CPAs and is in charge of the litigation support and forensic accounting practice. There is a tremendous opportunity for firms that take the lead in XBRL fluency, whether in attracting new business or educating clients and other firms on the requirements within a consulting role.
And in this period of transition, accuracy and compliance have become more critical than ever. Now comes a powerful new form of data, one that speaks the language of business. Register for Live Webcast An Accounting Perspective A blockchain is akin to journal entries in original books and records.
Equivalently, the configuration of a blockchain system is not yet a mature, error-free, or frictionless process. More than 9, companies are now required by the SEC to submit quarterly XBRL files that include tagged financial statements, as well as detailed data in footnotes.
Educators and researchers also have their work cut out for them; once investment in new underlying databases is under way, researchers will find plenty of practical applications to be addressed. Such redundancy, with a single point of entry and multiple points of disposition and resolution, can also create efficiencies for trading parties.
First, the risk of misconfiguration when implementing abstract, generic, redundant databases is not trivial. In expanding the blockchain for an audit trail, the dividend payment system in the example above could facilitate an end-to-end trusted journal containing the trusted ledgers of everyone who actually received a payment.
Software in general, and user access in particular, can easily become poorly configured see Vincent C. Of course, on an individual level, XBRL is more than a component of financial reporting.
Other Implementation Risks There are risks to blockchain other than the above-mentioned risk of a single person controlling an entire system. Blocks in a blockchain, in addition to containing required data, can carry additional audit trail and analysis data, such as the total of the affected accounts before and after the transaction.
With more than 20, tags related to the taxonomy, there is an enormous volume of data to handle and an even bigger responsibility to get the content right.
Although this practical limit has not been reached—yet—there is no assurance that it cannot happen. XBRL also has the potential to help investors, financials aggregators, governments, the SEC and other federal agencies find relevant needles of insight in gargantuan haystacks of financial data — in a matter of minutes.
Larger, diverse entities are the ideal subjects for such adoption and evolution, being able to spend greater resources on such systems. Besides the built-in features for prevention and detection of fraud, as well as the benefits to the audit trail, the underlying database provides redundancy in reporting and efficiencies in populating data.
While the concept of a high-fidelity journal is an idea as old as double-entry bookkeeping, new technology means dramatic changes for the CPA of tomorrow. Even if one block in one database is deleted, the other databases will synchronize themselves, correcting the damaged database and undoing the deletion.
Tablet image via Shutterstock. This is a well-documented risk; even well designed information systems can experience a breakdown when user access controls are poorly configured.
Because the exchange of information can be done in standardized, public domain format [for example, Extensible Markup Language XML ], there is a higher level of fidelity between the single, majority rule concertation of ledgers.
Although such a data set can be maintained by a single, centralized database that controls the entire stock ownership for a single listed company, the multiple sibling databases of blockchain create a more robust audit trail.This page enables you to download bulk data in either Excel compatible or XBRL format.
Please note that certain products are only available in a single format. Reporting Period End Date or Year eXtensible Business Reporting Language (XBRL).
The business reporting standard. A global community committed to improving reporting everywhere. News. AICPA Findings Reveal 45% Drop in XBRL Costs for Small Companies.
As reported in July, it was great news to hear that the cost of XBRL formatting for small US. LiqTech uses XBRL Files (eXtensible Business Reporting Language) as an global standard for digitalization and exchanging business information - take a look.
XBRL beyond Regulatory Compliance. XBRL (eXtensible Business Reporting Language) is an open technology standard for business reporting. XBRL has been adopted for compliance reporting by many financial regulators worldwide. XML is a mature communication and exchange technology, as are Extensible Business Reporting Language (XBRL) and other standard protocols for data exchange.
Blockchain, however, may test the limit of data integrity, as it is exchanged and synchronized between. XBRL, short for eXtensible Business Reporting Language, enables the standardization of data for key stakeholders and investors.
The quality of your data is critical, as is selecting the right service provider.Download