In spite of the enhanced efficiency it has proven to deliver, a new accounting technology, known as XBRL or Extensible Business Reporting Language, is failing to attract the support expected, according to reports.
Referring to it as a ‘revolutionary technology’, Reuters suggested the technology has the capacity to standardize the way corporate results are reported and speed up trading decisions but has yet been unable to stimulate any real interest in the business community.
The technology works by labelling financial information with computer-readable tags so regulators, investors, managers and other stakeholders can make like-for-like comparisons in financial statements.
Though it has been around for eight or so years, has secured the support of approximately 400 organizations, and boasts the endorsement of US Securities and Exchange Commission Chairman, the wider investment community appears reluctant to entertain the new technology.
Critics of the technology, however, have insisted it is an unpopular choice because it is complicated and lacks simple-to-use software.
But while the technology is still being espoused by some of Wall Street’s major players, it is surely too soon to disregard the potential for a future revolution in accounting technology.