AIS and XBRL – Designing with Best Practices

AIS and XBRL Best Practices
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AIS and XBRL Best Practices
Introduction
Financial institutions are experiencing increases in volume, scope, granularity, and complexity of data with robust expectations on frequency, accuracy, completeness, and quality. Specifically, regulatory authorities need high-quality financial data at aggregate and granular levels. Many organizations are adopting standardized data via applying the extensible business reporting language (XBRL) or ISO 20022. XBRL is a digital business reporting standard used in more than 75 countries, including G20 nations, and over 125 regulators (Shah, 134). Indeed, the framework establishes data taxonomies that report business tax requirements, security filings, registration, regulatory reporting, climate change disclosures, and financial accounting. XBRL has numerous benefits, such as improving the exchange of reporting information and decreasing data asymmetries. In addition, it provides users with standardized formats that enable software to facilitate data exchange without migration. XBRL supports automated financial and nonfinancial data processing and facilitates access to granular data without forgetting the reported concept. The paper focuses on how Evergreen Devco Inc. can enforce XBRL's existing practices to promote financial reporting within the firm.
Small-Sized Firm Without an Accounting Information System and It’s Market Position, Product Type, and Business Line
Andrew Skipper and Bruce Pomeroy established Evergreen Devco Inc. in 1974. The company’s headquarters are in Phoenix, Arizona. Evergreen Devco Inc. has 54 employees and generates annual revenues of approximately $18 million (Adams, 1). The small real estate company specializes in multi-family development, property and asset management, commercial, leasing, and retailing. The firm has consistent performance over the years due to proper leadership and employee commitment that exceed the expectations. Evergreen Devco Inc., despite its size, has become a renowned real estate company. When the firm invests in new projects, it invites employees to participate. As such, some workers retire as millionaires. Besides, the company’s policy enables it to retain most of its employees, and over one-third of employees have been working there for more than ten years. Evergreen Devco Inc.’s employees enjoy significant profits from their investments and yearly trips overseas as they support underserved or struggling communities. The company is focused on reaping benefits in the long run, so it treats its workers well and engages in activities to help distinctive communities.
Although Evergreen Devco Inc. has been operating for over four decades, the small firm does not have an established accounting information system (AIS). In particular, an AIS refers to a system that a firm can use to manage, gather, process, report, store, and retrieve financial data when the need arises. The common users of AIS include managers, tax agencies, chief executive officers, accountants, chief financial officers, consultants, tax agencies, business analysts, regulators, and auditors. The primary goa...