IFRS and XBRL: How to improve Business Reporting through Technology and Object Tracking

PART TWO

IFRS Disclosures, Other Reporting Standards and Assurance

TIPS FOR READERS

It is remarkable how much duplication there is in data collection and, particularly, in describing objects and items from various viewpoints. For instance, the International Organization for Standardization (ISO), through the widespread use of its standards, generates a great deal of quantitative information. This is important for object definition, although that has not, as yet, seeped into business reporting to any great extent.

Also, consider that tax departments, especially in relation to VAT/sales tax, collect a tremendous amount of product information, and also define the boundaries of business entities. For instance, every taxable entity has a specific tax number. Again, in business reporting, boundary definitions for reporting entities is fuzzy in some areas, and that affects the generally expected assurance of integrity in business reports.

An important observation is that the push for good governance has led to increased focus on non-financial reporting. Two issues arise. One is the lack of consistency between related standards. The other is that non-financial reporting is not comparable, not only because of inconsistent standards, but also due to the differing focuses of reporting entities, whereby one might emphasise the low to no usage of child labour whereas another presents its low usage of electricity.

Summary

The first section discusses IFRS disclosures and provides a review of ...