Views on improving the integrity of global capital markets
25 January 2018

How Structured Data Helps Issuers and Investors

Regulatory authorities around the world have adopted rules requiring companies to provide financial information in an interactive, machine-readable (i.e., structured) format. One such format is eXtensible business reporting language (XBRL).

The idea behind the adoption of XBRL was that the format would enable investors—including CFA Institute members—to capture and analyze information more effectively, as well as help companies automate their regulatory filings and business information processing. Eventually, both preparer and investor costs would be reduced through the use of XBRL. Unfortunately, XBRL has not achieved its true potential for either investors or companies.

CFA Institute addressed the challenges faced by XBRL users in its 2016 report, “Data and Technology: Transforming the Financial Information Landscape.” We continue to address these challenges in various forums and through our participation on the XBRL US Data Quality Committee .

Companies face impediments as well as they continue to see structured data as a compliance burden and a cost center. In a 10 January 2018 webinar , Mohini Singh, ACA, director of financial reporting policy at CFA Institute, presented the findings of a study that examined—through case studies—the costs that companies of all sizes bear in preparing and filing their financial information in a structured format. The webinar addressed what can be done to mitigate those costs so that all parties—preparers, regulators, and users—can avail themselves of the benefits of structured data. In addition, the webinar examined  how investors can use and adapt to new technologies that can enhance the analytical process, and how technology and data standards can be used to improve financial reporting and analysis for both issuers and investors.

Access webinar here.

If you liked this post, consider subscribing to Market Integrity Insights.

About the Author(s)
Mohini Singh, ACA

Mohini Singh was director of financial reporting policy at CFA Institute. She represented membership interests regarding financial reporting and disclosure proposals issued by the FASB, the IASB, and others. Singh holds the Associate Chartered Accountant (ACA) designation.

Leave a Reply

Your email address will not be published. Required fields are marked *

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.