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The Internet financial reporting language known as XBRL continues to develop and has now reached the point where much of its promised benefits are available. The authors look at the history of this project, provide a case study of how Morgan Stanley has made use of the system and predict some developments for the future.

EXtensible Business Reporting Language (XBRL) is a revolutionary digital language that “tags” information for business reporting since it represents a universal standard for global business reporting. XBRL usage has a significant impact on auditors – both external and internal and is seen as a tool to implement the American Institute of Certified Public Accountants’ (AICPA) new reporting model. The model calls for real‐time, or continuous, reporting of company information. In order to do so reliably, continuous assurance on the data would need to be performed by external auditors. XBRL General Ledger (GL) is a taxonomy incorporating all ledger functions into XBRL. Thus, company information that typically takes days to create could be available in real‐time, anywhere in the world. This article reports on an XBRL survey conducted using accountants and auditors. Results indicate many accountants and auditors have low (if any) knowledge or experience with XBRL and do not perceive the intended benefits XBRL usage provides.

This study examines the moderating effect of XBRL mandatory adoption on the association between managerial ability and corporate tax outcomes.

This study used a quantitative method with panel data regression models using a sample of listed firms on the Indonesia Stock Exchange from 2010 to 2019.

The regression results indicate that XBRL adoption moderates the relationship between managerial ability on tax avoidance and tax risk. Firms with higher managerial ability have relatively greater tax avoidance practices and lower tax risk following XBRL adoption. In this study, the authors document unfavorable and unexpected consequences of XBRL in an emerging country.

Results are from a sample of firms from one emerging country.

It becomes important and necessary to develop more and better taxonomies with standardized extensions related to taxes information in the XBRL financial reporting to support the tax administrator’s performance in assessing firms’ tax avoidance and tax risk. The authors underscore the importance of improving taxes tags, including tags from financial statements and the disclosure section. This study may also inform policymakers in other countries that more adequate tax tags are needed to leverage benefit from XBRL adoption in monitoring and assessing corporate tax avoidance and tax risk.

This study is among the first to test an explanation for the moderating role of XBRL adoption on the association between managerial ability and corporate tax avoidance and tax risk.

Banks are intermediary institutions that play an important role in accelerating economic growth. Therefore, banks need to implement policies to improve the efficiency and quality of digital finance, namely through the Extensible Business Reporting Language (XBRL), which developed amid Society 5.0. However, the application of XBRL does not completely rule out the possibility of information asymmetry. Therefore, this study aims to analyze the effect of Extensible Business Reporting Language (XBRL) on asymmetric information with corporate disclosure as a moderating variable (expected to reduce information asymmetry) and analyze the effect of XBRL and control variables (size, turnover, stock price) on information asymmetry. The sample used is conventional banks that have been listed on the IDX and are not delisted, from 2015, since the implementation of XBRL until 2019 using the panel data regression method. The results obtained are that information asymmetry decreases with the application of XBRL, where corporate disclosure is a moderating variable. For the results of the control variable, the larger the size, the less information asymmetry and turnover. As for the stock price, the higher the stock price, the higher the information asymmetry.

This paper aims to examine the institutional factors that influence the adoption of eXtensible Business Reporting Language (XBRL) at the country level.

The authors use a large sample of 175 developed and developing countries over 14 years. Data is obtained from different sources including, World Development Indicators, the Reports on the Observance of Standards and Codes (ROSC) website and the Quality of Government database.

The results highlight the significance of coercive, mimetic and normative pressures in terms of ROSC reports, the extent of accounting globalisation and education. However, in further analyses, the authors found that coercive pressure is pronounced in developing countries. Nevertheless, mimetic pressure is an important, influential factor for all countries regardless of their status as developed or developing.

This study responds to the lack of research on the country-level factors of countries’ adoption of XBRL. The present study contributes to the literature by providing additional evidence on the country-level factors influencing XBRL adoption. Using the institutional theory, the authors provide a better understanding of the global diffusion of XBRL, which has attracted little attention. The study also complements prior literature on the adoption of international accounting and financial reporting practices.

The increasing availability of eXtensible Business Reporting Language (XBRL) financial statements motivates additional investigation of whether XBRL’s search-facilitating technology (SFT) and enhanced viewing capabilities facilitate information search and improve financial analysis decision quality and efficiency. This experiment investigates how using XBRL technology to view financial statements influences novice investors’ decision quality by affecting decision processes such as search strategy and effort, as well as decision efficiency (accuracy/effort) in a financial statement analysis task. In the experiment, randomly assigned student participants (n = 102) invested in companies using either static PDF-formatted or XBRL-enabled financial statements. No differences in decision quality (i.e., accuracy) due to technology use were observed. However, participants in the XBRL condition examined less information, used more directed search processes, and evidenced greater efficiency than did participants assigned to the PDF condition. Hence, the results suggest that XBRL SFT affects the use of differing decision processes relative to PDF technology.

The study investigates the relevance for stock markets of voluntary disclosure of eXtensible Business Reporting Language (XBRL) extensions [based on International Financial Reporting Standards (IFRS) or US-GAAP] for an international sample of US cross-listed firms.

The study examines if the disclosure of XBRL extensions by a firm provides relevant information to market participants. Towards that end, this paper investigates whether this type of disclosure affects the level of information asymmetry between insiders and investors and if it is value relevant. This study measures information asymmetry by bid-ask spread and value relevance by stock price or Tobin's Q.

After a certain level of disclosure of XBRL extensions, the impact on stock pricing is negative (creates noise on stock markets). Controlling for that phenomenon, both IFRS and US-GAAP XBRL extensions are value relevant. Second, results indicate that XBRL extensions are positively (negatively) related to stock market value for firms that exhibit positive (negative) earnings. This suggests a complementary effect between earnings and XBRL extensions on their relation with stock price or Tobin's Q. Finally, the results also indicate that both IFRS extensions and US-GAAP extensions are associated with lower information asymmetry (i.e. bid-ask spread).

To the best of the authors’ knowledge, this study is the first to investigate the relevance of XBRL extensions under IFRS for US cross-listed firms since the availability of the IFRS taxonomy for foreign private issuers that prepare financial statements under IFRS standards.

This paper aims to study the impact of the adoption of eXtensible Business Reporting Language (XBRL) on corporate tax avoidance.

This paper used a quantitative method with panel data regression models using a sample of firms listed on the Indonesia Stock Exchange from 2011 to 2018.

The regression results demonstrate that XBRL implementation does not have any impact on corporate tax avoidance. The results indicate that tax avoidance is not reduced following XBRL adoption. This report shows unexpected and unfavourable outcomes of XBRL financial reporting in a developing country.

This study employs a sample of firms from one emerging country only.

The study proposes several implications for using XBRL in tax reporting, which may help the tax authorities reduce tax avoidance. Regulators need to develop adequate taxonomies with standardized extensions related to tax information in the XBRL format. They include tax tags from financial statements and tax tags from the disclosure section, to gain more comprehensive corporate tax information.

This study proposes and tests an explanation for the effect of XBRL adoption on corporate tax avoidance in the context of a developing country.

The US Securities and Exchange Commission (SEC) requires public companies to file structured data in eXtensible Business Reporting Language (XBRL). One of the key arguments behind the XBRL mandate is that the technical standard can help improve processing efficiency for data aggregators. This paper aims to empirically test the data processing efficiency hypothesis.

To test the data processing efficiency hypothesis, the authors adopt a two-sample research design by using data from Compustat: a pooled sample (N = 61,898) and a quasi-experimental sample (N = 564). The authors measure data processing efficiency as the time lag between the dates of 10-K filings on the SEC’s EDGAR system and the dates of related data finalized in the Compustat database.

The statistical results show that after controlling for potential effects of firm size, age, fiscal year and industry, XBRL has a non-significant impact on data efficiency. It suggests that the data processing efficiency benefit may have been overestimated.

This study provides some timely empirical evidence to the debate as to whether XBRL can improve data processing efficiency. The non-significant results suggest that it may be necessary to revisit the mandate of XBRL reporting in the USA and many other countries.

This study aims to investigate the awareness of extensible business reporting language (XBRL) and the perception of chartered accountants of India concerning the inhibitors of XBRL adoption, namely, environmental, organizational and innovation factors developed by Troshani and Rao (2007) from Rogers’ innovation diffusion theory. In addition, the analysis also investigated the relationship between the perception of issues regarding XBRL adoption and individual characteristics (training, age, gender and professional experience).

A Web-based questionnaire was circulated through e-mail to chartered accountants registered with the Institute of Chartered Accountants India (ICAI) and 233 chartered accountants responded to the questionnaire. The data was analyzed using reliability statistics and multivariate regression analyses.

The results indicate that accountants perceived that environmental, organizational and innovational factors were challenging in adopting XBRL. Interestingly, training and experience were significant factors in explaining respondents’ perceptions.

From a practical panorama, the significance of issues implies that associations such as XBRL International, XBRL India, ICAI and the Ministry of Corporate Affairs should collectively take the appropriate steps to sustain and ameliorate the reliability and adoption of XBRL.

The results can motivate ICAI/Institute of Company Secretaries of India (ICSI) courses to teach academic content about XBRL.

The present study differs from previous research because it examines the inhibitors in adopting XBRL, namely, environmental, organizational and innovation factors, in an empirical setting. Moreover, to the best of the author’s knowledge, this is the first study to analyze the influence of individual factors on accountants’ perceptions about inhibitors of XBRL adoption.