Friday, November 12, 2010

XBRL is expanding globally

NEW YORK, NY, NOVEMBER 9, 2010The release of a national General Purpose XBRL Taxonomy by the China Ministry of Finance last month during XBRL21 mandates XBRL across banking, insurance, capital markets, taxation and audit in China. This represents the largest scale integration of the standard to date in the world, building upon a steadily increasing series of regulatory requirements to use XBRL in Japan, U.S., Australia, U.K., many EU member states and others for tax, annual accounts, corporate financials, mutual funds and standard business reporting.

“Governments and tax authorities are increasingly recognizing the power and value of XBRL in
Streamlining the gathering of information from the public and businesses and sharing that information across agencies efficiently and cost-effectively,” said Anthony Fragnito, CPA, CEO of XBRL International, Inc. “The reduced burden on governments using XBRL is substantial, as we have seen with the SBR programs in Australia and the Netherlands. Ireland’s Revenue Commission recently announced that it is planning to use XBRL for tax reporting; The U.K. HMRC requirement for tax reporting using the inline XBRL standard goes into effect next April; Germany, Denmark and other countries are also using XBRL for tax reporting. In total, millions of listed and privately held companies are using XBRL today for tax reporting. Look beyond that to XBRL requirements for listed companies, and the market is now seeing financial information in XBRL format from companies representing more than 75% of the world’s total market capitalization.”

An XBRL taxonomy developed by SWIFT, DTCC and XBRL U.S. for corporate actions was also presented during XBRL21 and is projected to save more than $900 million for organizations reporting and receiving billions of corporate actions transactions annually in the U.S. alone. “I expect to see increasing interest from other countries in the use of XBRL for corporate actions given the projected cost-savings, the improvement in accuracy, and the efficiency in analyzing important corporate communications to investors,” added Mr. Fragnito.

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