The impact of XBRL on financial statement structural comparability

Steve Yang, Fang Chun Liu, Xiaodi Zhu

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

9 Scopus citations

Abstract

The quality of corporate financial reporting has long been an important interest of financial reporting users, including investors, financial analysts, and regulators. Comparability is a key qualitative characteristic of accounting information that facilitates the comparison of financial statements. However, various reporting formats and accounting taxonomy standards result in inconsistent reporting structures that indirectly affect comparability. To improve information comparability, the U.S. Securities and Exchange Commission (SEC) mandated the adoption of the eXtensible Business Reporting Language (XBRL), a search-facilitating technology, to reduce the costs of information search and improve the efficiency of information processing. Leveraging on the XBRL adoption enforced by the SEC, this study investigates whether the comparability of financial statement structure has improved in the post-mandate XBRL period. The results show a significant, consistent comparability improvement in the post-XBRL adoption period, providing empirical evidence of the positive impact of XBRL on enhancing financial statement structural comparability.

Original languageEnglish
Title of host publicationLecture Notes in Information Systems and Organisation
Pages193-206
Number of pages14
DOIs
StatePublished - 2018

Publication series

NameLecture Notes in Information Systems and Organisation
Volume24
ISSN (Print)2195-4968
ISSN (Electronic)2195-4976

Keywords

  • Comparability
  • Financial reporting quality
  • Financial statement structure
  • XBRL

Fingerprint

Dive into the research topics of 'The impact of XBRL on financial statement structural comparability'. Together they form a unique fingerprint.

Cite this