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XBRL John Ozment, director of special projects and analysis for Ozment’s Corporation, is responsible for preparing corporate financial analyses and monthly statements and for reviewing and presenting the financial impacts of proposed strategies to upper management. Data for such financial analyses are obtained from operations and financial databases through direct queries of Ozment’s department staff. Reports and charts for presentations are then prepared by hand and typed. Multiple copies are prepared and distributed to various users. The pressure on Ozment’s group has intensified as demand for more and more current information increases. A solution to this reporting problem must be found. The systems department wants to develop a proprietary software package to produce the reports automatically. The project would require the company to make a considerable programming investment. Ozment is concerned about the accuracy, completeness, and currency of data in automatically produced reports. He has heard about a reporting system called XBRL and wonders whether a new system based on this technology would not be more effective and reliable. Required a. Research the current state of XBRL and determine if this technology is appropriate for internal reporting projects such as this. b. Identify the enhancements to current information and reporting that the company could realize by using XBRL. c. Discuss any data integrity, internal control, and reporting concerns associated with XBRL.
Accounting Information Systems
Solutions
Accounting Information Systems
XBRL
John Ozment, director of special projects and analysis for Ozment’s Corporation, is responsible for preparing corporate financial analyses and monthly
statements and for reviewing and presenting the financial impacts of proposed strategies to upper management. Data for such financial analyses are obtained from operations and financial databases through direct queries of Ozment’s department staff. Reports and charts for presentations are then prepared by hand and typed. Multiple copies are prepared and distributed to various users. The pressure on Ozment’s group has intensified as demand for more and more current information increases. A solution to this reporting problem must be found.
The systems department wants to develop a proprietary software package to produce the reports automatically. The project would require the company to make a considerable programming investment. Ozment is concerned about the accuracy, completeness, and currency of data in automatically produced reports. He has heard about a reporting system called XBRL and wonders whether a new system based on this technology would not be more effective and reliable.
Required
- a. Research the current state of XBRL and determine if this technology is appropriate for internal reporting projects such as this.
- b. Identify the enhancements to current information and reporting that the company could realize by using XBRL.
- c. Discuss any data integrity, internal control, and reporting concerns associated with XBRL.
a.
Describe the current state of XBRL and determine if this technology is appropriate for internal reporting projects of corporation O.
Explanation of Solution
Extensible Business Reporting Language (XBRL):
The extensible business reporting language (XBRL) is language based on extensible markup language (XML). The XML is the metalanguage used to define the markup languages The XBRL is used for reporting and exchanging information of organization with the external users.
The current state of XBRL is as follows:
- The XBRL is known by the financial world community. The XBRL is emerging as an important tool for financial reporting activities.
- The usage of XBRL by the external users of organization is substantially increasing all over the world...
b.
Recognize the enhancements to current information and reporting that the company could realize by using XBRL.
c.
Explain any data integrity, internal control, and reporting concerns associated with XBRL.
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