CHAPTER FOUR

Conclusion

AS IS EVIDENT THROUGHOUT THIS BOOK, IFRS and XBRL are perfect partners in a quest, with an international reach, to improve the basis, processes and outcomes of business reporting. It is noteworthy, and laudable, that significant advancement exists for both of these standards, being seminal, yet effective.

Considerable, and very positive, progress was made in crafting IFRS and implementing them in many countries. The same can be said for XBRL as a necessary vehicle for hastening the delivery of benefits attributable to IFRS, as well as to those associated directly with XBRL. These two standards are key components of the finance and accounting profession and, as such, are critical vehicles of reform for altering how financial reporting is undertaken globally. Certainly, when IFRS and XBRL are intertwined, these standards drive change.

Such solid grounding gives added impetus to further plans for expansion into new areas of commerce, industry and public service, as well as in countries that as yet have not entirely addressed the question of why IFRS and XBRL remain on the sidelines of strategic and operational plans.

Still, as indicated in this concluding part of the book, one needs to look at a number of factors that have an undue influence over the prospective pace of improvement and implementation globally. Accordingly, all related ­stakeholders have a duty to do whatever can be done to move the integrity and usability of business reporting forward. That is a worthy pursuit and one that is sure to support greater confidence in executive decision making, thereby taking economic development forward, and doing so in accordance with principles that are appropriate for modern societies that have clarity as to future expectations about developmental and environmental limitations. With increased attention paid to IFRS and XBRL, such objectives are met in a manner that exudes confidence in all underpinning aspects.

The extent of any change, and the time frame in which it is achieved, will depend upon any, and all, people who can make a decision, in small or large form, to improve the prospects of better business reporting. Thus it is a collective effort, and a very worthy one, that has the capacity to let everyone play a part in facilitating increased will to make the world a better place through universal understanding of how that can be achieved.

Even so, it must be noted that critical issues remain, such as those associated with the less-than-optimal acceptance, globally, of two crucial elements for the integrity of future financial reporting, which are the primary topic of this book. There is a widely held business and social need, in effect, to reduce problems affecting cost containment, profitability, financial reporting and organisational effectiveness of entities in the private and public sectors. In turn, this will have a positive impact upon the decision making of all related stakeholders, whether internal or external, which is a matter of driving further change.

The solution, it seems, is increased education of, and greater dedication by, people who have the capacity to make a difference, and for them to engage with various entities, associations and organisations that uphold and promote XBRL as well as IFRS as very necessary aspects of modern business reporting. By so doing, IFRS and XBRL, the two significant agents of change, can expand opportunities in the private and public sectors and thus, drive necessary improvements onwards. The proposed new paradigm for better business reporting is a likely part of that process, as will be the need for increased focus on and consistent use of standards that relate to object definitions, object tracking and related valuations.

While various issues are apparent in the analysis encapsulated herein, the formula is simple yet effective, as it gives a clear indication of what can be seen as the so-called ‘go forward' model for business reporting across the board. In summary:

IFRS + XBRL = driving change