Financial reporting with XBRL and its impact on the accounting profession

Since 2010, XBRL (eXtensible Business Reporting Language) has been widely adopted throughout the world. In 2013, both the HMRC (Inland Revenue) and Companies House in the UK accepted XBRL in the iXBRL (inline XBRL) format. Investors have had to face various issues related to XBRL-reported financial information, such as accuracy and interpretability, as well as potential risks with respect to this new format of financial reporting. The purpose of this study is to explore the impact of XBRL on the quality of financial reports and the accounting profession. For this study, a quality index evaluation model was built to examine the quality of financial reports. Over a thousand XBRL and non-XBRL formatted financial…