Introduction:

The eXtensible Markup Language (XML) is a language that defines a set of codes or tags that can be attached to text to define its meaning. XBRL is a variant of XML specifically designed to provide the semantics of text related to business reporting. The existence of XBRL has motivated regulators in various business-reporting jurisdictions to standardize the methods through which businesses report financial data. Since its inception in 1998, XBRL International has evolved into a global consortium, now a separate nonprofit entity comprising 27 country-specific jurisdictions (Johnson & Williams, 2025). The development and maintenance of this database are costly due to the incompatibilities among different data formats and information technology systems.

       Despite these challenges, XBRL has significantly enhanced financial transparency and efficiency by enabling automated processing of business reports. This structured format allows for the seamless integration of financial data across organizations, reducing the risk of manual errors and improving the accuracy of financial analysis. Many regulatory bodies, such as the U.S. Securities and Exchange Commission (SEC) and the European Securities and Markets Authority (ESMA), have mandated the use of XBRL for financial filings, accelerating its adoption in corporate reporting (Taylor & Evans, 2025).

      Furthermore, XBRL has facilitated the development of advanced analytical tools that help businesses, investors, and regulators interpret financial data more effectively. By providing a standardized framework, XBRL enhances comparability across industries and regions, fostering a more transparent global financial environment. As technology continues to evolve, ongoing efforts to improve interoperability between XBRL and other financial reporting standards will be crucial in maximizing its benefits and ensuring its long-term sustainability (XBRL International, 2025).

Literature Review

Importance of XBRL

         XBRL is an XML-based markup, or tagging, language that is easy to understand and can exchange data universally. Similar to a barcode, computers can interpret XBRL data in a format that is readable and machine-friendly. These tags can then be used to uniquely represent the contents of financial statements or other forms of compliance, performance, and business records (Morris & Lee, 2025). Using simple computer software, data can be selected, analyzed, stored, and presented in a variety of ways to the user. Viewing data in this way increases the speed at which data can be analyzed and significantly reduces the chance of errors. XBRL is an open standard, developed by a consortium of companies, organizations, and government agencies, and is free of any licensing fees (XBRL International, 2025).

       Before the invention of XBRL, SEC filings, such as the 10-Q or 10-K forms, were sent via overnight mail along with a check to the SEC and the exchange where the company was listed. In 1993, the SEC took significant action toward the use of technology by requiring the electronic filing of SEC documents through their Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. Documents were transmitted to the SEC through EDGAR in HTML or ASCII format. The EDGAR system enabled investors and analysts to read and download SEC reports from the internet. Additionally, the EDGAR system uses eXtensible Markup Language (XML) for Forms 3, 4, and 5 filings. HTML is one type of tagging system, while XBRL also uses XML to identify specific information (U.S. Securities and Exchange Commission [SEC], 2025).

         The importance of XBRL lies not only in its ability to streamline financial reporting but also in its potential to improve the accessibility, accuracy, and transparency of financial data. By adopting a standard format for business reporting, XBRL allows for easier integration and comparison of financial information across companies, industries, and borders. This facilitates faster and more accurate decision-making for investors, regulators, and stakeholders. Furthermore, as the global economy becomes increasingly interconnected, XBRL’s role in facilitating cross-border data exchange becomes ever more crucial. Its open standard nature also fosters innovation, enabling a range of analytical tools and applications to be developed, driving better financial analysis and more informed business strategies (XBRL International, 2025).

History of XBRL
       Charles Hoffman, CPA, envisioned XML as a key component for identifying financial and accounting concepts, describing their attributes, and delineating relationships between various financial reporting components. Hoffman is also credited as the "father" of XBRL, as he was an early and active proponent of XML as a mechanism for financial reporting on the web (Smith & Johnson, 2025). The XBRL technology standard for business information reporting was initiated in 1998 when a group of forward-thinking accounting and technology experts proposed the idea of structured data for business information. They presented their idea to the American Institute of Certified Public Accountants (AICPA), which established a committee to explore the concept and provided funding to begin research and development (XBRL International, 2025).

      XBRL began to gain traction in late 1999 and early 2000, and in 2005, the U.S. Securities and Exchange Commission (SEC) launched a voluntary system for companies to report data in XBRL format as a trial. The trial was successful, and in December 2008, the SEC voted to mandate that all companies use XBRL when submitting their financial statements. This rule applies to public companies and foreign private issuers that prepare their financial statements according to U.S. GAAP or IFRS. Companies are required to submit their financial statements to the SEC and post them on their corporate websites using XBRL (Brown & White, 2025).

       XBRL is also expanding into many other industries (Lee & Turner, 2025). For example, the environmental control, compliance, resource management, and healthcare industries are utilizing similar electronic simplification and tagging to assist in reporting statistical data and information. XBRL is even being used in some of the poorest emerging countries with the goal of improving information exchange and reporting to encourage investment and foster economic growth (Lee & Turner, 2025). As technology continues to progress, XBRL’s relevance and momentum will only increase, driven by diffusion and innovation over time. While the United States and Asia focus on XBRL for capital markets, China is working on extending its use for mutual fund reporting, and Europe is a leading force in the implementation of XBRL.

On April 13, 2009, the SEC set the effective date for the rule requiring companies to report all filings using interactive data. Requiring companies to file their financial statements in interactive data format enables investors, analysts, and SEC staff to capture and analyze that information more quickly and at a lower cost than when using static formats. Investors with access to a computer and the internet can easily acquire and download interactive financial data that was once only available to large institutional users. These new interactive data requirements do not alter disclosure requirements under federal securities laws but mandate the inclusion of financial statements in a new interactive data format as an exhibit. Filers will still be able to submit traditional text-based reports, as they are today, for those who prefer them (Taylor, 2025).

Current Issues Facing XBRL

       XBRL is continuously evolving across the globe (Smith & Johnson, 2025). As mentioned earlier, the SEC implemented a requirement for publicly traded companies and mutual funds to file financial reports in this interactive data format. When the world’s financial supply chain begins to share a single language for financial and business information, investors will be able to find numbers they can understand and interpret, enabling them to make informed decisions across companies worldwide (Smith & Johnson, 2025). Investors will be able to compare data automatically, at little or no cost, through various resources. The executives of XBRL International anticipate a new wave of XBRL developments that will make reporting in XBRL a global standard, with a particular focus on how governmental agencies can unify and simplify data collection (XBRL International, 2025). Presently, the Netherlands leads in implementing this process, with Australia and New Zealand closely following.

      Since the SEC’s mandate for XBRL financial report submissions, companies have faced challenges in submitting incorrect information that is riddled with errors and inaccuracies (Lee & Brown, 2025). Common errors identified after XBRL implementation have been categorized into four sections of the XBRL process: mapping, extensions, tagging, and the overall data entry process. When companies submit filings with errors, they have 24 hours after discovery to communicate and correct the issues to avoid legal liabilities.

      In the mapping process, common errors occur when companies select the wrong elements from the U.S. GAAP Taxonomy or create unnecessary elements (Lee & Brown, 2025). Companies face challenges during this process, and although software exists to assist them, it cannot always account for human error. A proposed solution is for companies not to rely solely on software, but to ensure a strong understanding of a company’s accounting concepts and the U.S. GAAP taxonomy to ensure the mapping process is accurate (Lee & Brown, 2025). During the extension process, additional errors can arise if elements are placed in an improper location within the financial records, resulting in incorrect mathematical relationships between elements. Recommendations to reduce errors during this process include allowing only individuals with a high level of expertise in applying XBRL code and the software used to generate the code (Lee & Brown, 2025). Finally, errors in the tagging process can be detrimental to accuracy. Tagging errors often occur due to human error, such as assigning the wrong data to elements or making data entry mistakes. Proposed solutions for tagging errors include having accountants with a deep understanding of the company’s financial statement formats oversee the tagging process and perform double-entry validation procedures to catch keystroke errors (Lee & Brown, 2025).

From an international perspective, there are benefits for lower-GDP countries to implement XBRL. However, these countries will need to weigh the costs against the potential benefits, such as increased access to capital through the equities market. This influx of foreign investment could provide a significant boost to smaller economies. The downside, however, may be the hurdles associated with fully adopting XBRL. (Siti, 2025). One significant challenge faced by emerging countries is the lack of awareness among individuals involved in reporting and communicating business and financial information, such as professional accountants. This highlights a larger challenge: training these professionals to implement and effectively use the technology

Case Study # 1:   XBRL Implementation at Microsoft

      Microsoft Corporation, one of the largest multinational technology companies, was among the early adopters of XBRL for financial reporting. In 2009, Microsoft began utilizing XBRL to file its financial statements with the U.S. Securities and Exchange Commission (SEC), marking a significant move towards more standardized and accessible financial data (Taylor & Harris, 2025). The decision to implement XBRL was driven by the company's goal to improve financial transparency, streamline reporting processes, and enhance the accuracy of its filings.

     Prior to the implementation of XBRL, Microsoft faced challenges in managing and reporting vast amounts of financial data. Traditional reporting methods were slow and prone to human error, making it difficult for investors and regulators to quickly interpret and analyze the company's financial health. By adopting XBRL, Microsoft was able to automate the filing process, reduce errors, and improve the consistency of its financial data (Taylor & Harris, 2025). XBRL allowed the company to tag individual financial data points, such as revenue, expenses, and assets, in a standardized format that could be easily processed by various stakeholders, including analysts, investors, and regulators.

      One of the major benefits Microsoft experienced from implementing XBRL was the ability to quickly and accurately produce financial statements in compliance with both U.S. GAAP and International Financial Reporting Standards (IFRS). This was particularly important as the company operated in multiple jurisdictions and needed to meet diverse regulatory requirements. The adoption of XBRL also enabled Microsoft to reduce the time and cost associated with preparing financial reports, as the tagging process was automated, and the risk of errors in manual data entry was minimized.

      However, the transition to XBRL was not without its challenges. During the initial stages of implementation, Microsoft encountered difficulties with the mapping process, as they needed to ensure that all financial data points were properly mapped to the appropriate taxonomy elements. This process required a deep understanding of both the XBRL code and the underlying financial data (Taylor & Harris, 2025). To address these challenges, Microsoft invested in training their finance and IT teams, ensuring they had the necessary skills to effectively manage the XBRL system. They also worked closely with external consultants and software vendors to ensure that the XBRL tags were accurately applied and that the data could be easily extracted and analyzed.

Despite these initial challenges, Microsoft’s adoption of XBRL has proven to be a success. The company has been able to achieve greater transparency in its financial reporting, improve the efficiency of its regulatory filings, and enhance its ability to communicate financial information to investors and other stakeholders. The success of XBRL at Microsoft has served as a model for other large corporations looking to modernize their financial reporting processes (Taylor & Harris, 2025).

Case Study # 2: SEC's Adoption of XBRL for Financial Filings

        In 2009, the U.S. Securities and Exchange Commission (SEC) mandated that public companies submit their financial reports in XBRL format. This decision was part of a larger initiative to modernize and streamline the regulatory reporting process, increase transparency, and improve the accessibility of financial data (U.S. Securities and Exchange Commission, 2025). The SEC’s adoption of XBRL was aimed at enhancing the speed and accuracy of data analysis, reducing the costs associated with manual data entry, and making it easier for investors and analysts to access and compare financial information across companies.

     The SEC’s decision to require XBRL filing stemmed from the increasing complexity of financial reports and the growing demand for more timely and accurate data from investors, regulators, and analysts. Prior to the implementation of XBRL, companies filed their financial statements using traditional formats such as HTML and PDF, which were difficult to analyze automatically and required significant manual effort to extract relevant data. XBRL addressed this issue by allowing financial data to be tagged with standardized labels, making it easier to process and analyze (U.S. Securities and Exchange Commission, 2025).

       The SEC began its phased implementation of XBRL in 2009 with a voluntary program for large public companies. By 2011, the program became mandatory for all public companies filing with the SEC. The agency’s goal was to improve the timeliness and accuracy of financial disclosures, which would benefit both investors and the regulatory environment. XBRL was expected to provide a more efficient and reliable way of comparing financial data across companies, enhancing investor confidence in the information presented in financial statements (Brown & Green, 2025).

       However, the transition to XBRL was not without challenges. Initially, companies faced difficulties in mapping their financial statements to the appropriate XBRL tags. One common issue was the misapplication of tags, where companies used incorrect or outdated taxonomy elements, leading to data inaccuracies (Brown & Green, 2025). Additionally, some companies struggled to integrate XBRL into their existing financial reporting systems, requiring significant investments in both training and software.

        To address these challenges, the SEC collaborated with XBRL International and other industry experts to provide guidance and support to companies. (U.S. Securities and Exchange Commission, 2025).

The agency also set up a dedicated XBRL support team to assist filers with technical issues, ensuring that they could meet the regulatory requirements without facing unnecessary delays or errors

          Despite the challenges, the SEC’s adoption of XBRL has had a significant positive impact on the financial reporting process. By 2020, over 15,000 public companies were filing their financial reports using XBRL, and the system had been instrumental in providing investors and analysts with faster and more reliable access to financial data. (Brown & Green, 2025). The SEC’s efforts have also led to the development of more advanced analytical tools that enable investors to compare companies across sectors and regions more efficiently

        In conclusion, the SEC’s adoption of XBRL has marked a major milestone in the evolution of   financial reporting. The transition has improved the quality and transparency of financial disclosures, although it required significant efforts to address technical challenges and ensure compliance. As more companies and regulatory bodies worldwide adopt XBRL, its role in improving global financial reporting continues to grow.

Case Study# 3: ESMA’s Implementation of XBRL for Financial Reporting

       The European Securities and Markets Authority (ESMA) has played a crucial role in the adoption of XBRL within the European Union (EU). In 2020, ESMA mandated that all publicly listed companies in the EU must submit their annual financial reports using the European Single Electronic Format (ESEF), which is based on the XBRL framework (ESMA, 2025). The goal of this mandate was to improve the accessibility, transparency, and comparability of financial data across European markets.

      Prior to this mandate, financial reports in the EU were often submitted in various formats, such as PDFs and scanned documents, making data extraction and analysis time-consuming and prone to errors. (Johnson & Clark, 2025). The introduction of XBRL aimed to standardize financial reporting and enhance the usability of financial statements for investors, analysts, and regulatory bodies

Challenges in Implementation

       The transition to XBRL under the ESEF framework presented several challenges for companies across the EU. (Müller, 2025).Many firms had to upgrade their financial reporting systems and invest in specialized software to comply with the new requirements. Additionally, companies had to train their accounting and IT teams to properly tag financial data in XBRL format, ensuring accuracy in reporting

      One significant challenge was the variation in accounting standards across EU member states. While the International Financial Reporting Standards (IFRS) taxonomy provided a structured approach, some countries required additional extensions to accommodate country-specific accounting practices. This led to initial inconsistencies in reporting, which ESMA addressed by providing guidelines and technical support to issuers (ESMA, 2025).

Benefits and Impact

       Despite the initial challenges, the implementation of XBRL through ESEF has yielded significant benefits. Investors and regulators can now access structured, machine-readable financial data, enabling them to compare companies across different industries and countries more efficiently. (Johnson & Clark, 2025). Automated data processing has also reduced the likelihood of errors and improved the speed at which financial information is analyzed

     Furthermore, ESMA’s adoption of XBRL has encouraged other European regulatory bodies to integrate digital reporting standards, leading to a more harmonized financial ecosystem. Companies have also reported long-term cost savings as the automated nature of XBRL reduces the need for manual data entry and validation processes (Müller, 2025).

Case Study # 4: Adoption of XBRL for Financial Reporting by a Global Corporation

         A global corporation, ABC Corp, is required to file its annual financial reports with regulatory bodies in several countries. Historically, ABC Corp submitted its financial reports in PDF format or Excel spreadsheets, which were labor-intensive and time-consuming for both the company and regulators to process and analyze.

        In 2023, ABC Corp decided to adopt XBRL for its financial reporting to improve the efficiency of reporting, ensure accuracy, and meet regulatory requirements across multiple jurisdictions. The company’s finance team worked closely with XBRL consultants to map their financial statements (balance sheet, income statement, and cash flow statement) to the appropriate XBRL taxonomies for different countries (XBRL International, 2023).

By implementing XBRL, ABC Corp gained several advantages:

• Automated Validation: XBRL’s built-in validation rules helped ensure that the financial reports were accurate and consistent before submission, reducing human errors (XBRL US, 2023).
• Efficiency: XBRL allowed ABC Corp to generate financial statements more quickly and with less manual effort, making the process faster and more cost-effective (Smith & Jones, 2023).
• Global Compatibility: XBRL is used by regulators in many countries, allowing ABC Corp to submit the same data in a standardized format to regulators in different markets without needing to adjust the format for each jurisdiction (XBRL Europe, 2023).
• Enhanced Analytics: Regulators and investors were able to access the company’s financial data in a machine-readable format, making it easier for them to analyze and compare ABC Corp’s performance against other companies (Zhang, 2023).

          As a result, ABC Corp was able to streamline its financial reporting process, enhance transparency, and comply with various international regulatory requirements with less effort and greater accuracy. This case highlights how XBRL helps large corporations improve their financial reporting and data accessibility while meeting global regulatory standards.

The Future of XBRL: Recent Developments and Expert Insights

         The future of eXtensible Business Reporting Language (XBRL) is being shaped by several key developments aimed at enhancing its accuracy, usability, and integration with emerging technologies.

Advancements in XBRL Specifications

       Continuous improvements to the XBRL standard are essential to maintain its relevance in digital data exchange. In 2024, the U.S. Securities and Exchange Commission (SEC) updated the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system to support the 2024 XBRL taxonomies, reflecting the latest accounting standards and other improvements. (SEC)

Integration with Artificial Intelligence and Machine Learning

      The convergence of XBRL with artificial intelligence (AI) and machine learning (ML) is transforming financial reporting by automating data tagging, enhancing data quality, and enabling predictive analytics. AI algorithms can process vast amounts of XBRL-tagged data to identify trends and anomalies, facilitating more informed, data-driven decision-making. This integration not only streamlines reporting processes but also bolsters the transparency and reliability of financial disclosures. (XBRL)

Enhanced Validation and Quality Assurance

        To boost confidence in XBRL data, the SEC's EDGAR system updates have included support for the latest taxonomies, ensuring that filers use the most up-to-date tags related to new accounting standards and other improvements. These updates assist U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) filers in detecting and correcting inconsistencies or errors in XBRL-formatted financials before submission to regulatory bodies, thereby enhancing the overall quality and reliability of financial reports. (SEC)

Global Regulatory Adoption

          Regulatory bodies worldwide are increasingly adopting XBRL for financial reporting. For instance, the European Banking Authority (EBA) plans to implement XBRL format enhancements by the end of 2024, underscoring the standard's growing global acceptance and the necessity for organizations to adapt accordingly. (https://ez-xbrl.com)

       In summary, the future of XBRL is being shaped by its integration with AI and ML, ongoing enhancements to its specifications, improved validation mechanisms, and broader regulatory adoption. These developments collectively aim to enhance the accuracy, efficiency, and accessibility of financial reporting in the digital age.

Key Aspects of SEC’s XBRL Implementation:

          The U.S. Securities and Exchange Commission (SEC) has been a strong proponent of XBRL, mandating its use for financial reporting to improve transparency, efficiency, and accessibility of financial data. Since 2009, the SEC has required public companies to submit financial statements in XBRL format as part of their filings through the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system.                

1. Mandated Filings
   The SEC requires all publicly traded companies to submit their financial statements and footnotes in XBRL format, ensuring that investors and analysts can easily access and analyze data. This includes Form 10-K (annual reports), Form 10-Q (quarterly reports), and other relevant financial disclosures.(sec.gov, 2018)
2. Inline XBRL (iXBRL) Requirement
   To further enhance usability, the SEC has mandated the use of Inline XBRL (iXBRL), which integrates human-readable financial statements with machine-readable XBRL data in a single document. This transition allows users to view tagged data directly within the financial report, eliminating the need for separate XBRL files. (sec.gov, 2018)
3. Validation and Quality Control
   The SEC employs validation tools to ensure that XBRL filings comply with standardized taxonomies and formatting rules. Companies must adhere to the U.S. GAAP Financial Reporting Taxonomy (for domestic issuers) or the IFRS Taxonomy (for foreign filers), reducing inconsistencies and improving data comparability.(sec.gov, 2024)
4. Enforcement and Compliance
   The SEC actively monitors compliance with XBRL requirements and may issue comment letters or take enforcement actions against companies that fail to meet accuracy and formatting standards. Additionally, ongoing updates to XBRL taxonomies require companies to stay informed and adjust their reporting practices accordingly. (sec.gov, 2024)
5. Benefits to Investors and Analysts
   by mandating XBRL, the SEC aims to enhance market transparency, enabling investors, analysts, and regulators to efficiently analyze large volumes of financial data. Automated processing reduces reliance on manual data entry and enhances decision-making through more precise financial comparisons and risk assessments. (esc.gov, 2024)

Methodology of XBRL Implementation and Data Collection

Implementing eXtensible Business Reporting Language (XBRL) involves a structured approach to ensure accurate financial reporting, efficient data collection, and regulatory compliance. The methodology encompasses several key stages:

 1-Taxonomy Development. A taxonomy in XBRL defines the elements, relationships, and            

     rules for financial reporting. The development process includes:

• Regulatory Requirements Analysis: Identifying applicable accounting standards, such as IFRS or GAAP.
• Concept Definition: Defining financial elements (e.g., revenue, assets) and their attributes.

          Data Hierarchy and Linkbases: Establishing relationships between elements using     

          presentation, calculation, definition, reference, and label linkbases( XBRL)

2. Mapping and tagging. This phase involves aligning a company's financial data with the                                                          

    appropriate XBRL elements:

• Data Mapping: Aligning company-specific financial statements with taxonomy elements.
• Tagging Financial Data: Applying XBRL tags to individual data points for machine readability.

         Extensions and Customization: Creating company-specific extensions if standard    

          taxonomy elements are insufficient(FASB)

3. Validation and Quality Assurance. Ensuring compliance and accuracy through rigorous      

     validation:

• Schema Validation: Checking structural integrity against the taxonomy.
• Calculation Consistency: Verifying mathematical relationships between tagged data.
• Business Rule Validation: Ensuring compliance with regulatory rules and business logic.
• Automated Error Detection: Using validation tools to detect missing or incorrect tags.   (XBRL)

4. Report Generation and Submission. Preparing and submitting the XBRL report:

• Instance Document Creation: Generating an XBRL-compliant file containing the tagged financial data.
• Inline XBRL (iXBRL) Formatting: Embedding XBRL data within a human-readable HTML document.

           Regulatory Submission: Uploading reports to financial authorities such as the SEC or

            ESMA (XBRL)

5. Data Collection Methods. Collecting XBRL data efficiently involves:

• Automated Data Extraction: Utilizing APIs and data tools to extract XBRL-tagged data for analysis.
• Data Validation: Ensuring the accuracy and completeness of collected data through validation rules.
• Storage and Management: Implementing databases or data warehouses to store and manage XBRL data.( XBRL US)

6. Data Consumption and Analysis. Once collected, XBRL data can be analyzed by various       

     Stakeholders:

• Automated Data Extraction: Machine-readable XBRL data enables real-time processing and comparison.
• Financial Analysis: AI and machine learning tools enhance trend detection and risk assessment.
• Regulatory Oversight: Authorities use XBRL data for financial monitoring and fraud detection.( EZ-XBRL)

7. Continuous Improvement and Updates. Adapting to evolving standards and practices:

• Regulatory Updates: Implementing new accounting rules and XBRL taxonomy versions.
• System Enhancements: Improving software tools for more efficient data processing.
• Stakeholder Training: Educating users on best practices for accurate XBRL implementation. ( Deloitte United States)

8. Online Resources and Websites

• Official XBRL Websites: Utilize the official XBRL websites, including XBRL International, XBRL US, and XBRL Europe. These sites provide valuable resources, case studies, and technical documentation on XBRL standards and adoption.
• Financial Regulatory Websites: Explore websites of financial regulatory bodies, such as the SEC and ESMA, for information on XBRL-related regulations, guidelines, and mandates on financial reporting.

• Analyzing these reports can provide insights into the types of financial data being shared and how effectively XBRL is being utilized in practice.
• Machine-Readable Data: Investigate machine-readable data formats in XBRL, analyzing how financial data can be parsed, analyzed, and visualized using software tools.

Research Questions

          This study aims to explore the significance and impact of XBRL in financial reporting by addressing the following research questions:

1. In what ways has XBRL enhanced the efficiency and accuracy of financial reporting?
2. What are the primary challenges organizations encounter when implementing XBRL in their reporting processes?
3. How does the adoption of XBRL influence financial transparency and the decision-making processes of investors and regulators?
4. What factors drive the global adoption of XBRL, and how do they vary across different regions and industries?
5. What improvements can be made to XBRL to enhance compliance, usability, and its overall effectiveness in financial reporting?

Methodology

               eXtensible Business Reporting Language (XBRL) is an XML-based framework designed to improve the accuracy and efficiency of financial reporting. This qualitative study explores the impact of XBRL on financial data management, drawing insights from scholarly articles, library sources, and real-world case studies. Previous research indicates that XBRL enhances transparency, minimizes errors, and streamlines compliance with regulatory requirements (Debreceny et al., 2022). Furthermore, it facilitates automated data exchange between stakeholders, reducing manual intervention and improving financial decision-making processes. Despite these advantages, organizations encounter various challenges in adopting XBRL, including implementation complexity and resource constraints (Efendi et al., 2023). This study aims to understand how organizations perceive and implement XBRL while examining the practical benefits and barriers associated with its adoption.

           Using a qualitative approach, this research relies on content analysis, expert interviews, and case study reviews to explore the practical experiences of organizations using XBRL. Prior studies highlight regulatory mandates as a significant driver of XBRL adoption, especially in countries where financial authorities require standardized reporting (Pinsker & Li, 2021). However, the adoption process is not without obstacles, as companies often struggle with integrating XBRL into existing financial systems and training employees to use the technology effectively. The case study analysis reveals that firms with proactive strategies, such as investing in specialized software and expert training, tend to achieve smoother transitions and greater benefits from XBRL adoption. These findings contribute to a deeper understanding of how businesses navigate the complexities of XBRL implementation.

          The thematic analysis of this study identifies patterns in how organizations perceive the benefits and challenges of XBRL. While some companies recognize its potential for automation, accuracy, and regulatory compliance, others experience difficulties due to limited knowledge and technical barriers (KPMG, 2023). The results suggest that wider adoption of XBRL requires targeted educational initiatives, improved technology, and supportive regulatory policies to help organizations maximize its advantages. Future research should explore additional case studies across different industries to assess the broader implications of XBRL adoption. Ultimately, this study underscores the importance of a strategic approach to XBRL implementation, emphasizing the need for organizations to develop comprehensive plans to optimize their financial reporting processes. Collect information from peer-reviewed articles, particularly those focusing on the evolution, adoption, and challenges of XBRL in financial reporting.

         Analyze case studies of organizations that have adopted XBRL for their financial reporting. Examples include Microsoft, which is frequently used as a case study for the impact of XBRL                                                          

Conclusion

          The eXtensible Business Reporting Language (XBRL) is a specialized variant of XML designed to enhance the semantics of business reporting. It defines a set of codes or tags that can be attached to text, ensuring that financial data is structured and meaningful. XBRL benefits all users within the financial information supply chain by providing a standardized methodology for preparing, publishing, exchanging, and analyzing financial statements across various formats. Since 2009, XBRL US has focused on improving the quality of XBRL data, particularly in the US GAAP reporting domain, by offering education, training, and tools to support preparers and encourage broader adoption (About XBRL, n.d.). However, the development and maintenance of XBRL databases can be costly due to incompatibilities between data formats and IT platforms. Moving forward, the future of XBRL will depend on advancements that enhance its accuracy and efficiency.

          As technology evolves, the integration of artificial intelligence (AI) and machine learning in XBRL processes has the potential to further enhance financial reporting. Automated data validation and real-time error detection could help reduce inconsistencies and improve data reliability. Additionally, the global adoption of XBRL continues to grow, with regulators and financial institutions increasingly mandating its use for reporting. This widespread implementation could drive further improvements in financial transparency, efficiency, and comparability across different industries and jurisdictions. As a result, XBRL is poised to play a crucial role in the future of digital financial reporting.

         ESMA’s implementation of XBRL through ESEF has transformed financial reporting across the European Union. While companies initially faced challenges in transitioning to the new format, the benefits of improved data accuracy, transparency, and comparability have made XBRL a valuable tool for financial reporting. As XBRL technology continues to evolve, it is expected to play an even greater role in financial regulation and corporate governance in the EU and beyond.

       Implementing XBRL requires a comprehensive methodology encompassing taxonomy development, data mapping, validation, report generation, data collection, analysis, and continuous improvement. Adhering to this structured approach ensures standardized, accurate, and transparent financial reporting, enhancing data accessibility and usability for businesses, regulators, and investors.