XBRL: a technology whose time is now; The question isn't whether XBRL is going to happen, but how quickly, where first and with how much collaboration. Even with big U.S. players behind it, fewer than 5 percent of U.S. public companies are now using XBRL--but this could soon change.

• Author: Cheney, Glenn
• Position: Financial reporting: xbrl

XBRL is today what HTML was 10 years ago: full of potential, yet all but unknown. And those who know what XBRL, or eXtensible Business Reporting Language, is all about and all it can be are concerned about a most disturbing fact: The XRBL information engine of the world's most powerful economy--the U.S.--is lagging behind that of every other developed economy in the world.

XBRL allows business information to carry digital tags that let it pass seamlessly between enabled applications. It has been likened to bar codes that stick to data wherever it goes. Once business information is tagged, everyone along the information supply chain--investors, creditors, analysts, stock exchanges, auditors, regulators, policymakers and others--can quickly, accurately, easily and inexpensively access, validate, compare, analyze, slice, dice, mix, match and manipulate information from any number of companies. It also allows the same body of data to automatically--instantly--find its proper place in spreadsheets, tax returns, business reports, annual reports, pie charts, government forms, Web sites and financial statements. No manual transcription. No mistakes along the way.

How big is this? According to Financial Executives Research Foundation (FERF), "XBRL will have as big an impact on commerce in the 21st century as double-entry bookkeeping had on the Industrial Revolution."

That's pretty big. So the question isn't whether it's going to happen. It's how quickly, where first and with how much collaboration and coordination. The big players in the U.S. are already behind it. The Securities & Exchange Commission (SEC) likes it, as does the American Institute of Certified Public Accountants (AICPA). Financial Executives International (FEI) is a strong supporter and driver, the Federal Deposit Insurance Corp. (FDIC) has formally adopted it and all U.S. banks will be soon reporting in it.

How surprising, is it, then, that fewer than 5 percent of American public companies are using it, and not many more have any idea why it may be relevant to them? The epicenter of this global collaborative effort is XBRL International (XBRL.org). Almost 300 government agencies, companies, audit firms, software developers, accounting institutions and other entities are contributing to the effort. National jurisdictions are working on national market implementation while collaborating on the development of international XBRL standards.

Some jurisdictions are way ahead.

* In The Netherlands, all government agencies, from the justice department to bank regulators to tax collectors, are working together on a national taxonomy of business reporting items, and Dutch municipalities are already filing quarterly reports in XBRL.

* The Australian Prudential Regulation authority has been collecting regulatory data in XBRL for years.

* The Toronto Stock Exchange published its 2003 financial...