Many companies use statements to show how much money they made, what went toward paying employees, and what went toward paying bills and other essentials. These statements are part of life, but it is imperative that they are standardized and easy to read. Therefore, people look toward creating digital versions that are reusable, accurate and unambiguous, which is why XBRL is used for financial reporting options.
These statements are governed by accounting standards and must be showcased the same each time. They must also include a variety of information, most of which will be the same except the values. Your industry may require a slightly different template than another, but you will have similarities, and yours will always look the same. Therefore, eXtensible Business Reporting Language is perfect for a variety of reports.
Flexibility is a requirement for creating a digital version of your paper statement, but that posed a challenge to accountants and companies alike. Accounting standards require that you use their terms and features, which can be tough when you go through a traditional statement and program. All reports can be different depending on who creates it, the general purpose, and more. Financials aren’t the same as forms, but XBRL allows for both.
XBRL allows you to prepare, exchange, publish, consume, and analyze your statements. If you imagine it as a tree or a template for the tree, you’ll see the differences. For example, a bunch of trees together may look similar, but no two trees are the same. As such, the taxonomies of the program can be altered so that no two columns are the same, either. You get an exact representation of your paper report, but you can make changes as necessary or add a column as a one-time option. Visit Colonial Stock Transfer Company for more information.