XBRL, the financial reporting markup language, has sort of slipped from sight in capital markets, although banks across the country are using it to report their results to regulators. (see XBRL: It’s Not Just for Regulators Any More
http://www.windowsfs.com/articles.asp?ID=575) Recently though, XBRL has received some attention where it counts, from Christopher Cox, head of the SEC, who addressed two XBRL conferences on the topic.

“Few understand the SEC’s interest in interactive data. The real basis of our interest in interactive data is tied to our fundamental mission – to protect investors. Markets function best when all the information that market participants need is available to them when they want it, and in a form they can use.” Cox said he is looking for progress in XBRL in months rather than years; the SEC is soliciting proposals to update its EDGAR filing system.
(See the Christopher Cox video at http://www.sec.gov/spotlight/xbrl.htm)

XBRL made a splash a few years ago when several technology companies, including Microsoft and Intel, plus Morgan Stanley, used it to file their SEC reports. Microsoft has been a leader in the XBRL effort. EDGAR Online developed a direct link to Excel which allows analysts to import data directly into a spreadsheet, as we reported (http://www.windowsfs.com/news_summary.asp?article=2060). A Microsoft Office System-based XBRL solution can help to solve financial reporting and analysis challenges by reducing the amount of time analysts spend handling data.
http://www.microsoft.com/office/showcase/xbrl/default.mspx

“Financial analysts, presumably you got into your line of work because you enjoy analyzing information, not for the brute labor of compiling it,” Cox said, noting that there are high error rates from manual rekeying and even from automatic tools.

R.L. Renck & Co, a provider of advanced securities research and investment advisory services, used to spend two to six hours getting data into spreadsheets. Now with I-Metrix from EDGAR Online, it takes a few minutes. Using XBRL and I-Metrix, Renck has reduced the time spent gathering and preparing data by more than 95 percent, allowing more time and focus on providing expert analysis.
http://members.microsoft.com/CustomerEvidence/Search/EvidenceDetails.aspx?EvidenceID=13879&LanguageID=1

Results like those are what Cox is after. He isn’t satisfied with the current state of information handling.

“It’s a helluva way to run a capital market. Think how much better life will be when you can not only rely on the numbers, but you can instantly slice them and dice them as you please,” he said.

XBRL offers great opportunities for companies that want to use XBRL for analysis or want to import it into personal financial management software for individual investors. The protocol also offers great opportunities for software companies to develop programs that can turn company reporting into XBRL.