Originated in the 1990s, the eXtensible Business Reporting Language (XBRL) was designed as a standards-based format for munication and information exchange between business systems. Interest in XBRL has grown in recent years as global regulatory anizations -- including the U.S. Securities and Exchange mission and the U.K.’s HM Revenue & Customs -- have begun to require its use. Other regulators are following suit: By 2013, for example, foreign panies that use International Financial Reporting Standards will also be required to use XBRL tagging when submitting financial returns to the SEC.

But are there business benefits to using XBRL, or is it just another headache-inducing pliance regulation, especially for smaller panies? One person who sees the upside is David A. Frankel, chief marketing officer of EDGAR Online, a firm that provides XBRL pany information and services. Searchpliance. recently talked with Frankel about how XBRL tagging, when done rrectly, can actually help panies of all sizes from a business standpoint.

Has the evolution of XBRL created a hardship for panies, especially smaller ones?

Frankel: If you were to ask filers, some might say the fact that the SEC is mandating XBRL-tagged filings is a hardship, as they have the burden of the sts for pliance. However, there are plenty of solutions available in the marketplace that allow efficient tagging to our, and ultimately, everyone can see the value -- filers included -- from better tagging of this information. More transparency equals better analysis. My guess is that those panies not fully realizing the value of XBRL tagging would be first to say it is a hardship.

How can panies use the information gathered under SEC mandates surrounding XBRL to their advantage? Can it help them from a business perspective?

Frankel: It can absolutely help from a benchmarking and risk analysis perspective. The ability to analyze granular data on petitors, suppliers, customers, shareholders, stakeholders, etc., allows issuers to truly understand the risks involved with running their business. It empowers them to make better decisions and react quicker to changing market nditions. ernance, risk and pliance across the enterprise is a huge issue for panies right now -- and the solutions all revolve around harnessing intelligence from the data they and parable panies are producing with their filings. The key to finding value in this XBRL-tagged data is integrating solutions that can present this data in a meaningful way.

Is it easier for larger panies to adhere to the SEC mandates surrounding XBRL than it is for a smaller pany? Why or why not?

Frankel: In some ways it can be easier for larger panies, some ways more difficult, and some it makes no difference. It all depends on the pany, the industry in which it operates, market nditions, etc. In very stable industries or with nservative panies that have an established business model, deployment of XBRL can almost be a "set it and fet it" type experience.

XBRL tagging can help panies better understand trends around what is going on with their panies, and surrounding petitive landscapes.

David A. Frankel, chief marketing officer, EDGAR Online Inc.

Once the tags are selected, they will not likely fluctuate from quarter to quarter, so it can be pretty painless. For panies that have a more plex structure or are rapidly changing businesses, the quarterly reporting process can be cumbersome to begin with. Proper XBRL tagging can just add to the process, as it takes some expertise to do it right.

Understandably, the larger pany usually has a bit of an advantage initially, as it generally has more resources (and in some cases, highly skilled internal reporting personnel) that can manage the onboardingprocess. Smaller panies can have a bit of a steeper learning curve (thus, the SEC mandate for larger panies to initially take on the tagging burden). In either case, however, alignment with a highly skilled tagging partner -- one that understands the pany, its industry and trends in use of XBRL -- is key. The great news is that there is an emerging trend around "assisted self-service" tagging, that deploys a bination of technology/software and nsultative services that makes the process less painful and more st-efficient.

How does using XBRL help panies, especially smaller ones, gain transparency and exposure?

Frankel: As mentioned before, XBRL tagging can help panies better understand trends around what is going on with their panies, and surrounding petitive landscapes. For smaller panies, the ability to get in front of emerging ernance, risk and pliance problems before they make an impact can be a huge advantage -- as even small issues can have a tangible impact on such firms, and the amount of resources it takes to react and rever when it is too late can be significant.

The key to gaining value from the transparency and exposure opportunities created by XBRL, however, will only be realized when panies (large and small) enter the process with usability as the goal over simple pliance. plying with SEC disclosure mandates does not necessarily yield useful results -- just pliant filings. panies that stick to a nsistent, intuitive tagging strategy (one that minimizes the use of extensions) will be the ones that produce the most meaningful data -- and will be the ones who benefit most.