Electronic Resource

Article - Measuring Accounting Reporting Complexity with customized extensions XBRL – A Behavioral Economics approach Vol. 4, No. 3 Halaman: 138–151

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We propose a new measure of accounting reporting complexity (ARC) based on
customized extensions XBRL elements in relation to the number of reporting tags (NRT),
expressed as the relative Extension Rate (ER) as a behavioral economics solution to improve
markets. Behavioral insights have recently gained attention in different scientific and applied
fields. Thereby behavioral economists set out to improve market conditions to aid practitioners
and consumers make wiser and more informed decisions that have a positive impact over time.
XBRL extensions reduce comparability of financial disclosures and complicate financial
analysis and investor decision making. We find that ER is positively associated with market
capitalization and profitability. ER is on average higher in industries perceived as complex. The
preparation and disclosure of more accounting items deviating from the base taxonomy is more
complex for consumers of financial and non-financial information. Increasing ER imply
comparability among peers is less enabled. Comparing with standard used indicators of
operating and linguistic complexity, the associations between ARC and these outcomes are
more consistent, exhibit greater explanatory power, and have stronger economic significance.
The ER resulting from IFRS-filers, i.e. companies which prepare their financial statements
under International Financial Reporting Standard (IFRS) are on average significantly higher
than US GAAP filers, i.e. companies which prepare their financial statements under United
States General Accepted Accounting Principles (US GAAP). In addition, the authors identify
the nature and reasoning of extensions by conducting semi-structured interviews. This article
is based on the “transparency technology XBRL (eXtensible Business Reporting
Language)”Sunstein (2013), which should make data more accessible as well as usable for
private investors. Overall, the findings contribute to the emerging behavioral economics trend
with a novel application in data science and accounting.

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Ketersediaan

Informasi Detail

Judul Seri

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No. Panggil

657.0285 BEE m

Penerbit

: International Journal of Management and Applied Research., 2017

Deskripsi Fisik

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Bahasa

English

ISBN/ISSN

2056-757X

Klasifikasi

657.0285

Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

Vol. 4, No. 3 Halaman: 138–151

Subjek

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Info Detail Spesifik

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Pernyataan Tanggungjawab

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