Building XBRL For State-owned Enterprises

In order to strengthen the supervision and management of state-owned enterprises, the government has set up State-owned Assets Supervision and Administration Commission to represent the state in performing the duties of investors. Financial reporting system for state-owned enterprises meets the need for timely information about enterprise's financial information, but, on the other side, increases the reporting burden on enterprises. Extensible Business Reporting Language (XBRL) is based on the existing financial statement standards, has the ability to standardize financial data formats ,making it easy for computer to access to the financial statements and related applications of information .The implementation of XBRL bring benefits to enterprises, investors, accountants, banks, industry analysts, as well as the competent authorities. The purpose of this paper is building XBRL for state-owned business enterprise, in order to solve the problems of redundancy, data incompatibility problems and enhance the efficiency of the entire financial information supply chain.The paper divides into six parts:Part I is outlined in the preamble, including the background and purpose of this study, the research process and structure. With the evolution of accounting information systems, the problems of reconciling differences arising from changing software systems. Thus, the flow of compatible information presents a challenging task in itself, both within an organization and with outside parties such as auditors, banks, and tax authorities.This paper takes the financial reports of state-owned enterprises as an example to explain how to use XBRL to solve this problem. The paper will introduce technology of XML and XBRL, build XBRL for State-owned Business Enterprise as well as make a computer program to show how XBRL enhance the efficiency of financial report system.The second part of this paper is about the supervision and administration of state-owned enterprises, as well as the technology of exchanging financial information and data. The paper first discover the history of accounting information exchange from the manual data exchange, EDI, to internet-based financial reporting process, revealing that XBRL has enormous potential in the field of business financial report. XBRL make accounting information exchange faster, more autonomy, more convenient, it is a leap forward of accounting information system. Then, the paper discovers the development background, theoretical research and practical application of XML, XBRL. This chapter also discovers the supervision and management of state-owned enterprises, demonstrating the feasibility of XBRL on financial report of state-owned enterprises.The third part of this paper explores technology details of XML, XBRL. This chapter introduces a number of most important technical of XML related technologies, including XML Schema and DTD syntax check, display and output statements and XSL/XSLT CSS (Extensible Style sheet Language Transformation), Xlink, Xpoint and other resources and links. Then, in accordance with the international organization's XBRL development framework, this chapter introduces XBRL technical standards including (Specification) in the formulation, Classification Standard (Taxonomy) and establishment example files (Instance Documents). This chapter will also discover U.S. FRTF (U.S. Financial Reports Taxonomy Framework) and Chinese "standardized electronic information disclosure of listed companies," Classification Standard (Taxonomy). PartⅣintroduce how to establish XBRL for state-owned enterprises.According to the XBRL International, it takes six steps to develop taxonomy, including colleting financial sources (Source of financial fact), Structure, data collection (Collect), input (Enter/Import) and output (Export). Following these steps, I build XBRL for state-owned enterprises and establish examples of documents that show the browser. This chapter has established XBRL Schema of financial reports for state-owned enterprises which is revealed in the appendix.In part V, I design a computer program to prove the availability of XBRL Schema for state-owned enterprises. This program can import financial data from the enterprise database access to a browser, edit these data and change into XBRL format financial statements. It also produces a function to upload files to a virtual SASAC website. This chapter will introduce the hardware and software environment, the function and operation of the system. Some part of the program code is attached to the appendix.The last part of this paper is conclusions and recommendations. This paper has demonstrated that XBRL has great potential advantages in financial report field. There are many related areas should be research in future, such as financial data transmission security, XBRL financial reports analysis, data mining, est. Based on the Extensible Business Reporting Language applications, this paper has following contributions and innovations:(1) This paper demonstrated the feasibility and the value of XBRL for financial reports of state-owned enterprises.(2) In this paper, I have analysis management style of SASAC in the role of represent investors, as well as state-owned enterprises financial reporting system.(3) This paper has established XBRL Schema of financial reports for state-owned enterprises, which is in line with XBRL international standards.(4) In this paper, I have designed a computer program to prove the availability of XBRL Schema for state-owned enterprises. This program can import financial data from the enterprise database access to a browser, edit these data and change into XBRL format financial statements. It also produces a function to upload files to a virtual SASAC website.(5) This paper has provided a preliminary solution for XBRL used in business for management of financial report, which can be referred by other programs in the future.