Application and Neediness of Extensible Business Reporting Language

Extensible business reporting language (XBRL) has developed rapidly since its birth as one of accounting information processing standards and the latest technology. In order to spread and apply XBRL, it is vital to objectively understand its advantages and limitations of XBRL, to constantly explore its applicable areas, and to have a good working knowledge of how it can be further developed. Based on system analysis on the research of XBRL in China and the research data samples selected from the listed companies in China Shanghai stock exchange from 2005 to 2006, the test demonstrated that the present enterprise does not obtain the superior earnings from the XBRL application, thus those enterprises can not become the prime promoter of XBRL application. In the research developing process of XBRL, if the problem questioned in this paper can obtain effective solutions, we can believe that this technology will bring significant changes to the accounting profession.