2.

0 EFFECTIVENESS OF XBRL
XBRL will be used to digitally publish financial statements of companies that are issued to
external users. An XBRL-based financial statement is a digitally enhanced version of paperbased financial statements, which include the balance sheet, income statement, statement of
equity, statement of cash flows, and the notes to the financial statements as well as the
accountants report.

2.1 Effectiveness in Information Sharing

XBRL can be applied to a very wide range of business and financial data. Among
other things, it can handle company internal and external financial and business reporting. It
also help the business to exchange any information within all types of regulators, including
tax and financial authorities, central banks, and governments. The XBRL is a universally
accepted information sharing. It can be use across many countries and facilities of sharing of
business information in many languages, on any computer platform and in multiple
accounting standards.
Data coded in XBRL will become more reliable because it is derived directly from
company sources. When preparing external reports, employees can rely on internal company
data and provide valuable links to source data, calculations, and accounting standards
(XBRL). When the data is properly linked in the systems, XBRL "can reduce time spent
manually finding and preparing information and improve data quality through fully
automated information exchanges" (Willis).
The SEC said getting an early start on XBRL reporting can help companies reduce
the need for repetitive data entry, reduce the likelihood of human error and help them have
one less problem to worry about later on (Morgan, 2009, p. 9). According to Fang (2009, p.
71), the elimination of the manual rekeying process does not only improve data migration
efficiency, but also data accuracy which is even more important. This can reduce the cost of
information collection analysis and dissemination, while substantially improving the accuracy
and quality of the data.

2.2 Effectiveness in Preparing Financial Statement

XBRL solves two significant problems through efficient preparation of financial statements
in many forms and reliable extraction of specific detailed information from the different
forms of financial statements.
The first problem is that preparing a financial statement for printing, for a Web site,
and for filing today means that a company could typically enter information three times. With
XBRL, information will be entered once and the same information will be rendered as a
printed financial statement, an HTML document for a Web site, an EDGAR filing file, a raw
XML file, or a specialized reporting format such as periodic banking and other regulatory
reports.
The second problem is that today, extracting specified detailed information from a
financial statement, even an electronic financial statement like an EDGAR filing, is a manual
process. For example, a company cannot tell a computer program to Get the depreciation
expense for 1999 from an electronic financial statement. If a financial statement is prepared
using XBRL, computer programs can easily extract every piece of information in that
statement. This also includes Web browsers on the Internet.

2.3 Effectiveness in Decision Making Process

A number of groups are likely to benefit from XBRL including the organization itself,
accountants, auditors, regulator, investor, analysts, and other third party user. Supporters
believe XBRL offers major benefits at all stages of business reporting and analysis. Anyone
who collects business data and uses it to make decisions can benefit from XBRL.
Firstly, the organization itself can benefit internally through automating processes
and streamlining the flow of information. XBRL help them a solution that allow companies
flow internal reporting to external reporting. This may increases transparency and reduces
errors. Employees within the organization will benefit from the reduction of repetitive
manual data-entry, and managers will be able to make better decisions with more accurate
information in order to increase the organizations profit.

Secondly, accountants and auditors also earn many benefits from XBRL in their
decision making process. "Standardizing information formats would help CPAs gather,
manage, and report information more quickly, efficiently, and accurately" (Willis). This helps
accountant to make effective decision in managing the organizations finance. Meanwhile,
XBRL give auditor opportunity and benefit by improves audits with tagged data. Some
auditors are already using XBRL coded data for efficient and effective analysis of their
clients company data, enabling audits to be performed faster, more accurately and at a lower
cost
Next, for the investor, analysts, and other third party user, XBRL will make their
job easier in analysing companies financial information. By using XBRL, the third party can
get information directly from the company that they are analysing. XBRL lets users see the
true financial position of the company, not a normalized version used for publication. XBRL
facilitates comparisons of the results from multiple companies, side-by-side, without having
to extract this information from each filing, or can support inter-period comparisons for
single company or multiple companies (Williams & Cannon). This may lead them to make
correct and effective decision.
The regulators have the responsibility to ensure that the market works efficient,
providing rules, guidelines and ask companies to be compliant to several guidelines.
Especially during the financial crisis transparency is more important, so regulators should
encourage companies to publish relevant information in order to make all actors in the market
trust each other. The technology not only enhanced transparency and reduced the filing
burden, but it also improved the exchange of information with the central bank and statistics
agency (Graziano).
.

Referens:

Dreyer, Christian, and Mike Willis. "XBRL." Professional Investor September (2006):11-16.
Morgan, J. (2009). Companies Prepare For XBRL Rules. Money Management Executive,
17(10), 2.
Fang, J. (2009). How CPAs Can Master XBRL. THE CPA JOURNAL, MAY 2009, 2.
Williams, H. J., & Cannon, D. (2009). The language of business: gone digital! Grand Rapids
Business Journal, 27(13), 32
Graziano, C. d. M. (2002). XBRL. Streamlining Financial Reporting. FINANCIAL
EXECUTIVE,
18(8), 55.
Willis, Mike. "XBRL and Data Standardization: Transforming the Way CPAs Work." Journal
of Accountancy 199.3 (2005): 80-81.