XBRL: Different Approach of Utilization

The present study investigate the role of XBRL (eXtensible Business Reporting Language) as an electronic format for submitting and communicating of financial and business data in effective and efficient way. The study is analysing different approach, which has been shaped across the world. The study is focused on current situation within the European Union countries, investigating in the level of adopting XBRL taxonomy for major countries in EU, compared with situation in USA and Asia.The financial reporting is requiring quality and timelines of business information and speed of collection and formation of the information needed is crucial. The XBRL technology will aim to create a single channel of reporting from the company all the way through to the supervisory bodies without “human hands” involvement and online. Adopting XBRL enables the reporting entity report to the national supervisor only. With the nature diversity of Europe – 28 countries are members of EU, more than 60 countries in total, more than 200 languages used across the Europe – the XBRL can be unique tool to improve competitiveness of European companies within the world. In European Union, European Central Bank plays a major role, as a supervising bank for the national central banks, in establishing flexible, cost efficient and errorless reporting system. In USA, SEC requirement is (since 2009 through 2011) for all U.S. listed companies to submit their financial statements in XBRL, including IFRS files. Used taxonomy needs to be approved by SEC.