With increased interest in financial reporting “transparency” and the availability of advanced information technology tools, there is a greater focus now on supplying more information on a timely basis to external stakeholders. While the format in which this information needs to be supplied is evolving, there is an increasing need for information to be available in electronic formats.
Business reporting information supplied by one organization is often used as input for the processes of another organization. This process is often referred to as the information supply chain. The financial and business reporting information supply chain (see Figure 3) is a model that describes the information disclosure process, from the start of the transaction within the primary and support processes, to the use of reporting information by stakeholders. Given the changing demand for reporting information and the increasing opportunities in the field of information technology, the existing information supply chain should change substantially as a result of XBRL.
For example, in the “external” part of the information supply chain, once a company has published information, stakeholders, such as analysts and lenders, can use the information to form a picture of business performance during that reporting period. Depending on the interests of the stakeholders, the data supplied can be filtered and analyzed to obtain the desired information. As a result, analysts and lenders should spend less time on processing data and be able to invest more time in detailed and meaningful analyses through XBRL
With increased interest in financial reporting “transparency” and the availability of advanced information technology tools, there is a greater focus now on supplying more information on a timely basis to external stakeholders. While the format in which this information needs to be supplied is evolving, there is an increasing need for information to be available in electronic formats. Business reporting information supplied by one organization is often used as input for the processes of another organization. This process is often referred to as the information supply chain. The financial and business reporting information supply chain (see Figure 3) is a model that describes the information disclosure process, from the start of the transaction within the primary and support processes, to the use of reporting information by stakeholders. Given the changing demand for reporting information and the increasing opportunities in the field of information technology, the existing information supply chain should change substantially as a result of XBRL. For example, in the “external” part of the information supply chain, once a company has published information, stakeholders, such as analysts and lenders, can use the information to form a picture of business performance during that reporting period. Depending on the interests of the stakeholders, the data supplied can be filtered and analyzed to obtain the desired information. As a result, analysts and lenders should spend less time on processing data and be able to invest more time in detailed and meaningful analyses through XBRL
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