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XBRL – A New Way to Spell IT and Business Alignment

The Opportunity

It can be difficult for a CIO or CTO to bring the IT department into alignment with the rest. I have some good news: XBRL is a new opportunity that looks promising. Last year, the Security and Exchanges Commission made it mandatory to add the XBRL reporting tag to a company’s 10-Q and 10F financial filings.

CIOs now have a lot of opportunities. The SEC has accepted a limited liability agreement for the next three years. Everyone needs to do their best. Check out this site for more information related to XBRL conversion.

What is The XBRL?

Extended business reporting language (XBRL), a set of custom XML tags, is what firms will need to begin to add to their financial records. This is to make it easier to find the information the SEC and financial analysts are searching for (and to be able to compare it with other firms).

According to the SEC, large companies must start using it. All public companies will need to use it over the next three years. This is a crucial task and the IT department excels at this type of work. XBRL is a collection of interactive data tags which will enable financial analysts to better analyze a company's financial figures.

These tags can be placed in certain areas of the filing. Next year, however, detailed tags will be required to be added to the footnotes and MD&A sections of an annual report.