XBRL: The Digital Transformation of the Business World through Language
XBRL Language: What Is It and What Are Its Advantages?
Companies are currently facing a process of digitization of processes that is essential for efficiency and transparency in the management of corporate sustainability. In this context, XBRL (Extensible Business Reporting Language) has become a very useful tool for the communication and exchange of financial and business information.
With the CSRD or Corporate Sustainability Reporting Directive, one of the cornerstones of the European Green Deal representing a significant step forward compared to the current limited sustainability reporting requirements, this language will be used for the reporting of non-financial information. In this article, we'll explore what XBRL is, how useful it is, and the benefits it offers in terms of access, compatibility, and annual account management.
What is XBRL language?
XBRL is a global markup language standard developed specifically for the presentation and sharing of financial and business reports in digital formats. It allows businesses and organizations to structure and label information in a way that is readable by both individuals and computer systems.
Usefulness of the XBRL Language
The usefulness of the XBRL language lies in its ability to transform business information into an understandable and actionable digital format. This facilitates the communication of financial and business data both within an organization and between different entities, including regulators, investors, and other stakeholders.
Advantages of the XBRL Language
1. Reporting efficiency: XBRL automates the process of preparing and submitting financial reports, allowing for a significant reduction in the time and resources required to comply with reporting requirements.
2. Improves accuracy and consistency: By standardizing the structure and terminology used in financial reporting, the XBRL language helps eliminate errors and ambiguities, thus improving the accuracy and consistency of information.
3. Improved access to information: The digital nature of the XBRL language makes it easier for all stakeholders to access financial and business information, including investors, analysts, regulators, and managers.
4. Cross-platform compatibility: XBRL supports a wide range of computer systems and platforms, making it easy to integrate with existing systems and simplifying data exchange between different entities.
5. Advanced data analytics: By structuring data in a uniform and consistent way, XBRL enables advanced analytics and extracts valuable insights from large volumes of financial and business information.
In short...
In summary, the XBRL language plays a critical role in the digital transformation of financial, business, and non-financial reporting for companies, offering improved efficiency, accessibility, and compatibility.
Companies already file their annual accounts in XBRL format.
In summary, the XBRL language aims to standardize the format of business and financial information that circulates digitally, it tries to be a single language in which data means the same thing in any language, on any computer, for anyone and extendable to all the reports that an organization must make, whether financial or non-financial reporting.
By adopting XBRL, organizations can streamline their reporting processes, improve transparency and quality of information, and provide stakeholders with easier and faster access to relevant data.
Our solution
At Qaleon we have developed SineQia® an innovative 360 platform that provides real-time tracking of KPIs and performance metrics related to corporate sustainability, compatible with the XBRL language to facilitate sustainability reporting in all areas.
With SineQia® boosts the sustainability and performance of your company at all levels through process optimization.
