Improving Governance with XBRL
How will XBRL impact corporate governance?
THE ISSUE: INTERNAL TRANSPARENCY
For today’s enterprise, the issue of understanding report consolidation
and the controls that exist around those reports is a critical part of corporate governance. In addition to building a corporate culture of accountability and accuracy, there is a very real need to re-examine the manner in which information is produced, verified, and disclosed.
A FUTURE PERSPECTIVE
KPMG member firms continues to work on new ways to improve information transparency, from examining the accuracy, utility, and relevance of key performance measures to reviewing and improving controls that exist around reporting processes.
We believe that for many enterprises the use
of XBRL technology will prove the most suitable,
platform-independent way to impose rigor on the framework of
reporting.
Leading organizations will use XBRL taxonomies to define
information, account owners, and review points as well as the
formulae used to check the reasonableness of information sets. Those
same organizations will use XBRL instance documents to give life to
the rules that define the information flow, providing new levels of
certainty around corporate data. This framework, independent of
particular vendors but applied to every system in use, will provide
a vehicle for greater levels of control and greater levels of
insight into information management in the modern enterprise.
TODAY
The use of XBRL for corporate governance is an active research effort. Contact us
for more information.
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