ACCT3321 - Financial Accounting: XBRL Reporting Analysis Report

This report examines the Extensible Business Reporting Language (XBRL) and its application in financial reporting. It begins with an introduction to XBRL as a global standard for digital business reporting, focusing on its role in providing common semantic meaning to accounting information. The report explores the current and future uses of XBRL platforms, particularly in the context of the Australian Securities and Investment Commission (ASIC). Part 1 defines XBRL, detailing its function in enhancing the accuracy and accessibility of financial data for users, and highlights its benefits like digitalization and improved comparability. It also discusses the government's stance on XBRL reporting, including the options for mandatory or voluntary iXBRL submissions. Part 2 includes a definition of XBRL and IFRS taxonomy. The report concludes by emphasizing XBRL's importance as a tool for efficient financial data reporting, benefiting both companies and regulatory bodies, and its advantages over traditional methods. The report includes references to relevant academic literature.

Financial Accounting and Practice

Contents
Financial Accounting and Practice 1
Introduction 3
Discussion 4
Part 1 4
Part 2 8
Conclusion 9
References 10

Introduction
XBRL is considered as the framework that is available freely to the global business organisation
for achieving the objective of giving the accounting information to the company. This helps in
allowing the common semantic meaning to the company so that they are able to achieve the
objective of maximising the sales of the company (Awad, 2018). The language that helps the
company to analyse the reporting structure and allows the company to achieve the online
structure of accounting reporting. This study is based on the current and the future planned use of
the XBRL platform for reporting the firm's financial information. Also in this report, the
arguments which are in favour and against the listed companies in Australian securities and
investment commission would be analysed which is required for using the XBRL format.

Discussion
Part 1
a) The term XBRL stands for the Extensible business reporting language which helps in
providing a common, electronic format for the business unit in the global world. This type of the
business reporting helps the company to develop and communicate the information more
accurately to the users of the financial information and the business houses so that they are able
to analyse the financial condition of the company (Cormier, and et. al., 2016). This is considered
as one of the tools that help in barcoding the data of the company and also helps in adding
additional information to the financial information of the company. This is the type of
information that is provided by the company in a manner that they are able to describe the
information such as the period, currency and the precision of the firm's current market and what
the financial condition of the company is. This report does not change the financial report and
what is being reported this only simple changes the way in which the report is being provided by
the company (Urvina-Barrionuev and et. al., 2017). The report that was published by Deloitte in
the year 2013 was to analyse the past, present and the future condition of the company's financial
reporting standards. This is seen through the report that it has been around five years since the
SEC has amended the regulations which require the company to provide the XBRL encoded files
which contain the financial statement of the company. The ultimate objective of this was to
improve the ability of the financial statement of the users so as to access and to analyse the
financial data of the company more precisely.
The main and the ultimate objective of using the XBRL was to improve the ability of the
financial statement for the users and the access and analyse the financial data of the company in
a more brief and accurate way. This is seen that XBRL is an international consortium of over 650
members (Đurković, Dmitrović-Šaponja and Đurković, 2017). This is considered as the statutory
requirement that has to comply with the companies for reporting their information and to analyse
the way of reporting the financial condition of the company.
The XBRL has used various important tools for reporting the financial transactions which are
considered to be future ready for the company. The future implication of XBRL includes the
following:

● The benefit of this is that it helps the company to digitalise the business reporting through
which they are able to make it more transparent.
● This would be used to communicate between the business and the users of the financial
information.
● Also through this company would be able to inform and the benchmark the financial
information more deliberately.
● The users of the data that is provided by the use of XBRL format would be used to make
a better investment option so that they are able to achieve the best result (Wang and
Wang, 2018).
● This would also be used by the company through which they are able to determine the
future of input, process and the output of the financial data that is presented to the
company.
The use of XBRL helps in benefiting the comparability through identifying the data which helps
genuinely in comparing and distinguishing the information (Fradeani, and et. Al., 2017). This
also helps the company to easily help in processing such information so that the reports and the
predefined work can be achieved by the accountants.
This is seen that the Australian federal government has released the paper which gives the
alternatives for the using the eXtensible business reporting language so that financial reporting in
Australia this helps in focusing on the possibility of the mandatory XBRL reporting. The
government has provided the option where they have identified that there is a mandatory
lodgement of the financial reports of the company either in the form of the XBRL format to
iXBRL format. This is seen that government has made that the voluntary lodgement of the
financial reporting in iXBRL has to be done by the company where they have they have to use
the PDF or paper format to file the information towards the company (La Torre and et. Al.,
2018). One of the options that are given to the company includes that the existing requirement of
the entities that they can select to lodge the data using XBRL but can select to lodge it using the
PDF or the paper format.
The securities exchange commission of USA has complied with the situation and this is seen that
they have mandated the use of XBRL and all the companies must file XBRL file for the

following manner (Tohang and Lan, 2017). The company which are having the worldwide public
float of an amount greater than $5Bn. This is made important for all the companies to apply the
large accelerated filters from the period ending June 2010. While all the other public companies
must comply within the period of June 2011.
b) The government of the country has made it important and mandatory for the companies to
lodge the financial statement as per the XBRL format. The government of the country has
identified that the best method to showcase the data that is available to the users or the
stakeholders of the company (Markelevich, Riley and Shaw, 2015). This is seen that by
analysing the financial information of the company various stakeholders and the users of the
company would be able to take a decision as this is made mandatory to the company and to the
users of the report. There are various advantages and disadvantages that are available to the users
which include the following:
Investors: This is seen that the company is using the XBRL format for filling the information of
the financial data that is available with them to the company. It is seen that as the information
that is filed by the company to the AISC will remain with them so the information of the
financial condition of the company can be taken by them at any point of time (Radu, 2016). This
also helps the investors of the company to identify the information which is available to them. As
the information has been filed in the XBRL format hence the information is accessible by the
investor at any point of time on demand by the investor (Stergiaki, Vazakidis and Stavropoulos,
2015). Whereas this is seen that as the information is available in XBRL format hence it would
not be possible for them to run the file as and when required.
Listed companies: This is seen that it is important for the companies to submit the financial data
of the company in the form of the XBRL format to the ASIC. For this, the company has to use
the option which is given by them to so that they are able to submit the data to the company in
the desired format. Through this process, the company is able to submit the required information
more accurately through which they are able to increase their performance (Shan and Troshani,
2016). This helps in reducing the cost to the company and also enables them to automatically
able to comply with the required law and the structure. Whereas there are various disadvantages
that are related to this as the company has to file the data on the regular basis and has to employ
new employees and train the old one so as to comply with the legal requirements (Sir, 2018).

This also hampers the company's financial transparency and hinder the ability of the company to
hide the financial tricks in the books which are considered as one of the biggest limitations.
Government: XBRL is considered to be one of the main and important sources of information
for the government of the country. This is seen that through the process of XBRL the
government is able to identify the financial information of the company and is able to check that
whether the financial information that is provided to the ASIC is true or not. This is seen that
government would get benefited through this process and the information that is available to the
government would be secured in the best available manner (Singerová, 2015). This would also
increase the government working as the government has to make new portals and various other
departments which would check and consider the financial performance and the data that is
available.

Part 2
To:
Subject: Definition of XBRL and IFRS Taxonomy
Dear,
This mail is being written to you so that you are able to be comfortable with the term XBRL and
the IFRS taxonomy. The term XBRL is a form of reporting language that the developed to
improve the way in which the financial information of the company is checked and the shared
with the authority. This language is used by the company to identify the functioning of the
financial information of the company. This is seen that XBRL uses the tags and identify the
information which is related to the company's financial information. This helps in the easy
transition of data between the business and the government of the country.
While the term IFRS taxonomy was developed by the FASB. This is considered as the
translation of the IFRS standards into the XBRL form. This is used to improve the
communication between preparers and the users of the financial information to comply with the
IFRS standards. Prepares can use the standards to tag the required disclosures and can also easily
make the information available to the users of the company.
Yours faithfully

Conclusion
From the above study, it is seen that XBRL is considered to be one of the most important tools
that are used by the companies to report the financial data of the company to the regulating
authority and to various stakeholders of the company. This is seen that this is considered to be
the best method for the company to reveal the financial data of the company as this is easier to
implement and the organisation are able to work in more accurate manner with this method. This
method is considered to be easy and is less expensive than the traditional method. While this is
seen that this method has been made applicable to the whole of the world and every organisation
which is following the guidelines has to follow it.

References
Awad, I.H.A.K., 2018. Evaluating the Quality of IFRS Information Obtained from XBRL/IFRS
Taxonomy, with a Case Study (Doctoral dissertation, Tanta University).
Cormier, D., Dufour, D., Luu, P., Teller, P. and Teller, R., 2016. The Incidence of XBRL
Voluntary Disclosure on the Value Relevance of Earnings: The Role of Corporate. Cashier de
recherche, p.09.
Đurković, E., Dmitrović-Šaponja, L. and Đurković, O., 2017. A possible avenue of
implementation of the XBRL standard for maximum possible efficiency of financial reporting in
the Republic of Serbia. Strategic Management, 22(1), pp.12-21.
Fradeani, A., Regoliosi, C., D’Eri, A. and Campanari, F., 2017. Implementation of mandatory
IFRS financial disclosures in a voluntary format: evidence from the Italian XBRL project.
In Reshaping Accounting and Management Control Systems (pp. 331-347). Springer, Cham.
La Torre, M., Valentinetti, D., Dumay, J. and Rea, M.A., 2018. Improving corporate disclosure
through XBRL: An evidence-based taxonomy structure for Integrated Reporting. Journal of
Intellectual Capital, 19(2), pp.338-366.
Markelevich, A., Riley, T. and Shaw, L., 2015. Towards Harmonizing Reporting Standards and
Communication of International Financial Information: The Status and the Role of IFRS and
XBRL. Journal of Knowledge Globalization, 8(2).
Radu, F., 2016. XBRL-The business Language in the Digital Age. Ovidius University Annals,
Economic Sciences Series, 16(2), pp.589-594.
Shan, Y.G. and Troshani, I., 2016. The effect of mandatory XBRL and IFRS adoption on audit
fees: Evidence from the Shanghai Stock Exchange. International Journal of Managerial
Finance, 12(2), pp.109-135.
Singerová, J., 2015. XBRL: different approach of utilization. Procedia Economics and
Finance, 25, pp.134-140.
Sir, E., 2018. Inline XBRL New Emerging Technology. Global Journal of Management And
Business Research.
Stergiaki, E., Vazakidis, A. and Stavropoulos, A., 2015. Development and Evaluation of a
Prototype web XBRL-Enabled Financial Platform for the Generation and Presentation of
Financial Statements according to IFRS. International Journal of Accounting and Taxation, 3(1),
pp.74-101.

Tohang, V. and Lan, M., 2017. The impact of the adoption of XBRL on information risk in
representative countries of the Scandinavian Region. Jurnal Keuangan dan Perbankan, 21(4).
Urvina-Barrionuevo, R., Mayorga-Mayorga, F., Álvarez-Mayorga, E. and Lavín, J.M., 2017,
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In 2017 Fourth International Conference on eDemocracy & eGovernment (ICEDEG) (pp. 205-
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Wang, B. and Wang, D., 2018. A Process Model for XBRL Taxonomy Development. Journal of
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