eXtensible Business Reporting Language (XBRL) is being adopted worldwide at an increasing pace. Major financial regulators, governments and an increasing number of major corporate companies are using it as the standard for electronic financial reporting and compliance.
XBRL allows different computer systems to automatically recognise and process financial information. It automates the flow and sharing of financial information across the entire reporting chain. The use of XBRL accelerates cycle times, slashes the costs of financial reporting and compliance and opens up a new world of financial and management reporting and collaboration across the reporting chain.
With the adoption of XBRL currently being driven by regulatory action and response to mandates, Deloitte believes that the language will evolve beyond compliance applications to more value-based uses. We see potential for clients to use XBRL to drive efficiencies and innovation in internal applications, such as business-process improvement, finance transformation, governance, risk and compliance systems, adoption of international financial reporting standards, and automated internal-controls reporting.
XBRL for regulatory reporting
Deloitte also provides assistance to clients on the use of XBRL for regulatory reporting as well as applications beyond compliance. Our expertise covers the broad scope of XBRL-related aspects of the reporting process, from both an IT and organisational perspective and a regulatory and compliance perspective, including:
XBRL training, readiness assessment and implementation
Deloitte provides XBRL education services to both executive/board and finance team levels. Deloitte offers a full curriculum of XBRL training modules to assist clients in their XBRL educational needs, from awareness to technical training. In readiness assessments, our approach evaluates the potential impacts of XBRL on your external reporting process as well as identifying benefits in areas such as financial processes, data integration and internal reporting.
XBRL data integration, analytics and business-process improvement
Deloitte supports clients in driving forward the use of transparency and data quality in clients' systems by using XBRL. In this way, XBRL becomes the catalyst for innovation in business-process improvement and/or finance transformation efforts.
We provide counsel on how XBRL can be leveraged to bring data together from disparate sources for business reporting, business intelligence and consolidations.
Although mandates do not currently require additional data-analysis procedures for assurance services, or tagging data at a transactional level, Deloitte has the capabilities to support clients in analytical services related to audit services (e.g., journal entry testing procedures), advanced analytics and benchmarking.
Governance, risk and compliance (GRC) and external audit services
There are several areas within GRC where XBRL provides benefits, from creating a standard taxonomy for controls to providing a framework for controls monitoring. Leveraging XBRL to facilitate controls and risk monitoring eliminates the need for spreadsheets and other point solutions and increase the effectiveness and efficiency of those processes.
Even though assurance requirements have not been outlined by the SEC, PCAOB and other regulators, a certain level of assurance on XBRL-formatted financial statements is expected to be increasingly required, especially as investors and other consumers of XBRL data have come to rely on its accuracy and the soundness of the processes involved in its creation.
Deloitte, your global XBRL implementation partner
As XBRL is a global development, Deloitte has bundled its knowledge and experience on the subject into a global team with representatives from many Deloitte practices around the world. This approach has resulted in a well-informed and extensive network of XBRL experts who continuously exchange lessons learned and best practices. In this way Deloitte can support clients with the most up-to-date approaches to XBRL implementation.
Click here to read an exclusive FDE interview with Dave van den Ende, director at Deloitte Consulting, and Wim Scheper, partner at Deloitte and professor at Utrecht University.