The idea behind eXtensible Business Reporting Language (XBRL) is mapping simplification. Instead of treating financial information as a block of text - as in a standard internet page or a printed document or flat file - it provides an identifying tag for each individual item of data. These tags identify and characterize the data for other systems. For example, company net profit has its own unique tag.

By using XBRL tags, you can automate processing of business information through different  software packages, cutting out laborious and costly processes of manual data entry, reformatting and reconciliation. XBRL capable software can read XBRL data "intelligently": recognizing the information in a XBRL document, select it, analyze it, store it, exchange it with other systems and present it automatically in a variety of ways for users. XBRL greatly increases the speed of handling of financial data, reduces the chance of error and permits automatic checking of information.

Companies using XBRL can save costs and streamline their processes for collecting and reporting financial information. Consumers of financial data, including investors, analysts, financial institutions and regulators, can receive, find, compare and analyze data much more rapidly and efficiently if it is in XBRL format.

XBRL can handle data in different languages and accounting standards. It can flexibly be adapted to meet different requirements and uses. Data can be transformed into XBRL by suitable mapping tools or it can be generated in XBRL by appropriate software.