Academic journal article The Journal of Developing Areas

The Expectation of Perceived Benefit of Extensible Business Reporting Language (Xbrl): A Case in Malaysia

Academic journal article The Journal of Developing Areas

The Expectation of Perceived Benefit of Extensible Business Reporting Language (Xbrl): A Case in Malaysia

Article excerpt

INTRODUCTION

The financial and non-financial information is usually distributed and disseminated by digital reporting formats. The well-known digital reporting formats are the Portable Document Formats (PDFs) and Hypertext Mark-up Language (HTML), which are exactly the same as the printed version. Currently, there is a new development in reporting format technology, which is known as eXtensible Business Reporting Language (XBRL). XBRL is an advanced technology and an extension to communicate corporate reporting in a structured manner in order to be understood and received across borders. The XBRL is a more effective reporting technology format compared to PDF and HTML. Cox (2006) from the U.S. Securities and Exchange Commission had agreed that the interactive data would be provided by a new reporting technology, which has the capability of real-time reporting and real-time analysis. Charles Hoffman is the founder of XBRL and started it in 1998. He has been called 'the father of the digital language of business'. Extensible Business Reporting Language (XBRL) is a global standard for business reporting. Charles Hoffman had started the XBRL after he found that the eXtensible Markup Language (XML) could be used for presenting financial statements and auditing purposes. During that time, the AICPA (American Institute of Certified Public Accountants) was the key organization for developing the XBRL international standard, particularly for business reporting (Hoffman, 2006). In this research, it is important to understand the concept of a new reporting technology and the way XBRL will provide an interactive data. The awareness and intention to adopt the XBRL will be resumed effectively once users, preparers and regulators are able to understand the whole concept of XBRL.

THE PERCEPTION OF THE EXTENSIBLE BUSINESS REPORTING LANGUAGE (XBRL)

Perception is considered as important matter to be study for XBRL implementation. Perception on the expectation of benefits, awareness, understanding and acceptance of XBRL carried a lots of mixed findings for example Pinsker (2003) had also tested perceived benefits, which researcher found that respondents did not perceive benefits, job performance or usefulness pertaining to the adoption of XBRL. Beside the perception on the the important of XBRL for financial reporting for example Nel & Steenkamp (2008) had evaluated the perception of relevance, impact, the perceived ease of use, benefits and risks of XBRL instead of measuring accountants' understanding because of the low level of implementation and understanding. In other hand, Venkatesh & Armitage (2012) had investigated the perception of the importance of assurance criteria on XBRL financial statements such as assurance on the accuracy, completeness, existence, proper taxonomies, proper extensions, valid extensions and validity and being well formed. Researchers had found that there was importance of assurance and provided some clear understanding of the criteria in order to provide assurance. The perception is the stage of acceptance where stakeholders perceived the importance and relevance to accept and implement. In this phase, the researchers focused on the impact on stakeholders whenever the XBRL had been adopted by an organization.

RESEARCH METHODOLOGY

Samples and Data Collection

Researchers had called on all firms and relevant respondents involved in using and preparing business reports, especially in the Kuala Lumpur and Selangor area. The information on the firms was obtained from the representative of the Malaysian Institute of Accountants (MIA), Malaysian Yellow Pages and by approaching the attendees of MIA courses and conferences. The researchers found about 1200 potential respondents and eventually 650 potential respondents had agreed to provide some feedback. Thus, about 650 potential respondents were identified and had received a set of questionnaires; however, only 350 respondents from various job descriptions had successfull y completed the questionnaires and returned them. …

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