I didn’t know anything at all about XBRL last week, but it’s making my Excel Ninja fingers twitch. For every blogger handling the “A to Z Challenge,” this is the one that really gives us nightmares–X. (They’re out there…Xena, Xolotl…) I briefly considered “X-axis,” but that’s not really accounting-related, or “eXpense,” but that’s not really an “X.” I came across this newfangled thing: XBRL. Y’all, it’s the bees knees!
You know how financial reporting produces paper? Lots of paper? Lots and lots? The computer revolution gave companies the ability to do all their financial data collection and reporting online. Spreadsheets–primarily Excel, but also initially Lotus 1-2-3 and recently Google Sheets–revolutionized the way companies can keep track of and analyze everything.
Financial statements, thanks to GAAP (see Letters E, and G) are also fairly standardized. Assets are on the what? (See Letter “D”–left!) Even the account names on the balance sheet and income statement are pretty standardized–Current Assets, Fixed Assets, Accounts Payable, and so on. It makes it easy for accountants to find and read other people’s statements.
Yet the devil is in the details.Continue reading “X is for XBRL”