XBRL is recognized as an official standard by European Union
The good times for XBRL are here! The European Commission has officially approved eXtensible Business Reporting Language (XBRL) as eligible for referencing in public procurement. XBRL as a standard is considered equivalent to other standards such as W3C XML and other standards set by ISO.
The Europe 2020 strategy which lays more emphasis on standardisation, as set out in the communication from the commission ‘Europe 2020: A strategy for smart, sustainable and inclusive growth’ must be credited with triggering the momentum. The European multi-stakeholder platform recommended XBRL as the Information and Communication (ICT) Standard. This could not have been possible without the efforts of XBRL International, XBRL Europe and other European XBRL jurisdictions.
The European Union launched its ICT standardisation process to benefit the EU Community in many ways. By specifying a standard, EU can ensure greater interoperability, flexibility and cost savings. There are different criteria for being approved as an ICT standard in Europe, such as market acceptance and coherence with European Standardisation. The European regulators like EBA (Banking), EIOPA (Insurance) and ESMA (Securities), along with national regulators in other EU countries currently use XBRL as the standard. XBRL fits the requirement of the bill perfectly. By recognising XBRL as the ICT standard, the EU is specifying to the regulators that they can still adhere to mandatory EU guidelines for best practices in procurement with XBRL.
Business reporting has become more global today requiring greater transparency, more detailed reporting and quicker distribution of reporting, than ever before. XBRL is a structured data standard that makes business and financial information computer-readable and easier to process. With XBRL, business and financial reporting can be made more streamlined, which will eventually reduce the cost for reporting and increase the timelines and consistency.
For more information on the EU recognition, please refer to the bill signed by Jean Claude Junker, President of the European Commission, in the Official Journal of the European Union.
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