XBRL and Corporate Reporting
How Will XBRL Impact Corporate Reporting?
Potential Benefits to Corporate Stakeholders
Pressure is not a new concept to the board and management of any company. And the burden is substantially increased by a poor economic climate coupled with ever-increasing demand for financial reporting that not only demonstrates data integrity but also provides transparent and usable information.
Digital reporting, and XBRL in particular, cannot relieve all the resulting stress, but it is already demonstrating the potential to deliver benefits to many of the producers and users of business information. To understand this potential, consider demands that come from two directions.
Stakeholders
All corporate stakeholders will be affected in different ways by the introduction of digital reporting. Some effects are generic, such as the potential for real-time reporting and the ability to make comparisons, aggregate or consolidate, extrapolate trends, or simply analyze for exceptions and differentiators. Others, which may well represent the real drivers in the short term, provide solutions or partial solutions to issues specific to particular groups of stakeholders. Click on the links in the graphic to explore these stakeholders more closely.
Internal Drivers
Many other pressures faced by companies today
come from inside the organization. Some areas in which digital
reporting can make a substantial impact are included in the lower
portion of the graphic. Click on the links in the graphic to explore
them more closely.
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