XBRL FAQ Part-1st for companiesHemlata khandelwal / 2021-03-27 07:23:08
What is XBRl?
XBRL is an electronic communication language of business and financial data that is revolutionizing business reporting worldwide. Some benefits have been provided in form of the preparation, analysis, and communication of business information. It provides cost savings, greater efficiency, and better accuracy and reliability to all those who supply or use financial data. XBRL stands for Accessible Business Reporting Language. It is already in practical use in many countries and the implementation of XBRL is growing rapidly worldwide.
Who is developed the XBRL?
It is a royalty (aristocratically)-free software specification developed through a process of collaboration between accountants and technologists around the world. Together, they formed XBRL International, now composed of more than 650 members, comprising global companies, accounting, technology, government, and financial services bodies. It is an open specification based on XML that is being incorporated into many accounting and analytical software tools and applications.
What are the benefits of XBRL?
It has provided some benefits at all stages of business reporting and analysis. It is seen in cost savings, automation, faster, more accurate, and more reliable data handling, better analysis, and better quality of information and decision making. XBRL enables producers and consumers of financial data to switch resources from costly data processes, which typically include time-consuming comparisons, combinations, and re-entry of data. They can focus on analysis, aided by software that can validate and process XBRL information. The language of XBRL is flexible, intended to support all current aspects of reporting in various countries and industries. It means that it can be adjusted to meet special business needs, even at the individual organization level.
Who can benefit from using XBRL?
XBRL can be used by all types of organizations to save costs and improve efficiency in handling business and financial information. It is flexible and extensible, it can be adapted to a wide variety of different needs. whether the participant is preparers, transmitters, or users of business data.
What is the future of XBRL?
It is capable of being used worldwide, whatever is the language of the country for related business purposes. It has become the standard method of storing, recording and transmitting business financial information. This will lead to large cost savings and efficiency gains, improving processes across companies, governments, and other organizations. The companies that are registered with MCA by taking Company Registration online must take the benefit of this XBRL. To know more about XBRL keep waiting for the next part of FAQs related to XBRL.