A Comparison of XBRL Filings to Corporate 10-Ks—Evidence from the Voluntary Filing Program (original) (raw)
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Does it add up? Early evidence on the data quality of XBRL filings to the SEC
Journal of Accounting and Public Policy, 2010
journal homepage: www.elsevier.com/locate/jaccpubpol file key performance reports in the Commission's EDGAR data repository in the eXtensible Business Reporting Language (XBRL) format. 2 This research concentrates on one aspect of the SEC interactive data filings -the correct mathematical computation of related numeric facts in the filing. There are three reasons for conducting this research. First, computational errors are one of the most important aspects of data quality in the reporting process. In financial reporting, computational errors affect validity, completeness, accuracy, reliability and, when viewing filings longitudinally, consistency. These are key attributes of data quality ITGI, 2007;. The effectiveness of the SEC's mandate will be determined, in large measure, by the data quality of the information filed by corporations. A key objective of the SEC's program is to develop an ecosystem that supports the production, collection and distribution of data to a wide variety of information consumers . High quality data will be an important attribute in the ecosystem as well as meeting the SEC's own supervisory requirements. If information consumers cannot rely on the soundness of mathematical relationships, they may lose trust in the complete information set. Second, identification of computational errors in XBRL filings is readily tractable with automated tools. This is in contrast to other formats such as HTML or PDF, which do not provide sufficient semantics to undertake automated analysis of data quality attributes. Third, policy prescriptions from research on computational errors have immediate benefits for the Commission, filers, information consumers, the accounting profession and other stakeholders.
Critical reflection on XBRL: A “customisable standard” for financial reporting?
International Journal of Accounting and Financial Reporting, 2013
In this paper, we discuss the dual power of XBRL to standardise and/or accommodate firms’ financial reporting practices. We first develop a conceptual framework for understanding which factors may affect the adoption of XBRL and, in turn, standardise or customise financial reporting. We then examine the XBRL implementation models adopted in two countries: Italy and the US. In Italy, XBRL is required through the application of a standard taxonomy (the Italian GAAP Taxonomy), without the ability to create and submit taxonomy extensions. Conversely, in the US, XBRL is required through the application of a standard taxonomy (the US GAAP Taxonomy), along with the ability to define individual extensions to be submitted to the SEC. We discuss the potential effects of taxonomy application on the representation of financial information. The application of a taxonomy on a “blind basis” (extensions not permitted) leads not only to the full comparability of financial data but also to a loss of idiosyncratic information. The application of a taxonomy on a “minimum basis” (individual extensions permitted) preserves specific information, but causes a potential loss of data comparability.
Attesting Adios! Airways' XBRL Filings: A Case Study on Performing Agreed-upon Procedures
Accounting Education, 2012
On 30 January 2009, the Securities and Exchange Commission (SEC) released rule 33-9002 (SEC 2009). This rule phases in the required use of XBRL. The accuracy of mapping financial statement line items to the US GAAP taxonomy and the tagging of the financial statement facts are of fundamental importance to the accuracy of the XBRL instance document. Currently, there is no requirement of separate assurance on XBRL filings. However, given the significance of the information made available, firms may find it desirable to obtain attestation services. This case provides students with an agreedupon procedures assurance engagement plan based upon SOP 09-1 -Performing Agreed-Upon Procedures Engagements that Address the Completeness, Accuracy or Consistency of XBRL Tagged Data‖ released by the Auditing Standards Board in 2009 (ASB 2009).
SSRN Electronic Journal, 2000
The issue of determinants of voluntary XBRL adoption has drawn considerable attention from the academic community around the world. In the U.S., the voluntary XBRL adoption process evolved under the SEC-administered XBRL Voluntary Filing Program (VFP). A number of papers have attempted to study firm-specific characteristics of VFP participants. Higher innovativeness and stronger corporate governance have been found to be significant factors associated with voluntary XBRL adoption in the U.S. However, these factors do not explain the managerial interest in participating in the VFP. We extend the literature on voluntary adoption of XBRL by focusing on the characteristics of the executive team to investigate whether they are associated with the voluntary adoption of XBRL technology. Specifically, we evaluate whether executive teams (CEO, CFO, and CIO) with higher financial or information system competencies were more likely to voluntarily adopt XBRL technology by electing to participate in the VFP. We also evaluate whether financial and information system competencies within the executive team affected the quality of the XBRL-tagged filings provided under the VFP. We conjecture that higher competency levels would reduce error rates. We find that higher levels of information systems competencies were positively associated with early adoption of XBRL but, surprisingly, we find that higher levels of financial expertise were negatively associated with early adoption of XBRL. We also find that for participants in the VFP the two areas of expertise are differentially associated with XBRL filing quality. Information systems competency is negatively associated with the excessive use of extension taxonomies, errors and warning in the instance document, and reporting lag, whereas financial expertise is negatively associated with taxonomy errors and warnings. These results can be used as a guide for investigating voluntary adoption of other financial reporting technologies, voluntary XBRL filings in other jurisdictions and other voluntary disclosures such as sustainability reporting and voluntary standardized business reporting in XBRL in jurisdictions where such reporting is not mandatory. They can also be used to investigate antecedents of quality in mandatory filing regimes.
Financial reporting comparability: toward an XBRL ontology of the FASB/IFRS conceptual framework
As a mechanism for the exchange, transmission, and reporting of accounting and financial data, eXtensible Business Reporting Language (XBRL) makes great strides toward standardisation. However, given the global nature of contemporary financial markets, XBRL reporting must transcend or accommodate differences in reporting standards. Presently, the two standards for XBRL reporting, the US Generally Accepted Accounting Principles (US GAAP) or International Financial Reporting Standards (IFRS), make reconciling meanings between these standards a laborious and error-prone affair. As the audience for this reporting often spans countries and cultures, many have a stake in digesting XBRL-formatted financial reports. This paper addresses the question of how cross-cultural and transnational consumers of XBRL statements can derive meaning from these reports. We present an ontological approach toward solving this problem which includes a financial reporting ontology and associated architecture for comparing concepts across XBRL taxonomies. The architecture is explained, evaluation criteria offered, and future research approaches toward realising artefacts using this architecture are proffered. . His research interests are in software systems development, small team development, mobile applications development and information systems security. Many of his other interests are student-focused where he advises student organisations and coaches students in software competitions.
Feeding the information value chain: Deriving analytical ratios from XBRL filings to the SEC
2010
Abstract A key public policy driver of XBRL adoption in the USA and elsewhere has been to make information on corporate performance and risks readily available to information consumers. The financial statement data filed with a number of regulators and stock exchanges provide the raw material for one of the most important aspects of peer group analysis, which is the derivation of financial statement ratios. This paper investigates the ability of information consumers to derive ratios from filings in XBRL made to the SEC.
The current study had explored the Extensible Business Reporting Language (XBRL) among various stakeholders from a financial reporting perspective. In addition, the impact of the benefits on users, organization and preparers might vary according to the culture, country or financial regulations. Thus, this research will focus on Malaysia since Malaysia is multi-cultural and the adoption of XBRL can be considered as a new development. Pertaining to this research, it is important to understand the concept of a new reporting technology and the way XBRL will provide interactive data. The awareness and intention to adopt the XBRL will resume effectively once users, preparers and regulators are able to understand the whole concept of XBRL. This research is considered significant in order to explore the readiness and awareness of new reporting technology in Asia, particularly in Malaysia. This study found only a few respondents was fully aware of XBRL, while the majority of respondents were unaware about XBRL. Besides awareness, the study found that there are approximately 67.2% of respondents who are likely to investigate the XBRL technology, which indicates that there is a possibility that XBRL will be more significant and eventually accepted by stakeholders. This study found that approximately 3.1% understood fully what XBRL is and 18% understood the basic concepts. Furthermore, the researchers had explored the respondent's expectation on several concepts pertaining to relative advantage, compatibility, complexity and intention to use, and the results had shown that most respondents' were not aware or even understood what XBRL is.