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XBRL Basics - How does it work?

Oct 01, 2023 · 2 min read

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XBRL enables preparers to utilize software to tag all financial items in their business reports to the elements within a taxonomy. This is accomplished with an Instance Document which can be electronically exchanged and validated between computers or viewed in a human readable format (this is called rendering).

Below is a list of frequently used terms and explanations of how XBRL works:

What is a taxonomy?

A taxonomy is a grouping of financial concepts (known as “elements”) in which

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