Accounting Information Systems: The Processes and Controls, 2nd Edition

XML AND XBRL AS TOOLS TO ENABLE E-BUSINESS (STUDY OBJECTIVE 10)

Within the environment of the Internet, intranets, and extranets, two languages have emerged as important tools to enable e-business: XML and XBRL. Both languages have important uses.

XML, short for eXtensible Markup Language, is designed specifically for Web documents. Using XML, designers create customized tags for data that enable the definition, transmission, validation, and interpretation of data between applications and between organizations. XML is a rich language that facilitates the exchange of data between organizations via Web pages.

XBRL, short for eXtensible Business Reporting Language, is an XML-based markup language developed for financial reporting. XBRL provides a standards-based method to prepare, publish, reliably extract, and automatically exchange financial statements. In XBRL, dynamic financial statements can be published and manipulated on websites. The next sections explain the uses of XML and XBRL.

XML IN INTERNET EDI

Chapter 9 described EDI (electronic data interchange) as a method to conduct purchase transactions electronically. Traditional EDI is a technology that companies began to implement in the late 1960s. EDI was especially popular in industries such as rail and road transportation, auto manufacturing, and health care. Over the years, EDI came to be the form of conducting electronic business for large companies. However, two limiting factors have made it difficult for small to medium-size ...