What are the key differences between XBRL and IFRS?

What are the key differences between XBRL and IFRS?

XBRL (eXtensible Business Reporting Language) is a format for digital business reporting, while IFRS (International Financial Reporting Standards) are accounting standards for financial reporting. XBRL is used to tag financial data for easier analysis and sharing, whereas IFRS provides the guidelines for how that data should be prepared.

Can you explain how XBRL enhances financial reporting?

Certainly! XBRL enhances financial reporting by allowing for automated data extraction, improving accuracy, and enabling real-time analysis. It makes it easier for stakeholders to access and compare financial information across different companies.

Are there any challenges associated with implementing XBRL?

Yes, some challenges include the initial cost of implementation, the need for training staff, and ensuring data quality. Organizations may also face difficulties in integrating XBRL with existing systems.

How does IFRS influence the use of XBRL?

IFRS influences XBRL by providing the framework and standards that need to be reported. XBRL tags are often aligned with IFRS requirements, ensuring that the financial data reported is compliant with international standards.

What resources are available for learning more about XBRL and IFRS?

There are many resources available, including the official IFRS website, XBRL International, and various online courses and webinars that cover both topics in detail.