Can someone explain what XBRL and iXBRL is ? How do businesses use it. Why is it important?

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Especially from a software standpoint. When helping companies with their financial filing

In: Technology

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Anonymous 0 Comments

XBRL is a computer-oriented language (based on XML, which is somewhat similar to HTML) used to describe business and financial data.

This allows authorities (e.g. SEC), tax filling agencies, and other entities (including private ones, like auditors) to get the information they want in a uniform way.

Because it is a computer-oriented language, it only helps with computer-based data, and is meant to be used by software which automatically analyzes data.

Also because it is a computer-oriented language, it’s very hard and messy to directly write things in XBRL, which is why some accounting software translate the human-friendly information in XBRL format.