subject: Xbrl Training: Converting Gaap Report To Xbrl [print this page] Extensible Business Reporting Language is popularly known as XBRL. It is a markup language to apply interchangeable business information tags to financial reporting data. As these reporting data are easy to read for machines, this XBRL can simplify the scrutiny of financial data.
For this reason, the Securities and Exchange Commission has made filing annual financial statements of all large US public companies in their format a mandatory job. This instruction has become a real challenge for many businesses. So long, GAAP (Generally Accepted Accounting Practice) has been used for preparing reports by all those companies. Since the instruction, they are compelled to convert their GAAP reports to XBRL reports through a process called tagging.
Here are three considerations to convert GAAP reports into XBRL detailed tagging.
First of all, buy any commercial software used for conversion of GAAP reports into XBRL reports. There are hundreds of such software products commercially available on the market. All of them have been designed in such a way that they can change an Excel spreadsheet or word documents over to XBRL reporting format. To do it, users need to create data maps between the original GAAP report and an XBRL document. There is another option named Clarity FRS that can provide an online service custom-made to the requirements of SEC filing.
For preparing XBRL detailed tagging, the choice of outsourcing the work to any specialist would be a good idea. Make sure you have obtained a quote from your short-list and checked out if this choice is cheaper and simpler than buying software for your individual use only. However, you could be dither at the initial stage on which of the options would be better than the other. If you take a cursory look around the use in general, you will get a clear picture over it. A study revealed that the percentage of the companies who once bought software to convert reports is much lower than those who are outsourcing their works to specialist service providers.
Talk to your company auditor for this conversion job. Consider using your current rapport with your accountant and negotiate a discount. This negotiation will work effectively especially when you have multiple GAAP reports for conversion. Mail the GAAP report to your company auditor in Excel or Word format. The company auditor will insert XBRL detailed tagging for you into the document. Dont ever send the documents as a PDF. Converting it will be quite difficult for your auditors.
The companies seeking out to adopt XBRL detailed tagging practices into their companies ought first to check out the list of products and services found in their local jurisdiction. Check out them online and compare users experiences. Follow the updates to get the optimum services.
Those looking for this service may consider taking advantage of software renting option too. But, this option is not so popular. However, there are many specialist service providers who rent paid membership option to such companies. Companies can use the software for conversion job. But, for this companies must require attending XBRL training classes. Without it, they may most likely to make errors in executing the software.
