خلاصة:
Extensible Business Reporting Language (XBRL) is an XML-based open
standard, developed specifically for financial reporting. In wider terms,
XBRL is a technology by which directed searches and simultaneous
presentation of related financial statement facilitate, and also footnote
information could potentially help financial statements’ users. The use of
search-facilitating technology depletes differences in nonprofessional
investors’ financial performance judgments and investment decisions created
by recognition versus disclosure; accordingly, it could not be wrong to
conclude that search-facilitating technology broadly improves the
transparency of firm’s financial information. Financial statements in XBRL
format bring users of financial reports the opportunity that provides them
with directly search for relevant information regardless of the information’s
location and to conveniently compare related information among different
companies. All in all, XBRL can reduce unreliability of financial
information for firms and help them to minimize the minus effect of
nondeterministic decisions based upon financial statements’ information.
ملخص الجهاز:
The use of search-facilitating technology depletes differences in nonprofessional investors' financial performance judgments and investment decisions created by recognition versus disclosure; accordingly, it could not be wrong to conclude that search-facilitating technology broadly improves the transparency of firm's financial information.
This search capability has the potential to contribute to increase the transparency of different accounting treatments, decrease users' costs of processing information, and perform as a decision aid for users by facilitating the providing related information.
For both reasons, search-facilitating technology enables financial statement users to ' Financial Accounting Standard Board make more informed decisions based upon the information contained in the report, regardless of where it is presented.
Technology that facilitates directed searches potentially alleviates cognitive processing costs and limitations that lead to differences in users' judgments and decisions between firms that choose recognition versus disclosure.
Furthermore, search-facilitating technology can overcome users' knowledge limitations by acting as a decision aid that identifies related information and presents it simultaneously, providing users with an opportunity to integrate data better and make appropriate comparisons between firms that choose recognition versus disclosure.
It is flagrant that search-facilitating technology will decrease the influence of recognition versus disclosure by making the firm's stock option compensation reporting choice more transparent and directing attention to the pro forma income statement effects of stock option compensation that is disclosed in footnotes.
Search-facilitating technology may also affect other reasons for a differential user reaction to recognition versus disclosure: specifically, reasons related to perceived financial statement reliability such as inherent differences in relevance/reliability and managers' use of disclosure to decline negative information.