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30 Mar 2011
CRITICISM has been levelled at international accounting standards claiming they do not fit with new technology to aid financial reporting.
The warning comes from Mike Starr, chief accountant at the SEC, the US financial watchdog, who claims International Financial Reporting Standards are too limited to use the new highlighting tool - XBRL, Reuters reports.
The technology is designed to automatically highlight key information contained in financial reports and tax filings. It allows financial information to be "tagged" with digital markers so returns can be made online in a standardised format.
However, Starr said there is still "concern about the adequacy of IFRS" information highlighted by XBRL, resulting in reports that are not standardised.
He believes the information is more limited than the US' own GAAP reporting style.
Hans Hoogervorst, incoming chairman of the International Accounting Standards Board, which works on IFRS rules, said proposals due in April will increase information that can be tagged.
"I am hopeful we can address the problems the SEC is seeing and hopefully the use of IFRS taxonomy can be allowed. A lot of these problems will be solved," Hoogervorst said.
Currently about 1,500 US companies file using XBRL with a further 8,000 to be added in June when it will become mandatory for listed companies.
The SEC has refused to allow companies filing in IFRS to use XBRL.
The UK has required all corporation tax to be submitted in a newer version of the technology, iXBRL (inline eXtensible Business Reporting Language), by 1 April 2011.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
UK perspective
The final paragraph is somewhat inaccurate and would be better as:
"The UK's HMRC requires all company accounts and tax computations for tax returns for return periods ending after 31 March 2010 and filed after 31 March 2011 to be filed online using a newer version of the technology, iXBRL (inline eXtensible Business Reporting Language).
Posted by: Tim Hervey, 30 Mar 2011 | 15:29
XBRL is the "how, not the "what"
XBRL is a format specification for “how” business information is structured; it does not define “what” gets reported. The SEC has accepted, in fact mandated, the use of XBRL as the format for US GAAP reporting. The SEC did not say IFRS does not fit with XBRL. They are not willing to accept the level of detail required by IFRS today. The XBRL representation of IFRS is not the issue.
IXBRL is not a newer XBRL. iXBRL is XBRL embedded in an HTML document.
Posted by: Tony Fragnito, 31 Mar 2011 | 12:09