XBRL is an acronym for eXtensible business reporting language. This electronic communication of financial and business data language was created to provide financial statements on the Internet. This new "language" has a key advantage: each item of data is treated as an individual piece of data and not as a single block of text. In this article, we will learn more about this language and how it helps businesses keep records of their financial situation.
The financial data can now be identified by the computer of the recipient because it has been tagged. Other purposes can be used by auditors, financial analysts, regulators, and auditors. They also present a variety of options in a fraction-of-a second, which eliminates the possibility of human error when re-keying financial data.
This will enable flexibility while increasing transparency and timely dissemination of relevant financial information. The financial data has been tagged prior to publishing on the Internet. It is the responsibility of the directors to ensure the correctness and accuracy of the financial statement in XBRL format.
While XBRL is not yet implemented in Malaysia, Suruhanjaya Syarikat Malaysia will likely implement it soon. This is evident from the increasing use of XBRL throughout the world, including in Singapore, which has used XBRL for a long time. Japan, Korea, and Australia are also adopting XBRL formats in the Asia Pacific.