Anderson Manufacturing(XBRL-enabled Software)

Anderson Manufacturing (XBRL-enabled Software)
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Anderson Manufacturing (XBRL-enabled Software)
When the XBRL software is enabled, it means that there are the open specification and free royalty for XML data software tags to define financial data for private companies, public corporations besides other organizations. According to Plumlee and Plumlee (2008), most of the accounting software sellers will soon start using XBRL-enabled software or are using it in their production process. It applies a standard based approach which users can publish in different formats, prepare, analyze and exchange the information contained in financial statements. These qualities make XBRL beneficial to all individuals who require financial information. However, understanding these benefits and the technical aspects of the software is the key to enablement of XBRL. At Anderson Manufacturing Company there is an increase in demand for business reports which require a more transparent, timely and high-quality method of reporting. Thus, it is essential to have a better technology which will enhance better reporting. The paper states the advantages of XBRL and a brief explanation of how it works.
Kuechler associates might discuss the advantages of enabling XBRL software with Anderson manufacturing company. One of the benefits is that the software can be used in any country because it allows sharing of information in various languages. The application benefits multiple stakeholders because investors can use it to enhance analysis of economic outcomes.

Also, it can adapt readily to different demands and businesses can use it in sharing their information. Similarly, an organization which applies XBRL can improve the accuracy and speed of data stimulated through its broadcasting cycle. Lastly, XBRL is a source which is open. However, some disadvantages might be relevant to AMC company. According to Plumlee and Plumlee (2008), close real-time exposure emphasizes on short-term outcomes leaving out long-term goals. But the method can help Anderson Manufacturing Company to report all its financial information to all the necessary people and companies. AMC has to change to the new software to ensure they receive these benefits and will notice how it helps them achievement of their objectives.
Memo to AMC
Date: January 16th, 2018
Subject: How XBRL works
Company: Anderson Manufacturing Company
From: Research assistant
Company: Kuechler Associates
How XBRL works
XBRL enables and prepares a utilization software which tags all monetary items in the business information to the elements of the taxonomy. A taxonomy comprises of a group of economic concepts where every aspect is explained and also defines the relationship among these components. For an item like cash in the balance sheet, the taxonomy will have the definition of money and how it relates to other elements in the balance sheet. These different contents of the balance sheet may include, total assets and current assets. The market components have developed the public taxonomies which are preserved by XBRL. If the particular concept does not exist in general taxonomy, it can be added or changed to meet the requirements of the organization.
XBRL is accomplished with an instance article that can be changed electronically and formatted in a way that a person can read or authenticated between computers. Instance document contains the specific business reports for the company structured in a way that computers can exchange and intelligently recognize. Every company should create its instance document. It is an XML folder where specific data from the entity links to the components of the taxonomy to form XBRL article which can be transmitted and validated automatically so that it can be used by various consumers. (Farewell, Lizhong, Kashyap and Pinsker, 2017). Such an aspect makes XBRL widely adaptable which helps the company which uses the software.
Reference
Farewell, S. M., Lizhong, H., Kashyap, V., & Pinsker, R. E. (2017). A Field Study Examining the Indian Ministry of Corporate Affairs’ XBRL Implementation. Journal Of Information Systems, 31(1), 103-117. doi:10.2308/isys-51389
Plumlee, R. D., & Plumlee, M. A. (2008). Assurance on XBRL for Financial Reporting. Accounting Horizons, 22(3), 353-368.