The XBRL Global Ledger Taxonomy Framework (XBRL GL) is a holistic and generic XML and XBRL-based representation of the detailed data that can be found in accounting and operational systems, and is meant to be the bridge from transactional standards to reporting standards, integrating the Business Reporting Supply Chain.
XBRL GL is developed by the XBRL GL Working Group of XBRL International.
XBRL GL can be used by Computer programs for information interchange of accounting General ledger balances (summarized information) as well as complete accounting ledgers (payables, receivables, inventory, payroll, order entry, purchasing, banking) supporting object oriented accounting, quantity accounting and transparency support. The instance documents (XML files) can also be viewed in Web browsers using XSL or programmatically; it can also be carried in Inline XBRL. XBRL is designed to standardize the data, processes and rules of Business Reporting as a whole, although most implementations focus on financial reporting. XBRL GL can support the detail and integrate to all manners of reporting, financial, tax, sustainability, statistics and otherwise, and carry both quantitative and qualitative information.
Relation to UN/CEFACT accounting and SIE
There are a number of other efforts that seek to standardize parts or all of the data in an ERP system, although most focus on the general ledger. Amongst the competing/complementary efforts in the space are UN/CEFACT, OECD Standard Audit File and SIE (file format) accounting interchange file formats.
XBRL GL is an XML focused format. UN/CEFACT is UML (Unified Modeling Language)-based, with standard naming and design rules to convert it to an XML file format. In Sweden the elder (1992) domestically SIE (file format) is a tagged text file format. The XML technology is much better suited to work with modern HTML and WEB-based technology and tools. The XML files are in the range 20-50 times larger than SIE files on the hard disk.
Due to the needs of the tax community in many countries, the Standard Audit File is generic, but an example of a proprietary XML format is provided.
The XML format abilities (such as validation capabilities) and the huge activities around XBRL and UN/CEFACT have created a huge potential and expectations of modern accounting technologies. XBRL GL is certainly formed from its origins, the audit and financial reporting societies in the USA and globally. UN/CEFACT is working on trade administration theme and accounting is the terminal point of trade administration and its file format is designed from a trade administration point of view. The Standard SIE is designed from a local Swedish vendor society’s own market interests.
All three file formats are however transparent and independent of any charts of accounts and tax regulations.
Accounting information interchange issues - The accounting file standard stand-off
Is a common international accounting file format possible?
There has been quite some file format debate. However, differences in Chart of accounts between countries, represents a much bigger compatibility problem of information interchange between accounting and financial reports between accounting cultures. Tax regulations also make huge differences in the actual content of accounting and financial report information between countries.
The basic issue is if it is possible to transfer accounting data over governmental boundaries and the data would be understood by the receiver? Will it be possible for someone to read a balance sheet with a foreign chart of accounts and understand it? Will it make any difference to transfer it by computer files in standardized file formats?
The EU commission has spent large efforts into the field of tax administrative harmonisation and for instance is the main intention latest version of the EU VAT directive to achieve this and to support electronic trade documents like electronic invoices better in cross border trade especially within the European Union Value Added Tax Area. But there is still a huge way to real compatible charts of accounts and international accounting information interchange.
One question is if international trade agreements have much value without a global harmonisation in VAT tax administrative legislation between the agreeing parts. The EU-agreements with countries like Norway do not include VAT union membership. And so goods are stuck in customs (to large costs) for VAT declaration and administratively it requires a lot of work. Work and halting not happening within the EU VAT union. With global VAT legislation administrative harmonisation a lot is suddenly possible.