XBRL for MBRS – Designed for Human Augmentation, Not Human Replacement
In a rapidly growing digital economy, people fear that they are going to be replaced by bots. And why not? Artificial intelligence tools have already taken over mundane tasks like financial reporting in the XBRL format and data analysis. What’s next? Are these bots coming after accountants? Are these really designed for human replacement? Let’s find out.
But first, let’s understand what XBRL is for MBRS.
XBRL is an MBRS compliant solution that offers several advantages at all stages of business reporting and analysis. The benefits can be seen in the form of security, automation, cost-savings, increased reliability, higher accuracy, a better quality of financial information, and effective decision making.
As this language for electronic communication of financial data becomes the norm worldwide, accountants fear that instead of integrating the process, it’ll take over the reporting process.
However, this is nothing but a common misconception.
XBRL is here to SUPPORT accountants and regulators. After all, even importing financial data for the preparation of XBRL reports requires human intervention. Every step of the XBRL preparation, from importing data to tagging and final conversion, is controlled by humans. All XBRL does is make it easy for resources to compile, convert, and analyze this financial data to make data-driven decisions.
What People Think XBRL Is and What it Actually Is
- People think XBRL is a new accounting concept.
- They think it’s an additional financial burden for businesses.
- And adopting it will increase costs.
How much truth lies in these statements?
For starters, XBRL is a reporting framework that works in accordance with existing accounting concepts. It is based on the Malaysian taxonomy and is in line with the requirements laid down by the SSM.
Secondly, adopting XBRL is not expensive, probably a reason why several businesses have started their transition to this reporting standard.
Lastly, it is not a financial burden. In fact, it is here to ease it. When financial reporting takes too much time and resources, XBRL comes to the rescue. It frees up resources, allowing them to focus on core operations rather than mundane tasks like tagging data elements.
XBRL – Offering Systematic Stability?
XBRL is all about systems, processes, and introducing order. And if all financial regulators and authorities use XBRL as a standardized format to track and assess the financial information, it will significantly help in data granularity. With this, the regulatory authorities can take preventive measures such as identifying fraud or inconsistencies in data rather than just implementing policies.
Should You Leverage It?
Well, it’s a technology-based solution here to transform the way companies report financial data. Moreover, it is being mandated by the SSM. So you should not only leverage it to streamline financial reporting but also to make data-driven decisions.
And partnering up with a global service provider like DataTracks can come in handy. DataTracks has over 16 years of experience in preparing and converting XBRL reports. Moreover, the experts at DataTracks are well-versed with the SSM and Malaysian Taxonomy, providing them with the capability to make the transition smooth and hassle-free.
For more information on their services, please speak to an XBRL expert @ +60-392-126-125 or email at email@example.com.