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 Pact that represents a significant advance compared to the current limited sustainability reporting requirements, this language will be used for the reporting of non-financial information. In this article, we will explore what XBRL is, its usefulness as well as the advantages it offers in terms of access, compatibility and management of annual accounts.
What is XBRL language?
XBRL is a global tagging language standard developed specifically for the presentation and exchange of financial and business reports in digital formats. It enables companies and organizations to structure and tag information in a way that is readable by both people and computer systems.
Usefulness of the XBRL Language
The utility 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 financial reporting and preparation process, enabling significant reductions in the time and resources needed to comply with reporting requirements.
Improves accuracy and consistency: By standardizing the structure and terminology used in financial reporting, XBRL 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 facilitates access to financial and business information for all stakeholders, including investors, analysts, regulators and managers.
4. Compatibility with different platforms: XBRL is compatible with a wide range of IT systems and platforms, facilitating integration with existing systems and simplifying data exchange between different entities.
5. Advanced data analysis: By structuring data in a uniform and consistent manner, XBRL enables you to perform advanced analytics and extract valuable insights from large volumes of financial and business information.
In short...
In summary, the XBRL language plays a key role in the digital transformation of financial, business and non-financial reporting for companies, offering improved efficiency, accessibility and compatibility.
Companies already present 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 aims to be a single language in which the data means the same in any language, on any computer, for any person and extensible to all reports that must be made by an organization, whether financial or non-financial reports.
By adopting XBRL, organizations can streamline their reporting processes, improve transparency and information quality, 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.