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XBRL is not always EXPENSIVE

When i discuss about using XBRL as reporting technology, most of reporting entity told me about how expensive the implementation is. Actually, building XBRL Reporting System is not always required a quite amount of money.  You need to be careful in deciding what kind of tools will be used.

Before you decide which tools is required for your reporting system. you need to know how instance documents created. Diagram (below) shows you how to create XBRL instance document until it is ready to be reported.

NotExpensive

Here are 4 things that you need to create an instance documents:

  1. Good Data Source: To create a good instance you need the data source that has all the data you need to. The data has to comply with the requirement. (Hint: Creating a rule for stored data will help you to decrease the number of correction process, when violations detect in the next steps)
  2. XBRL Taxonomy:  In taxonomy every tag is defined for individual items of data (http://xbrl.org/how-xbrl-works-1). XBRL taxonomy is a data dictionary that contains a specific schema for each report. Every single instance documents refers to a related schema in taxonomy.  (Hint: Use the same XBRL taxonomy with the reporting system)
  3. XBRL Instance Creator: Instance creator is tools using to create an instance documents for specific report. XBRL instance creator needs the data source to get fact and taxonomy as guidelines of how the data should report (include data type, rule of data – validation, and the sequence of data). It also needs a mapping to link every data with a related XBRL item. (Hint: a good instance creator need to show you whether your data fulfill the rule specified in taxonomy or not)
  4. XBRL Instance Validator (Optional): XBRL validator is needed to detect either technical violation (define in schema) or business violation (define in formula linkbase).

When you have a free from violation data source and a good instance creator (can tell you when your data violate technical validation), having an instance validator is only an option. But, if you don’t put a business validation in your data source, then having an instance validator is a must.

In the other hands, there are alternatives for instance creator. You can choose XBRL instance creator tools in the market, or you can using an XML mapper tools (VBA based, java based, etc), or you can use ETL. Every tools have their own pros and cons points.

In choosing your tools, the first thing you need to do is understand your current reporting system. After that, you should identify which component you should reuse and which one need enhancements. Then, put instance creator and validation tools in your  process flow.

Identify which process is overlapping, for example, whether business validation in your DWH overlap business validation in your XBRL validator. With this process you will increase efficiency in your reporting process, and also can help you to cut some of your budget :).

But don’t forget, performance is number one.  State the key performance before you choose the solutions.

-by Sri Handika Utami

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5 comments on “XBRL is not always EXPENSIVE

  1. S
    October 21, 2013

    good article.. a must read for an entity looking to build or buy an XBRL solution.. Could you also share the current status of XBRL adoption in Indonesia. Is the final taxonomy released? any new mandated to be followed..
    thnx

    • shutami
      October 21, 2013

      Thanks, i will write something about that later. I hope my article can help the people who want to know about XBRL, especially about XBRL implementation in Indonesia.

  2. S
    October 21, 2013

    There is an XBRL validator at regulator end. if yes are the business rules available for entities to check run the same at generation end prior to submission..

    • shutami
      October 21, 2013

      Yeah, they should have XBRL validator in regulator end. But, whether entities can check run their instance using regulator portal or not, it depend on regulator’s policy.
      From what i know this far, in indonesia, Bank Indonesia has provided that fitur for their LBUS project. But, that’s just for reporting load. It will be better if entity has XBRL validator too in their end. So, they shouldn’t have to hesitate about the violation in their instance. So, they can provide even last minute upload.
      I hope they will provide the same fitur for LSMK. But for the other regulator, just wait and see. I think it’s really wise if they provide that kind of function too.

  3. Pingback: XML Schema vs Database Schema (Could it be Converted into Each Other?) | GeeXBRL

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This entry was posted on September 30, 2013 by in Interest, XBRL and Integrated Financial Reporting and tagged , , , , , , , .
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