Is XBRL finally the next big thing?

[Robert Hillard]

During the 1980s I remember reading for many years in a row that networks were going to be the next big thing.  So much so, that it became easy to become cynical about their potential.  Of course, eventually they did meet their promise, and then some!  Similarly, many people (including myself) have been talking about XBRL for far too many years, but maybe, just maybe it is starting to come of age.

XBRL (or eXtensible Business Reporting Language to the uninitiated) is a standardised way of communicating business information such as financial statements, regulatory submissions and internal reports.  By using a standard language, you get all of the benefits of any information standard.  The benefits include the interoperability of software, transparency of business rules, simplicity of data aggregation and simplified analysis.  The requirement to learn a new language and the lack of supporting software has, to-date, put many businesses off.

While there have been a number of trials, including most famously the SEC in the United States, I think it is worthwhile to take a few minutes to look at the latest initiative from the Australian Government: Standard Business Reporting.  The new SBR website is slick (at least for a government site!) and explains the benefits and initiative well.  It will be exciting to see whether SBR achieves its aims to change business reporting in Australia.



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