Distinguish between XBRL tags and XBRL taxonomies.
CS Executive · Company Law · PYQS · June 2018
Distinguish between XBRL tags and XBRL taxonomies.
Answer & Explanation:
In XBRL, information is not treated as a static block of text or set of numbers. Instead, information is broken down into unique items of data (e.g. total liabilities = 100). These data items are then assigned mark-up tags that make them computer-readable. For example, the tag 100 enables a computer to understand that the item is liabilities, and it has a value of 100. Computers can treat information that has been tagged using XBRL 'intelligently'; they can recognize, process, store, exchange and analyze it automatically using software. Because XBRL tags are formed in a universally-accepted way, they can be read and processed by any computer that has XBRL software. XBRL tags are defined and organized using categorization schemes called taxonomies. XBRL Taxonomies Different countries use different accounting standards. Reporting under each standard reflects differing definitions. The XBRL language uses different dictionaries, known as 'taxonomies', to define the specific tags used for each standard. Different dictionaries may be defined for different purposes and types of reporting. Taxonomies are the computer-readable 'dictionaries' of XBRL. Taxonomies provide definitions for XBRL tags, they provide information about the tags, and they organize the tags so that they have a meaningful structure. As a result, taxonomies enable computers with XBRL software to: understand what the tag is (e.g. whether it is a monetary item, a percentage or text); what characteristics the tag has (e.g. if it has a negative value); its relationship to other items (e.g. if it is part of a calculation). Taxonomies differ according to reporting purposes, the type of information being reported and reporting presentation requirements.
Topics: XBRL
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