What is XBRL?
XBRL - eXtensible Business Reporting Language - is an XML-based standard, initially developed in the United States in 2002. The purpose and aim of XBRL is to provide organizations with a standard financial information reporting standard.
What challenges does XBRL address? Why is XBRL important?
In today's business world, each organization reports its financial information according to a specific internal model and terminology. What one company reports as "Quarterly Result", another one reports as "Net Result", another one as "Result After Tax".
The same company, when operating in different countries and jurisdictions, reports its financial information in different languages and models. Reading this data, and consolidating it, becomes complex, manual and subject to interpretation. In this context, XBRL provides a framework to standardize enterprise financial reporting.
By reporting their financial information using XBRL, companies will leverage the following benefits:
Reporting concepts become common and shared between differents companies belonging to the same group;
Consolidating reports from different companies is vastly simplified and ambiguities are removed;
Comparing financial reports from different companies in real time becomes possible.
Why is BI4ALL entering the XBRL space? What are the opportunities?
XBRL adoption by government agencies and private businesses is becoming standard. In tightly regulated industries - banking and insurance for example - reporting of regulatory and prudential information, in XBRL format, to national and international regulators is already a reality.
This process has been accelerated by influence of the European Banking Association (EBA) and European Insurance and Occupational Pensions Authority (EIOPA) in the light of reinforced integration of the European financial sector companies.
BI4ALL's proposition value in the XBRL space is to leverage the existing decision support systems, to deliver financial information reports in XBRL format. The Capital Requirements and Solvency II directives are driving the adoption of XBRL reporting solutions in Portugal and Europe, replacing the current Excel-based solutions adopted by most businesses.
Soon the current format will be unusable, and BI4ALL is uniquely positioned to deliver business information reporting solutions based on the new format, through its deep expertise in Data Warehouse and Reporting subject matters.
What is BI4ALL's current technological offer for XBRL reporting?
Currently BI4ALL offers IBM Cognos Disclosure Management as the tool of choice for financial reporting in XBRL format. IBM CDM is an MS Office add-in that connects all major data providers to an Office reporting environment dynamically, as well as providing the option to dynamically export to CDM.
BI4ALL is also partnering with other software vendors with the purpose of offering its clients further choice of tools.