Analysis of Challenges, Innovations and Utilities in the Adoption of XBRL in Indian Corporate Reporting

The forces of globalisation have narrowed the gap between countries for business activities. Economic barriers between different economies are dismantling and economies are integrating with themselves. The stakeholders of those companies which operate in many foreign countries require uniform corporate reports for uniform information. But each country has its own country specific practices of accounting and reporting. To harmonize the accounting and reporting practices between different countries of the world various attempts have been made by the international bodies like IASB and XBRL International. XBRL is the internet based computer language for the electronic communication of business and financial data started in 1998. XBRL streamlines the processes for collection and reporting of financial information. Users of financial data can get, search, compare and analyse financial information with much more speed and efficiency. The present study attempts to explore various insights into different aspects in adopting XBRL for Indian corporate reporting, primarily focusing upon three vital aspects i.e. challenges, utilities and innovations. The study uses primary data collected through a questionnaire consisting of 29 items from 150 respondents. The study concludes that XBRL is a useful system of corporate reporting in transforming country specific corporate reporting into global reporting but also faces challenges in its way in Indian corporate reporting practices like the literacy, skills, technology etc. Unless these challenges and barriers are removed, the benefits of better corporate reporting through XBRL cannot be capitalized.