The number of governments in the world have mandated that companies of all sizes adopt XBRL over the next several years. It's already in use internationally and among the largest U.S. businesses. Surprisingly for such a sweeping development, XBRL remains relatively unknown. Expertise is limited and people who can lead the changeover will be very much in demand.

XBRL, a version of XML (Extensible Markup Language), has been under development for some time but has gained new urgency with the ongoing financial scandals and the current economic downturn. In addition to benefits such as efficiency and long-term cost-effectiveness, XBRL provides much greater transparency. It's far easier to access and analyze information and detect fraud and other irregularities.

Standard Business Reporting (SBR) is a group of international programs instigated by a number of governments to reduce the regulatory burden for business. The concept is to make business the centre when it comes to managing business-to-government reporting obligations. Businesses conduct their own financial administration; the facts they record and decisions they make should drive their reporting. The government should be able to receive and process this information without imposing undue constraints on how businesses administer their finances. The method used to achieve this goal is to define a "common language" (or taxonomy) using XBRL, then provide systems to process information classified under the taxonomy.

Although the SBR system is relatively straightforward, companies face plenty of implementation challenges, including technical and regulatory considerations, as well as significant start-up costs. Whether they choose to outsource most of the work or develop in-house resources, the process is expected to be labor-intensive and time-consuming.

Often, implementation has two separate but interrelated parts. The first is establishing what needs to be done and the second is mobilizing resources — people and software — to design, implement, communicate and maintain the new system.

Many companies are starting with an internal audit to determine which data is affected, what systems and software they need and how their staff measures up to the needs. While SBR guidelines clearly state which filings are included and what information must be tagged, every company's operations are unique and require a customized approach.

To oversee the process, a company will need a project manager and team. Technology pros will be needed to analyze the current systems and determine if they can be adapted to SBR and its classification system. Internal staff responsible for external reporting will have to ensure that the right data is identified and presented properly.

Equally important, there will be a need for knowledgeable people to help explain the changes and new requirements to colleagues, vendors and others. In short, SBR will bring wide-ranging changes. To meet that need, companies such as Impact are leading the way in developing world class SBR/XBRL solution and are offering consulting services and training programs.