XBRL impact on the accounting information

Topics: Auditing, Audit, Financial audit Pages: 7 (2182 words) Published: February 19, 2014
3. XBRL impact on the accounting information
As we discuss the accounting information is important on enterprise, below I will further analysis on how the XBRL case the innovation on accounting information system. First, enhance the transparency of the accounting information. It is important to show transparency information and report to the public. Recently, due to domestic and foreign securities fraud cases happing on the stock market and listed company, accounting transparency are becoming a public topic. Different parties and companies concerned to pay special attention to the problem of accounting transparency. The XBRL is impossible to eliminate fraud and cheating, but the XBRL could help to improve the transparency of accounting information. Because XBRL will adjudge the company’s financial report compliance with accounting standards by electronic ways, all the other types of the enterprises report also can be adjudged on the same way by XBRL (such as tax returns , or Commission report) . Additionally, XBRL will also help to improve the efficiency of supervision. Using XBRL, all companies report can be go through by analyzing software. Abnormal data in the finical report will be more easily found. Regulators may easily give industry analysts to all the finical report from listed companies. Secondary, XBRL helps revolution on financial report mode. In 21st century, the companies that like information technology are eager to achieve enterprise real-time reporting within it support, the purpose of this innovation is that can accurately identify problems and business opportunities at any time, this could to help the company achieve the goals and succeed. Thus, it has also become to future goal for accountants. The implementation of XBRL will make the online system is able to work seamlessly. The advantage of using XBRL can be more effective to shorten the company reporting time also save lots of time for accountants. Technically, it contributed to the realization of continuous online report (Online Continuous Reporting). Furthermore, XBRL also help the expansion of the scope of the report, the XBRL also provides support to prompting a single general-purpose financial reporting model transform to a variety of interactive financial reporting model. Third, Using XBRL will improve utilization of financial reporting analysis. Development of XBRL to enable enterprises to be able to reduce publish time to the "zero" for the finical reports, truly reflects the high efficiency, in contrast to the regular operation, companies generally have to spend more time in order to find the data they need to analyze because there are more and more complex company structure reduce the collecting data process. It has been statistic that 1997 Cisco data collection time is 65%, and is 35% in the analysis of data, but now the time of data collection and analysis of data ratio has changed, the data collection time was 35%, while the analytical data The time is up to 65%. In fact, this time after the adoption of XBRL ratio will be further changes; accountants will have more time for data analysis and use rather than spending time on the data collecting process. It will give more benefit to the whole company’s development.

Forth, XBRL can enable Real-time monitoring and auditing continuous. Customers report information transfer faster, online continuing reports, implementation of the continuous monitoring system and track transactions and application of using XBRL will bring new pressure to auditors. The pressure also becoming the motivation to let auditor give a quality works. On the other side, credit company and credit guarantor use the XBRL monitor the performance of the borrower's credit rating. by XBRL standardization, each company is able to get real-time credit rating. The company can also use it to evaluate the performance of the trading partners. Supply chain from GE timely production system), and Dell's on-demand delivery to...
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