Advantages of XBRL:
- Provides a standardized language for all companies reporting their financial data
- Allows investors and stakeholders to easily download and understand financial reports
- Provides a list of definitons (taxonomies) for the financial terms used
- Saves time in entering and reporting financial data and increases efficiency
- Is very cost-effective
Disadvantages of XBRL:
- Is not used by all publicly traded companies as of now
- Tags may be wrongly assigned to financial terms
- There is still a lack of consistency in the use of standards
- Wrong definitions (taxonomies) may be given to certain financial terms
- It may pose security risks for companies publicly reporting their financial information