Extensible Business Reporting Language (XBRL): A Perceptual Study

In India Ministry of Corporate Affairs has mandated certain companies to file Balance Sheet and Profit & Loss Account using the Extensible Business Reporting Language (XBRL) taxonomy. The study highlights the preparedness of Accounting Community for the same. The purpose of this research is to empirically examine the impact of demographic factors on the perceived benefits andobstacles in adopting XBRL in India.

The data on these variables was collected by employing an onlineand hand filled survey questionnaire. Total 185 usable questionnaires were examined. Responses were collected from the accounting professionals, practicing chartered accountants, managers of reputed companies selected randomly. By conducting EFA factors of XBRL awareness, benefits from XBRL adoption and perceived obstacles in XBRL adoption were extracted. A comparison among the groups of respondents was done on the basis of demographics of years of experience and nature of occupation.

The awareness on XBRL is at nascent stage in India. There is difference in the perception of the accounting community on the basis of level of experience and type of occupation with regard tothe Awareness and perceived obstacles in adoption of XBRL, though there is no difference in their perception with regard to its perceived benefits.

The implications of the findings are discussed in the context of promoting the adoption of XBRL technology. More education and training needs to be imparted. XBRL should be taught in universities too as future language of accounting reporting.