and reduced manual processes, and demerits, including high initial costs and potential complexity leading to errors. The overall conclusion suggests that XBRL will become the standard for recording and transmitting financial information globally.

1. UNIVERSITY OF MYSORE ,
MANASAGANGOTHRI

2. SUBMITTED BY:
SUSHMITA R GOPINATH
1ST YEAR Mcom “B”
TOPIC: ROLE OF XBRL IN BUSINESS
REPORTING
SUBMITTED TO:
PRATHAP T.M
FACULTY
DOS IN COMMERCE & MANAGEMENT
MANASAGANGOTHRI, MYSORE

3.  INTRODUCTION
 XBRL INDIA JURISDICTION
 XBRL INDIA JURISDICTION MEMBER
 MEANING OF XBRL
 HOW DOES XBRL WORK?
 BENEFITS OF XBRL
 DEMERITS OF XBRL
 CONCLUSION
 REFERENCES

4. INTRODUCTION
XBRL stand for eXtensible Business Reporting Language. It is
one of a family of XML languages which is becoming a
standard means of communicating information between
business and other stakeholders on the internet. XBRL is a
language for electronic communication of business & financial
data which is revolutionizing the business reporting around the
world. It provides major benefits like cost savings , greater
efficiency, improved accuracy and reliability to all those who
are involved in supply & usage of financial data. XBRL is being
developed by XBRL international a non profit consortium of
approximately 650 companies & agencies worldwide working
together to build XBRL & promote and support its adoption.

5. XBRL INDIA JURISDICTION

7. Meaning of XBRL

8. An XBRL document can be viewed as a system of
barcodes. These barcodes not only contain the
information but also attributes that describe the
information. The XBRL process can be understood better
with the help of the diagram to the left:
The source document is the annual report of the
company that is to be converted to XBRL.
The taxonomy of XBRL is in literal terms a dictionary of
elements that are reported. The taxonomy provides the
tags (barcodes) for all the elements appearing in the
annual report.
The creation of XBRL documents involves the process of
tagging the document. Tagging is the process of
assigning barcodes to all the elements appearing in the
annual report.
Once all the elements appearing in the annual report
have been tagged the XBRL Instance document is
generated and the process is complete.
The XBRL instance document contains all the facts that
are reported in the annual report along with the
descriptive attributes about the data that is reported. The
instance document is platform independent and can be
reused to represent and transfer data as per the
requirements of the user.
How does XBRL
work?

9.  It offers benefits to a range of users: In fact, anyone that wishes to
analyze or compare data can benefit from XBRL, as it makes information
more readily accessible to anyone – from stakeholders in a business to
investment analysts and government agencies.
 It reduces the need for manual data entry. Many businesses still rely on a
large number of manual processes to prepare and review their financial
statements, which is not only time-consuming but also carries the risk of a
data entry error. XBRL reduces a business’ reliance on such manual input
and review processes, meaning more time can be spent on data analysis.
 XBRL isn’t just for financial data. It’s a common misconception, but XBRL
isn’t just useful for financial reporting. In fact, XBRL can also be used to
communicate non-financial data, such as a business’ inventory status. This
means that, if a business leverages the power of XBRL, it could potentially
improve its own internal management reporting processes.
 Cost savings: Using XBRL, can be cost effective because it can be done
by one or two employees ,it doesn’t require a mass population tp
accomplish the task.

10.  COST: The largest disadvantage remains cost. Although some experts say,
over time, XBRL could lead to up to a 25% decrease in reporting costs,
some companies may find it difficult to justify the initial costs" Unless a
company has an automated tagging process, tagging XBRL data consumes
hours of labor, increasing the cost associated with using the language.
 XBRL Complexity can lead to transmission errors: XBRL is complex
and not easily read or written by accountants, regulators or business users,
necessitating the dependence on experienced IT developers to assist with
the electronic filing. XBRL’s complexity combined with letting inexperienced
users create data for transmission increasing the likelihood of errors.
 XBRL may increase information abuse. In an information age where
dishonest people are electronically enabled, abuse is bound to occur. As
more information becomes electronically companies will need to implement
appropriate safeguards to protect their information, including XBRL tagged
information.

11. XBRL is set to become the standard way of recording, storing
and transmitting business financial information. It is capable of
use throughout the world, whatever the language of the
country concerned, for a wide variety of business purposes. It
will deliver major cost savings and gains in efficiency, improving
processes in companies, governments and other organizations.

12. REFERENCES
 https://www.xbrl.org/
 https://ca.xbrl.org/xbrl-benefits/
 http://xbrl-reporting.blogspot.com/2011/02/some-
of-pros-and-cons-of-xbrl.html
 https://blog.aicpa.org/2013/09/beyond-
compliance-the-benefits-of-xbrl.html