The Implications of XBRL for Financial Reporting
In 2000 XBRL became part of accounting terminology. An ambitious project to generate a public domain XBRL resource has attracted the support of the accounting standard setters in all leading jurisdictions as well the support of regulators, leading software houses and professionals.1 Much has been promised and there is an ongoing debate on just how it will change financial reporting. In the XBRL discussions to date little reference has been made to the literature on information dissemination, particularly as it relates to efficient markets, earnings management and the voluntary disclosure of financial information. In this respect the debate is incomplete and somewhat naive. If what we know about the incentives managers face is factored into the debate some of the claims about XBRL appear exaggerated.
KeywordsSupply Chain Cash Flow Financial Reporting Earning Management Stock Prex
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