WatkinsCarol - AC550 Assignment Unit 6

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Unit Six Assignment Carol Watkins Purdue Global GB550 Doctor Letsch March 26, 2024
Anderson Manufacturing (XBRL – Enabled Software) – Case Analysis 1. What does it mean when software is “XBRL-enabled?” XBRL stands for eXtensible Business Reporting Language. XBRL uses standardized tags to solve problems. These tags describe financial and business information ( Simkin et al., 2018, p.32). XBRL-enabled means that the software has the capability to understand, process and generate XBRL data. 2. Identify at least five advantages that KA might discuss with the company regarding an XBRL-enabled software solution. Identify any disadvantages that might also be relevant for AMC. Advantages a) Standardization: Using XBRL-enabled software would enable standardized tags or formats across each department using financial data. It will also make it easier to analyze data and ensure there is continuity across different systems. b) Improved Accuracy: With XBRL-enabled software, it uses tags for different items. This software learns as more tags are created. This reduces errors and enhances the reliability of financial reporting. c) Enhanced Transparency: XBRL can give a very detailed report. Breaking down sections thoroughly. This will allow outside stakeholders to understand this information by themselves. d) Regulatory Compliance: Using XBRL software is mandated for reporting financial data. Therefore, using XBRL will maintain the company’s compliance for financial reporting. e) Streamlined Reporting: XBRL automates the data that is collected through validation and transforming. Therefore, makes a seamless financial report from the data collected. Disadvantages a) Cost of Investment: When integrating new software, a company may experience up-front costs for the software. Additionally, there will be down time to integrate the software and may take a few working days away from normal operations. b) Educating Employees: As with any new software, employees will need additional training with the new software. Therefore, the company may need to hire support to ensure the employees receive a good understanding of the XBRL software before fully implementing. 3. Assume that you are KA’s research assistant. Draft a memo to AMC that explains how XBRL works. Remember to keep in mind your audience. This should be an executive-level piece of correspondence.
TO: AMC Executives FROM: Carol Watkins, KA Research Assistant DATE: March 26, 2024 SUBJECT: What is XBRL and How it Works Good afternoon AMC Executives. I hope this memo finds you well. As per KA’s request, I am reaching out to provide you with an overview of XBRL (eXtensible Business Reporting Language) and how it functions. XBRL is the acronym for eXtensible Business Reporting Language. This software uses standardized language for business and financial data. XBRL electronically enables the transmission of financial information in a readable format. This allows for easy analysis, comparison, and reporting of data across many platforms. Here are some key points regarding how XBRL works: 1. Standardization: Using XBRL-enabled software would enable standardized tags or formats across each department using financial data. It will also make it easier to analyze data and ensure there is continuity across different systems. 2. Improved Accuracy: With XBRL-enabled software, it uses tags for different items. This software learns as more tags are created. This reduces errors and enhances the reliability of financial reporting. 3. Enhanced Transparency: XBRL can give a very detailed report. Breaking down sections thoroughly. This will allow outside stakeholders to understand this information by themselves. 4. Regulatory Compliance: Using XBRL software is mandated for reporting financial data. Therefore, using XBRL will maintain the company’s compliance for financial reporting. 5. Streamlined Reporting: XBRL automates the data that is collected through validation and transforming. Therefore, makes a seamless financial report from the data collected. In summary, XBRL streamlines the process of reporting and analyzing financial data by providing standardized language. Its adaptation leads to increased transparency, efficiency, and accuracy for financial reporting. Benefiting both the company and stakeholders. If you have any further questions regarding XBRL, please do not hesitate to reach out. You can reach me at 123-456-7890 or cwatkins@kuechlerassistant.com. Thank you for your time.
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