The Internet Encyclopedia (Volume 3)

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XBRL (EXTENSIBLEBUSINESSREPORTINGLANGUAGE) 869

companies’ Web sites, find the data with the tags (e.g.,

CashAndCashEquivalents), extract the data, and analyze

the data with analytical applications.

XBRL is different from other XML-based specifica-

tions, such as FpML, FIX, FinXml, OFX, ebXML, and

XML/EDI.


FpML (Financial Products Markup Language) is an

XML-based industry-standard protocol for swaps,

derivatives and structured products. (Further informa-

tion may be found at the FpML Web site, http://www.

fpml.org, FpML, n.d.)


FIX (Financial Information Eschange) defines specific

kinds of electronic messages for communicating secu-

rities transactions between two parties. (Further infor-

mation may be found at the FIX Web site, http://www.

fixprotocol.org, FIX, n.d.)


FinXML is an XML-based standard for financial insti-

tutions to exchange financial data and to communicate

the details of highly structured financial transactions.

(Further information may be found at the FinXML Web

site, http://www.finxml.org, FinXML, n.d.)


OFX (Open Financial Exchange) is a specification for

the electronic exchange of financial data between finan-

cial institutions, businesses, and consumers via the In-

ternet. (Further information may be found at the OFX

Web site, http://www.ofx.net, Open Financial Exchange,

n.d.)


ebXML (Electronic Business using XML) is a suite of

specifications that enables enterprises to conduct busi-

ness over the Internet. ebXML provides a standard

method for exchanging business messages, conducting

trading relationships, communicating data in common

terms, and defining and registering business processes.

(Further information may be found at the ebXML Web

site, http://www.ebxml.org, ebXML, n.d.)

XML/EDI (Extensible Markup Language/Electronic

Data Interchange) provides a standard framework to ex-

change various types of data—for example an invoice,

healthcare claim, or project status—can be searched,

decoded, manipulated, and displayed consistently and

correctly by first implementing EDI dictionaries and ex-

tending vocabulary via online repositories to include

business language, rules, and objects. This framework

is intended to apply to a variety of information sources:

transactions, exchanges via an API (Application Pro-

gram Interface), Web automation, database portal, cat-

alog, workflow document, or message. (Further in-

formation may be found at the XML/EDI web site,

http://www.xmledi-group.org, XMLEDI, n.d.)

In contrast with these transaction-oriented specifica-

tions, XBRL is reporting oriented. As such, XBRL enables

individual investors and financial professionals to search

through and extract data from financial statements, then

place them in their own applications, simplifying one

of the key phases of financial statement analysis. XBRL

does not establish new accounting standards (although

XBRL.org has a process for approving taxonomies) but

is intended to enhance the value or usability of existing

standards. Also, it does not require providing additional

financial information to outside users.

How XBRL Works

Figure 6 depicts how XBRL would be used. Suppose that a

public company, Toronto Inc., wishes to provide financial

statements to analysts.

After the company prepares its financial information

using its internal accounting system, an XBRL document

is created by mapping the financial information to

Toronto Inc.

Database

Application

such as

Accounting

System

XBRL Taxonomy

Other Taxonomies

Toronto Inc. User

Internet

XBRL

Document

Application

Software

HTML

PDF

Application Data

Other Formats

Style Sheet

-Prepare XBRL Document

-User’s Request

-Obtain XBRL Document via the Internet

-Translate XBRL Document into Other Formats

Third Party

Style Sheet

Figure 6: How XBRL works.