Why might an organization that is NOT a public company choose to integrate XBRL into their accounting information?
A) XBRL allows for easier consolidation of data from disparate systems with the organization.
B) XBRL simplifies the financial reporting process in such a way that the statements need not be reviewed by the CFO.
C) The SEC requires that all organizations utilize XBRL whether they are public or private.
D) The SEC requires that all organizations utilize XBRL to report comparative data.

Question

Quizplus · Accepted Answer

XBRL (eXtensible Business Reporting Language) facilitates the consolidation of financial data from various systems within an organization, making it easier to manage and report financial information. This is beneficial for any organization looking to streamline its financial reporting processes, regardless of its public or private status. The other options are incorrect because XBRL does not eliminate the need for CFO review (B), and the SEC's XBRL requirements apply specifically to public companies, not all organizations (C and D).

Why Might an Organization That Is NOT a Public Company