XBRL-Enabled Software Becoming More Commonplace
XBRL-US has released the results an AICPA-sponsored study of software vendors which shows that two-thirds of accounting software vendors have included, or will soon include, XBRL-enabled functionality in their products.
XBRL (Extensible Business Reporting Language) is a royalty-free, open specification for software that uses XML data tags to describe financial information for public and private companies and other organizations. XBRL benefits all members of the financial information supply chain by utilizing a standards-based method with which users can prepare, publish in a variety of formats, exchange and analyze financial statements and the information they contain.
The survey was conducted by the American Institute of CPAs, and the final report includes a number of important conclusions, including:
- Of 21 vendors, two-thirds have, or will have XBRL-enabled software by December 2004
- Of 59 products investigated, half will be XBRL-enabled by December 2004
- Market demand for XBRL is low to moderate, and is not driving the move to add XBRL-enabled features
- Vendors serving larger customers are XML and XBRL enabling their software more quickly
- XBRL export functionality is the main feature being added
- Understanding the technical aspects and benefits of XBRL is key to XBRL enablement
"As the demand for enhanced business reporting through higher quality, more transparent and timely information increases, the need for technology that enables better reporting also increases," said Paul Penler, Principal, Ernst & Young and chair of the XBRL-US Adoption Committee. "XBRL is the solution, and this survey indicates that many XBRL-enabled applications are available to users now and considerably more will be developed during the next 18 months. Accounting software vendors perceive an increase in the demand and are making the investment now to XBRL-enable their tools in order to meet the needs of information users."
The survey concludes that XBRL is making significant progress, and, though in the early stages, is being widely accepted and adopted among the software community.
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Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.