XBRL (eXtensible Business Reporting Language)

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eXtensible Business Reporting Language (XBRL)

eXtensible Business Reporting Language (XBRL) is a freely available, global software standard for exchanging business and financial information. Built on XML (extensible markup language), XBRL uses standardized tags to identify individual pieces of financial data so they can be read and processed automatically by XBRL-compatible programs.

How it works

  • Each financial data element (for example, an account name or a numeric value) is assigned an XBRL tag that describes its meaning and context.
  • Tagged data can be extracted programmatically and converted into spreadsheets or analytics tools without manual re-entry.
  • iXBRL (inline XBRL) embeds XBRL metadata directly within an HTML document, allowing the same document to be viewed by humans and processed by machines.

Benefits

  • Faster, more accurate compilation and sharing of financial data.
  • Easier aggregation and comparison across companies and jurisdictions because tags convey meaning consistently.
  • Enables automated analysis, regulatory review, and integration with other systems.
  • Facilitates conversion between different accounting frameworks because the tagged semantics are explicit.

Versions and extensibility

  • XBRL was first developed in 1998 (version 1.0) by the American Institute of Certified Public Accountants (AICPA).
  • The current core standard, version 2.1, was formalized in 2003 and has remained stable since then.
  • A modular approach lets optional XBRL modules be added to provide new functionality or interoperability.

Adoption and outlook

  • Reporting in XBRL is not yet universal, but its prevalence has grown and it is increasingly used by companies, analysts, and regulators.
  • Because XBRL standardizes how financial information is described and exchanged, wider adoption supports more efficient, machine-readable reporting.

Key takeaways

  • XBRL is a standardized, XML-based framework for exchanging business information.
  • It uses tags to make financial data machine-readable and easily transferable.
  • The core standard (v2.1) was published in 2003; additional modules extend its capabilities.
  • iXBRL embeds XBRL metadata in HTML to serve both human and machine users.

XBRL streamlines financial reporting by making data explicit, interoperable, and ready for automated processing.