As it is known, XBRL is an electronic format for standardized exchange of financial information based on XML. The final product of XBRL standard is the so-called instance document, that is, the financial reporting made in XBRL format. The application of this standard covers more and more countries each year. Today, 30 countries of the world are its users in various aspects, both at the state level and at the level of commercial companies.
XBRL has many advantages, especially for investors. Firstly, XBRL reduces costs, and therefore increases the return on projects. Secondly, the efficiency increases due to faster and more accurate analysis. Thirdly, there are new opportunities with higher financial returns, as more companies are under consideration.
However, there are some difficulties in using XBRL format when preparing financial reporting. A group of American scholars conducted a study devoted to the research of the main motives that companies were guided during the introduction of XBRL into their activities and the difficulties they encountered.
The companies recognized the lack of adequate skills and advanced functions in the existing infrastructure as the main obstacles to the adoption of technological solutions (this was pointed out by 44% of companies surveyed). And 28% of companies called budget constraints among the reasons, that is, the lack of sufficient funds for the introduction of electronic reporting system. And although the standard is free of charge, the rebuilding of the internal financial accounting system and the training of staff for the use of the new format require additional funding from the company’s management.