The American Institute of CPAs today announced a collaboration with all five of the Big 5 accounting firms to develop a new computer language intended specifically for the preparation and exchange of financial reports and data.

Much has been written over the past year about the advantages of Extensible Markup Language, known as XML—a code similar in format to HTML, or the language of the Internet. AICPA joins with Arthur Andersen, Deloitte & Touche, Ernst & Young, KMPG and PricewaterhouseCoopers to develop XFRML, or XML-based Financial Reporting Markup Language. XFRML offers the business world a standards-based method of reporting financial information that also is designed to improve access and lower distribution costs.

Several more companies also join in this effort, including accounting solutions developers FRx Software Corporation and Great Plains; the e-content company, a division of Interleaf; FreeEDGAR.com, and the Woodburn Group.

AICPA offers its members and the public more information on XFRML at a new web site.