scholarly journals Users’ Perspective of Extensible Business Reporting Language (XBRL) in India

2017 ◽  
Vol 3 (2) ◽  
Author(s):  
S. Raghavendra Raju ◽  
B. Mahadevappa
Keyword(s):  
Financial Reporting ◽  
Paradigm Shift ◽  
Electronic Communication ◽  
Financial Statements ◽  
Financial Data ◽  
Annual Reports ◽  
Primary Data ◽  
Business Reporting ◽  
The Difference ◽  
Qualitative Characteristics

There has been a paradigm shift in financial reporting after the introduction of Extensible Business Reporting Language (XBRL). XBRL is a language for electronic communication of business and financial data. The Ministry of Corporate Affairs of Government of India has mandated e-filing of annual reports for certain class of companies in XBRL format from April 1, 2011. Now, more than 1 lakh companies are filing their financial statements through XBRL. The purpose of this paper is to know the users’ awareness about XBRL. The sample for the study includes 76 users. Research instrument was constructed to collect the primary data from the respondents. Hypothesis was tested to know the difference in the users’ perspective about XBRL. The results of the study were presented in five qualitative characteristics: understandability, reliability, relevance, comparability, and timeliness. The results of the paper indicate that there is more understandability, reliability, and relevance of financial statements among the users along with easier comparison of XBRL reports across companies.

scholarly journals Qualitative characteristics of business reporting: A historical perspective

2021 ◽  
Vol 18 (3, special issue) ◽  
pp. 360-366
Author(s):  
Vishal Verma ◽  
Yousef Shahwan
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Historical Review ◽  
Financial Statements ◽  
Business Reporting ◽  
Financial Reporting Standards ◽  
Economic Decision Making ◽  
Income Statement ◽  
Basic Objective ◽  
Qualitative Characteristics

This paper aims to provide a historical review of several leading documents in relation to the objectives of financial statements. Four main documents were discussed, analyzed and compared, using the content analysis approach. These documents are The Trueblood Report (1973), The Corporate Report (1976), Making Corporate Reports Valuable (McMonnies, 1988), and Guidelines for Financial Reporting Standards (Solomons, 1989). These documents were selected because they have been described as milestones in addressing qualitative characteristics of financial and business reporting. The historical review showed that the basic objective of financial statements is concerned with providing useful information for economic decision-making. In addition, it emphasized that information is useful when: 1) it shows the economic reality of the financial statements (i.e., balance sheet, income statement, and cash flow statement); and 2) it is relevant and reliable to users

Adios! Airways: An Assignment on Mapping Financial Statements to the U.S. GAAP XBRL Taxonomy

2010 ◽  
Vol 25 (3) ◽  
pp. 465-488 ◽  
Author(s):  
Roger Debreceny ◽  
Stephanie Farewell
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Annual Reports ◽  
Business Reporting ◽  
Instructional Resource ◽  
Mapping Process ◽  
Interactive Data ◽  
The U.S

ABSTRACT: XBRL, based on XML, is an Internet language for disclosure of business reporting language. XBRL is the technological foundation for the interactive data mandate by the Securities and Exchange Commission (SEC). The mandate requires corporate filers to disclose data in quarterly and annual reports in XBL. A key building block supporting the mandate is a substantial U.S. GAAP XBRL taxonomy that encapsulates most of the reporting concepts found in financial reporting. Filers must align their existing reports to the taxonomy. The accuracy of mapping financial statement line items to the U.S. GAAP taxonomy is of fundamental importance. Mapping errors may be as simple as mapping to an incorrect taxonomy concept, which should be discovered during review. Ineffective mapping may lead to unnecessary extensions, which hinders comparability. This instructional resource guides students through the steps in mapping financial statement line items to the taxonomy. While the case does not require students to create an extended taxonomy, it does require completion of a spreadsheet detailing the mapping process that is typical of practice. In addition, the resource provides a checklist that users can refer to during the mapping process.

scholarly journals Zmiany w raportowaniu CSR w Polsce - studium przypadku

2017 ◽  
Vol 5 (3) ◽  
pp. 5-17
Author(s):  
Anna Badura-Mojza
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Data ◽  
Social Reporting ◽  
Annual Reports ◽  
Warsaw Stock Exchange ◽  
Reporting Channels

The aim of this article is to present the changes in non-financial reporting and reporting channels of CSR data by companies listed on the main market of the Warsaw Stock Exchange within the WIG 30. Analyses show that companies are diverging from showing information in the field of CSR in traditional financial statements and decide on the disclosure of CSR in special reports and on their websites. In addition, Polish leaders of non-financial reporting, decided to prepare integrated annual reports. Although social reporting in Poland is still a new area, practice indicates on the dynamics of development in the field of reporting non-financial data.

Reporting Technologies and Textual Readability: Evidence from the XBRL Mandate

2021 ◽  
Author(s):  
Xitong Li ◽  
Hongwei Zhu ◽  
Luo Zuo
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Annual Reports ◽  
Financial Reports ◽  
Public Firms ◽  
Business Reporting ◽  
Perceived Benefit ◽  
Research Opportunity ◽  
Negative Effect

The eXtensible Business Reporting Language (XBRL) can standardize numerical disclosures and make it easier for computers to process and compare financial reports. This perceived benefit of XBRL has prompted the U.S. Securities and Exchange Commission to mandate that public firms must submit financial statements in the XBRL format as part of their financial reports. Leveraging the research opportunity created by the XBRL mandate, we examine whether financial reporting technologies affect how firms construct textual disclosures. We find that the initial adopters’ HTML-formatted annual reports become harder to read after the XBRL mandate. Further analysis reveals that this effect is concentrated among adopters with more quantitative disclosures, a smaller firm size, or a higher level of financial complexity. Importantly, we show that managers’ reduced attention to preparing HTML-formatted annual reports, rather than increased disclosures, is likely the explanation for this decrease in textual readability. We also find that the negative effect on textual readability persists at least in the subsequent year. Our findings suggest that the XBRL adopters need to pay attention to process optimization and technology enablement to mitigate the possible negative effect of XBRL adoption on the readability of financial reports.

Composition and characteristics of the financial statements elements in accordance with IFRS

2020 ◽  
pp. 36-42
Author(s):  
Mohammad Tariq Jassim
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Current Trends ◽  
Similarities And Differences ◽  
Qualitative Characteristics

In a market economy, the role of International Financial Reporting Standards is increasing. In order to understand their significance in modern conditions it seems necessary to consider the peculiarities of evolution of IFRS formation. The article reflects actual issues concerning the role and significance of International Accounting and Reporting Standards in modern conditions. The author has defined the necessity of applying International Accounting and Reporting Standards by Russian companies. The article highlights the main elements and users of financial statements prepared on the basis of IFRS, and analyzes the similarities and differences that exist in the formation of financial statements, based on the requirements of IFRS and RAS. The main qualitative characteristics of financial statements are considered in detail. Based on the results of the research, the author has identified current trends in the transition to international financial reporting standards.

Qualitative Characteristics of Financial Reporting and Non-Financial Business Performance

2017 ◽  
Vol 4 (2) ◽  
pp. 1-22 ◽  
Author(s):  
Ahmed Al-dmour ◽  
Maysem F Abbod ◽  
Hani H Al-dmour
Keyword(s):  
Financial Reporting ◽  
Structural Equation ◽  
Business Performance ◽  
Demographic Characteristics ◽  
Primary Data ◽  
Business Organizations ◽  
Top Managers ◽  
Type Size ◽  
Qualitative Characteristics

The purpose of this article is to examine empirically, validate, and predict the reliability of the proposed relationship between the qualitative characteristics of financial reporting and non-financial business performance via the moderating role of the organizational demographic characteristics (type, size and experience). The article is based on primary data collected through a structured questionnaire from 239 out 328 of shareholdings companies in Jordan, and the single key respondents approach was employed. The quality of financial reporting was conceptualized by the IASB's framework fundamental qualitative characteristics (2008). The data were analyzed using structural equation modelling. The results showed that the magnitude and significance of the loading estimate indicate that the qualitative characteristics of financial reporting (i.e., relevance, understandability, faithful representation, comparability and timeliness) are significantly influence the non-financial business performance and the variation of relationship could be due to the demographic characteristics of the organizations (type, size, and experience). The article has important implications for accounting managers, auditors and financial practitioners and top managers in the surveyed companies and in similar organizations. The authors believe that the decision-makers of business organizations could benefit from this study's findings with a better understanding of the importance of the qualitative characteristics of financial reporting as well as their relationship with non-financial business performance.

XBRL Tag Extensions and Tax Accrual Quality

2020 ◽  
Author(s):  
Stephanie Walton ◽  
Liu L Yang ◽  
Yiyang Zhang
Keyword(s):  
Financial Reporting ◽  
Relative Rate ◽  
Financial Statements ◽  
Accrual Quality ◽  
Business Reporting ◽  
Prior Literature ◽  
Tax Reporting ◽  
Financial Reporting Comparability

The adoption of eXtensible Business Reporting Language (XBRL) requires management to label all information in their firm's financial statements and corresponding notes with either standardor custom extended tags. While prior literature has found that the rate of customization is associated with increased financial reporting complexity, there could be an unintended, beneficial consequence to tax reporting. We examine how the relative use of tax-related XBRL tag extensions could highlight unique tax activity characteristics, in turn increasing tax accrual quality and improving tax reporting transparency. We find that having a higher relative rate of extended tax tags is associated with higher tax accrual quality. That is, utilizing more tax tag extensions can assist in providing useful tax information, especially when a high number of total XBRL tags are used. Our results also suggest the need to reexamine the standard taxonomy to include more tax-oriented terms to improve financial reporting comparability.

XBRL Mandate and Timeliness of Financial Reporting: Do XBRL Filings Take Longer?

2018 ◽  
Vol 15 (1) ◽  
pp. 57-75 ◽  
Author(s):  
Hui Du ◽  
Kean Wu
Keyword(s):  
Multivariate Analysis ◽  
Financial Reporting ◽  
Annual Reports ◽  
Small Companies ◽  
Filing Date ◽  
The Public ◽  
Business Reporting ◽  
The Impact ◽  
Jel Classifications

ABSTRACT This study examines the impact of the Securities and Exchange Commission's (SEC) XBRL (eXtensible Business Reporting Language) mandate on the timeliness of financial reporting, measured by the reporting lag between fiscal period end and the filing date. Using annual and quarterly filing data from 2007 to 2014, we compare the reporting lags of XBRL reports to the lags of non-XBRL reports in three separate filing categories as defined by the SEC. The results show that by using XBRL the reporting lag is shortened by one to two days when companies file annual reports while the reporting lag is shortened by one day in quarterly filings. However, the results are manifest for both large accelerated filers and accelerated filers. In the multivariate analysis, we do not observe the improved reporting lag when using XBRL among non-accelerated filers. While we provide the evidence that the XBRL mandate improves the timeliness of financial reporting for large filers, we question the public policymaking of the XBRL mandate that has the intention of benefiting small companies and their investors. JEL Classifications: D83; G14; G18; M48; Z18

scholarly journals Accounting conservatism and uncertainty in business environments; using financial data of listed companies in the Tehran stock exchange

2020 ◽  
Vol 5 (2) ◽  
pp. 179-194
Author(s):  
Marziyeh Hejranijamil ◽  
Afsane Hejranijamil ◽  
Javad Shekarkhah
Keyword(s):  
Financial Reporting ◽  
Business Strategy ◽  
Stock Exchange ◽  
Financial Statements ◽  
Accounting Conservatism ◽  
Financial Data ◽  
Financial Reports ◽  
Content Type ◽  
Business Environments ◽  
Natural Mechanism

PurposeApplying conservatism to the preparation of financial statements has been considered not only as a natural mechanism to protect the interests of the stockholders but also as a practical way to assist managers to deal with uncertainty in business environments. This study aimed to determine if increasing uncertainty can lead to raising the level of conservatism used in preparing financial statements. The result of the study could provide a better understanding of the factors that influence the level of applying conservative methods in accounting and financial reporting.Design/methodology/approachThe model introduced by Basu (1997) was used to measure accounting conservatism. Business strategy and alertness were considered as two proxies for classifying companies according to their level of uncertainty. By adding each proxy of uncertainty to the model and using the financial data of 183 companies for five years (from 2013 to 2018), the multiple regression models were estimated through EViews. It was assumed that inert companies and those with prospector strategy face a higher level of uncertainty. Consequently, they were expected to report their financial status conservatively.FindingsFindings revealed that companies, which adopted a prospector strategy, applied more conservative methods in their financial reports. This indicated that facing wider uncertainty results in reporting more conservatively, which could not be said about inert companies.Originality/valueThe current research is the first research undertaken in a developing country such as Iran, and the study's results may benefit other developing countries.

Financial reporting quality and share price movement-evidence from listed companies in Bangladesh

2020 ◽  
Vol 18 (3) ◽  
pp. 425-458
Author(s):  
Md. Mamunur Rashid
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Share Price ◽  
Financial Reporting Quality ◽  
Annual Reports ◽  
Developing Economy ◽  
Price Movement ◽  
Content Type ◽  
Qualitative Characteristics

Purpose The purpose of this study is to examine the effect of financial reporting quality (FRQ) on share price movement (SPM) of listed companies in an emerging and developing economy – Bangladesh. Design/methodology/approach The study analyzed 296 annual reports for the year 2015 and 2016 in examining the effect of FRQ on SPM. Ordinary least squares (OLS) regression model is used to examine the hypothesized relationship among the variables. A modified version of Lang et al. (2003) has been adopted in measuring the SPM. FRQ is measured using the qualitative characteristics approach as defined by the International Financial Reporting Standard Framework and used by Beest et al. (2009) and Braam and Beest (2013). Findings The study finds a positive association (though not significant statistically) between the FRQ and SPM in the country’s leading stock exchange (Dhaka stock exchange). Furthermore, the effect of enhancing quality on SPM is found to be stronger as compared to fundamental quality. Majority of the FRQ constructs demonstrate an improvement in the quality score in the year 2016 as compared to 2015 except for relevance. Research limitations/implications The key limitation of the study is that it focuses only on two years (2015 and 2016) annual reports data in measuring FRQ and its effect on SPM. Originality/value The study uses qualitative characteristics approach in measuring the FRQ and to examine its effect on SPM using the context of an emerging and developing economy – the case of Bangladesh.

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