From the 14th International XBRL Conference, Cartesis, the world's leading specialist in finance and performance management software, together with Perception Partners, announced the findings of a new report on eXtensible Business Reporting Language (XBRL) entitled, "New Format and Technology Drives Enhanced Business Reporting." The report concludes that beyond expected investor benefits, XBRL provides strategic internal and external advantages to early adopters who integrate third party data with performance management applications.

The conference will bring industry leaders including Securities and Exchange Commission (SEC) Chairman Christopher Cox and International Accounting standards Board Chairman Sir David Tweedie together with XBRL users from the accounting, financial services, publishing, analysts, software, and technology sectors to discuss the development and use of interactive data, or XBRL, to accelerate their business reporting and financial information integration needs.

"The most common misconception about XBRL adoption is the perception of low benefit-high cost for the registrant," says Crispin Read, CMO, at Cartesis. "The real question is: Can you afford to be behind the curve? Companies that don't embrace XBRL will sacrifice the ability to leverage external data and easily calculate growth trends, drivers and metrics and run a wide range of simulations, including M&A scenario analysis, to help their organizations improve business performance and optimize the financial forecast process."

Today's business arena requires participants to be more complete and transparent in the reporting of their business and financial performance in order to meet the needs of investors, shareholders and regulators. Financial and business reporting requires a mix of speed, accuracy and flexibility, and XBRL acts like the "bar code" for financial information, enabling corporations to prepare information quickly, publish it in a variety of formats, tag it for structure and context and make it available for a variety of systems and applications.

"As one of the biggest supporters of XBRL, Chairman Cox firmly believes in the power of this global open source-driven framework and has coined the phrase 'interactive data' to describe the impact XBRL has on enhanced business reporting," says Liv Watson, co-author of the report, vice-chair of XBRL U.S. and VP of global strategy at EDGAR Online. "XBRL serves not only the interests of investors and regulatory bodies but also provides significant business benefits to participating companies."

The report predicts that the application to pure financial reporting is only the beginning since XBRL provides the perfect technological fit to support the growing trend towards more Enhanced Business Reporting (EBR). EBR includes the reporting of more non-financial business value drivers and the increased use of narrative in reporting.

"Together, XBRL, Enhanced Business Reporting and Performance Management Applications provide a solution capable of improving the business reporting supply chain, which enables the company to create value for shareholders and other stakeholders," says Robert Eccles, co-author of the report and managing director at Perception Partners. "Benchmarking financial information gives companies a sense of where they need to improve vis-à-vis competitors and the information that forms the basis of Enhanced Business Reporting gives them insights into what improvements they need to make on the value drivers that determine future financial performance. "

The report states that combined with performance management software, XBRL delivers actionable data that helps organizations:

  • Identify internal areas for improvement
  • Leverage external benchmarking for competitive analysis
  • Allow for a wide range of simulations, including M&A scenario analysis
  • Enhance reportable data
  • Provide unified reporting in a single environment to increase data accuracy and keep maintenance costs down

The entire "New Format and New Technology Drives Enhanced Business Reporting" report can be accessed at www.cartesis.com/ebr.

Register or login for access to this item and much more

All Information Management content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access