Strategic Resource Management Assessment on XBRL Reporting Implementation and Adoption Challenges

Exploring critical barriers and strategies for implementing widespread XBRL financial reporting in global markets to enhance transparency and efficiency in strategic resource management assignments.

Assessment Details

Assessment: 25%

Length: 2000 words

Due date: 8 may 2013

Assignment Task

Internationally the XBRL business reporting standard is either mandated or voluntarily used in regulatory filing programs in more than 25 countries. As of 2026, this number has expanded significantly, with over 65 countries adopting XBRL for financial, regulatory, and even sustainability reporting to further standardize global data exchange.

XBRL is used by the world’s leading capital markets, including Brazil, Canada, China, France, Germany, India, Israel, Japan, Korea, Singapore, Spain, Sweden, the United Kingdom and the United States.

An increasing number of countries are mandating XBRL as a means to improve the transparency and effectiveness of publically lodged financial reports and to achieve efficiencies.

Both the IASB and the FASB are committing significant resources to developing and refining their XBRL taxonomy leading to the presumption that XBRL reporting will be mandated at some point in the future. In recent years, FASB has released updated 2026 taxonomies focusing on data quality rules, lease disclosures, and segment reporting to address ongoing accuracy issues.

In Australia, certain government agencies are moving to mandate the use of SBR (Standard Business Reporting) which is based on XBRL

However the following article,

http://hitachidatainteractive.com/2013/02/13/persistent-errors-inhibit-consumers-from-usingxbrl-data

Discusses some of the problems with the widespread adoption of XBRL reporting of financial data. Europe continues to lead in structured reporting adoption, while the US emphasizes tagging accuracy and consistency across periods to mitigate persistent errors.

Using the above article as a starting point, critically evaluate the implementation of wide spread XBRL reporting and the impediments to wide spread adoption.

Presentation and Submission Requirements

You must ensure that the assignment is submitted by the due lodgement date and that you have complied with all other lodgment requirements in the Unit Outline, for example;

• where and when to lodge your assignment,
• you must retained evidence should the need to establish your individual contribution to the assignment,
• late lodgement will incur a penalty equal to 10% o extension of time,
• see the University’s plagiarism policy (THIS IS VITALLY IMPORTANT, PLAGIARISM WILL BE DEALT WITH HARSHLY),
• Use of safe assign tool, as you must retain an editable electronic copy of your assignment and provide it if requested.
• Electronic/word e processing, layout requirements, etc. Modern tools like inline XBRL are now integrated in many jurisdictions to simplify human-readable formats while maintaining machine-readable data.

? Printed in 12 point time new roman font at 1.5 spacing

• appendices (note word limits in this submission do not include appendices)

• referencing & bibliography requirements

? you must use the Harvard referencing system

Format

There is no specific format for submission of this assignment and students are free to choose from a variety of acceptable models; for example, an essay approach, a formal report format, or simply an information memorandum. Note however, if you choose to use an information memorandum approach which normally sets out the facts and other relevant information (point-by-point format) but fail to provide linkages to logical argument – you will penalised. Challenges such as high implementation costs and the need for skilled personnel continue to hinder full adoption in emerging markets.

This is a ‘thinking’ assignment and what is expected is your personal views based on your research and the evidence you have sourced. Further, an assignment which presents more quotes than constructive analysis and argument may also be heavily penalised. What is critical in this assignment is that you have fully understood the requirements and that you have answered the questions (for example if asked whether a position or view is justified, you must answer by stating yes/no, agree/disagree, or some other similar response depending on the requirements of the question) followed by logical development of argument supporting your position.

An executive summary of approximately 100 – 200 words will be required, and should briefly provide information on the scope of the assignment question (your understanding of the requirements), your research approach and the methods used (what methods and procedures were engaged to source your information and to reach your conclusions), and a summary of the outcomes of your work (what position you have taken or conclusion you have reached and why). Recent mandates, like the 2026 updates for sustainability reporting, highlight XBRL’s role in expanding beyond traditional financial data.

In critically evaluating XBRL implementation, persistent data quality issues, such as inaccurate tagging and custom extensions, remain significant barriers that reduce comparability across firms. Studies from 2026 indicate that while XBRL enhances liquidity for adopters, benefits diminish with excessive custom tags. Overall, widespread adoption promises greater transparency, but overcoming technical complexity and regulatory alignment is essential for success. Addressing awareness gaps through training can accelerate global integration in financial reporting.

References

1. Kang, T. (2026) ‘Mandatory XBRL Adoption by U.S.-Listed Foreign Firms’, Journal of Information Systems. doi: 10.2308/ISYS-2025-031.
2. Al-Sartawi, A.M.A.M., Sanad, Z. and Musleh Alsartawi, A.F. (2024) ‘Does XBRL adoption increase financial information transparency in digital disclosure environment? Insights from emerging markets’, Journal of Digital Economy, 3, pp. 1–12. doi: 10.1016/j.jdec.2024.03.001.
3. Efobi, U., Tawiah, V., Borgi, H. and Nnadi, M. (2023) ‘The role of eXtensible Business Reporting Language on the transparency and efficiency of information disclosure in Jordanian companies’, Cogent Business & Management, 10(3), p. 2265082. doi: 10.1080/23311975.2023.2265082.
4. Chen, J.Z., Hong, H.A., Kim, J.-B. and Ryou, J.W. (2021) ‘Information processing costs and corporate tax avoidance: Evidence from the SEC’s XBRL mandate’, Journal of Accounting and Public Policy, 40(2), p. 106822. doi: 10.1016/j.jaccpubpol.2021.106822.