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__________
*
Corresponding author. Tel.: +6019-7721610
E-mail: azleens@uniten.edu.my; azleenilias@yahoo.com
© 2015 The Authors
International Conference on Accounting Studies (ICAS) 2015
17-20August 2015, Johor Bahru, Johor, Malaysia
How potential adopters in Malaysia perceive the
relative advantage of eXtensible business reporting
language (XBRL)?
Azleen Ilias
*a
, Mohd Zulkeflee Abd Razak
a
, Rahida Abd Rahman
b
a
College of Business and Administration, Universiti Tenaga Nasional, Bandar Muadzam Shah,26700, Pahang, Malaysia.
b
Labuan Faculty of International Finance, Universiti Malaysia Sabah Kampus Antarabangsa Labuan, 87000 W.P. Labuan, Malaysia
Abstract
The aim of this study is to investigate the perception on relative advantage accrued from using eXtensible
Business Reporting Language (XBRL) among various job descriptions and type of organizations from a
Malaysian perspective. This study also intended to show the association between perceived relative advantage
and intention of future use. The data was collected using questionnaires filled by 350 potential adopters who
were associated with the preparation and use of business reporting. The measurement of perception on relative
advantage consisted of 21items related to users of financial reporting, preparation of financial reporting,
corporations and compliance as well as auditing. This study found mixed findings on the differences of
perception towards relative advantage. This study also found that every item regarding relative advantage was
associated with the intention of future use. It is hoped that this study would contribute to the preparation of
XBRL before embarking on its full adoption and implementation, while improving the awareness,
understanding and perception of potential adopters.
Keywords: XBRL, reporting, relative advantage, Malaysia
1. INTRODUCTION
1.1 Background of the study
Business reporting is another important tool that must be communicated to every stakeholder who needs to have
financial or non-financial information. It will be communicated in different formats that are easily understood
and used by stakeholders, for examples in hardcopy, Portable Document Format (PDF) and HyperText Markup
Language (HTML). Dune, Helliar, Lymer & Mousa (2009) had referred to both PDF and HTML as first
generation internet reports. However, the formats have shown some weaknesses in financial reporting issues
such as in exchanging, comparability, accuracy, transparency and reliability. Malhotra and Garritt (2004) found
that one disadvantage of the earlier formats was that the structure of the information used throughout the system
was not compatible across the program or system. The existing problems in extracting information from formats
such as PDF, HTML, spreadsheet and text document are usually the time taken to process the re-entry of
information, costing and being error prone (Southwell& Nicolaou, 2004). Dune, Helliar, Lymer & Mousa
(2009) and Lymer, Debreceny, Gray, & Rahman, A. (1999) mentioned that the format does not provide any
added value to stakeholders because the same hard copy format is available through the internet.