Citations


Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062
USA

Conference List

Humanities and Social Sciences Letters

June 2020, Volume 8, 2, pp 202-214

XBRL Adoption: An Examination on the Malaysian Business Reporting System (MBRS)

Azleen Ilias

,

Erlane K Ghani

,

Nasrudin Baidi

,

Rahida Abdul Rahman

Azleen Ilias 1 ,

Erlane K Ghani 2
Nasrudin Baidi 1 Rahida Abdul Rahman 4

  1. College of Business and Accounting, Universiti Tenaga Nasional Malaysia, Malaysia. 1

  2. Faculty of Accountancy, Universiti Teknologi MARA Malaysia, Malaysia 2

  3. Labuan Faculty of International Finance (FKAL), Universiti Malaysia Sabah, Malaysia. 4

Pages: 202-214

DOI: 10.18488/journal.73.2020.82.202.214

Share :

Article History:

Received: 03 January, 2020
Revised: 14 February, 2020
Accepted: 17 March, 2020
Published: 08 April, 2020


Abstract:

In 2018, Small Medium Enterprises (SMEs) that are registered with the Companies Commission of Malaysia (SSM) in Malaysia are required to prepare their annual return using eXensible Business Reporting Language (XBRL) via Malaysian Business Reporting System (MBRS), followed by voluntary submission of financial reports and statements in 2019. This study seeks to explore if practitioners are aware of and fully understand MBRS. This study also investigates the level of MBRS preparation among the companies. In addition, this study examines the practitioners’ readiness, intention to use and experience in using MBRS. Finally, the factors influencing MBRS adoption among the practitioners will be examined. Using a questionnaire survey as the research instrument, the data shows that there are improvements to be made in regards to the understanding, readiness and intention to use the MBRS which is requirement by SSM. Additionally, this study shows how optimism, innovativeness, discomfort and insecurity influence the intention to use MBRS in the future. The finding indicate that an XBRL adoption via MBRS received a more positive response from the practitioners and hence, signals a possible successful XBRL adoption in Malaysia. This in turn, ensures the stakeholders a high quality financial reporting.
Contribution/ Originality
This study contributes in the existing literature by examining the practitioners’ readiness, intention to use and experience in using MBRS.

Keywords:

Awareness, Readiness, Intention to use, MBRS, XBRL, Practitioners, Malaysia.

Video:

Reference:

Abed, S. R. (2018). The perception of XBRL technology in the Jordanian context: An exploratory study. Research Journal of Applied Sciences, 13(1), 1-4.

Acheampong, P., Zhiwen, L., Antwi, H. A., Otoo, A. A. A., Mensah, W. G., & Sarpong, P. B. (2017). Hybridizing an extended technology readiness index with technology acceptance model (TAM) to predict e-payment adoption in Ghana. American Journal of Multidisciplinary Research, 5(2), 172-184.

Amin, H. M., & Mohamed, E. K. (2016). Auditors' perceptions of the impact of continuous auditing on the quality of Internet reported financial information in Egypt. Managerial Auditing Journal, 31(1), 111-132. Available at: https://doi.org/10.1108/maj-01-2014-0989.

Arnold, V., Bedard, J. C., Phillips, J., & Sutton, S. G. (2009). The impact of information tagging in the MD&A on investor decision making: Implications for XBRL. Paper presented at the Working Paper, 2009 Accounting, Behavior and Organizations Conference.

Azleen, I., & Ghani, E. K. (2015). Examining the adoption of extensible business reporting language among public listed companies in Malaysia. Procedia Economics and Finance, 28, 32-38. Available at: https://doi.org/10.1016/s2212-5671(15)01078-3.

Birt, J. L., Muthusamy, K., & Bir, P. (2017). XBRL and the qualitative characteristics of useful financial information. Accounting Research Journal, 30(1), 107-126. Available at: https://doi.org/10.1108/arj-11-2014-0105.

CFA Institute. (2018). XBRL survey report. Charlottesville: CFA Institute.

CFA Institute Market Intelligence. (2009). CFA institute member survey: XBRL November 2009. CFA Institute Market Research. Retrieved from http://www.cfainstitute.org/survey/xbrl_member_survey_report_2009.pdf

CFA Institute Market Intelligence. (2011). CFA institute member survey: XBRL December 2011. CFA Institute Market Research. Retrieved from http://www.cfainstitute.org/Survey/cfa_institute_member_survey_xbrl.pdf

CFA Institute Market Intelligence. (2016). CFA institute member survey: XBRL December 2011. CFA Institute Market Research. Retrieved from https://www.cfainstitute.org/survey/survey_extensible_business_reporting_language_xbrl.pdf

Chen, Y.-C. (2012). A comparative study of e-government XBRL implementations: The potential of improving information transparency and efficiency. Government Information Quarterly, 29(4), 553-563. Available at: https://doi.org/10.1016/j.giq.2012.05.009.

Coffin, Z. (2001). The advent of real-time accounting. The Practical Accountant, 34(8), 48-49.

Cong, Y., Du, H., & Feng, J. (2008). Does web syndication technology facilitate investor decision making? Journal of Emerging Technologies in Accounting, 5(1), 143-159. Available at: https://doi.org/10.2308/jeta.2008.5.1.143.

Cordery, C. J., Fowler, C. J., & Mustafa, K. (2011). A solution looking for a problem: Factors associated with the non-adoption of XBRL. Pacific Accounting Review, 2(1), 69-88. Available at: https://doi.org/10.1108/01140581111130634.

Cox, C. (2006). Speech by SEC Chairman: The promise of interactive data. Paper presented at the 14th International XBRL Conference Philadelphia, Pennsylvania.

Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-340. Available at: https://doi.org/10.2307/249008.

Dunne, T., Helliar, P. C., Lymer, A., & Mousa, R. (2009). XBRL: The views of stakeholders. Reserch Report. The Association of Chartered Certified Accountants.

El Alfy, S., Gómez, J. M., & Ivanov, D. (2017). Exploring instructors’ technology readiness, attitudes and behavioral intentions towards e-learning technologies in Egypt and United Arab Emirates. Education and Information Technologies, 22(5), 2605-2627. Available at: https://doi.org/10.1007/s10639-016-9562-1.

Erdoğmuş, N., & Esen, M. (2011). An investigation of the effects of technology readiness on technology acceptance in e-HRM. Procedia-Social and Behavioral Sciences, 24, 487-495. Available at: https://doi.org/10.1016/j.sbspro.2011.09.131.

Felden, C. (2011). Characteristics of XBRL adoption in Germany. Journal of Management Control, 22(2), 161-186. Available at: https://doi.org/10.1007/s00187-011-0134-7.

Ghani, E. K., Said, J., & Muhammad, K. (2014). Enhancing corporate governance via XBRL: Preparers’ perception on compatibility expectation. Procedia-Social and Behavioral Sciences, 145, 308-315. Available at: https://doi.org/10.1016/j.sbspro.2014.06.039.

Goswami, S., & Chouhan, V. (2015). An analysis of XBRL adoption in India using technology acceptance model. The IUP Journal of Information Technology, 11(3), 47-61.

Hodge, F. D. (2001). Hyperlinking unaudited information to audited financial statements: Effects on investor judgments. The Accounting Review, 76(4), 675-691. Available at: https://doi.org/10.2308/accr.2001.76.4.675.

Hoffman, C. (2006). Financial reporting using XBRL: IFRS and U.S (GAAP ed.). Redwood City, CA: UBMatrix. Inc.

Hutton, E., Goldstein, J., & Piemonte, M. (2013). The adoption of XBRL reporting: Implications for industry and education. The BRC Academy Journal of Education, 3(1), 49-68.

Ilias, A. (2017). The practitioner's expectation of real-time reporting: Case of the eXtensible business reporting language (XBRL). Global Business & Management Research, 9(3), 1.

Ilias, A., Ghani, E. K., & Azhar, Z. (2017). XBRL adoption in Malaysia: Perception of the accountants and auditors. Paper presented at the International Conference on Accounting Studies (ICAS) 2017. Putrajaya: The Authors.

Ilias, A., Razak, M. Z. A., & Rahman, R. A. (2015). How potential adopters in Malaysia perceive the relative advantage of eXtensible business reporting language (XBRL). Paper presented at the International Conference on Accounting Studies (ICAS).

Ilias, A., Razak, Z. M. A., & Razak, S. F. F. A. (2015). The awareness of the extensible business reporting language (XBRL) in Malaysia. The Journal of Internet Banking and Commerce, 19(2), 1-26.

Indrit, T., & Rao, S. (2007). Drivers and inhibitors to XBRL adoption: A qualitative approach to build a theory in under-researched areas. International Journal of E-Business Research, 3(4), 98-111. Available at: https://doi.org/10.4018/jebr.2007100106.

Janvrin, D. J., & No, W. G. (2012). XBRL implementation: A field investigation to identify research opportunities. Journal of Information Systems, 26(1), 169-197. Available at: https://doi.org/10.2308/isys-10252.

Janvrin, D. J., Pinsker, R. E., & Mascha, M. F. (2013). XBRL-enabled, spreadsheet, or PDF? Factors influencing exclusive user choice of reporting technology. Journal of Information Systems, 27(2), 35-49. Available at: https://doi.org/10.2308/isys-50569.

Lai, M. L. (2008). Technology readiness, internet self-efficacy and computing experience of professional accounting students. Campus-Wide Information Systems, 25(1), 18-29. Available at: https://doi.org/10.1108/10650740810849061.

Lin, C. H., Shih, H. Y., & Sher, P. J. (2007). Integrating technology readiness into technology acceptance: The TRAM model. Psychology & Marketing, 24(7), 641-657. Available at: https://doi.org/10.1002/mar.20177.

Ling, L. M., & Moi, C. M. (2007). Professional students ‘technology readiness, prior computing experience and acceptance of an e-learning system. Malaysian Accounting Review, 6(1), 85-100.

Miller, R. (2008). XBRL–the benefits are clear, but challenges remain. Accounting Today, 22(17), 24-26.

Naidu, A., & Sainy, R. (2018). Does technology readiness predict banking self service technologies usage in India? International Journal of Electronic Banking, 1(2), 129-149. Available at: https://doi.org/10.1504/ijebank.2018.095597.

Nel, G., & Steenkamp, L. (2008). An exploratory study of chartered accountants' awareness and understanding of XBRL. Meditari: Research Journal of the School of Accounting Sciences, 16(1), 79-93. Available at: https://doi.org/10.1108/10222529200800005.

Nugroho, M. A. (2015). Impact of government support and competitor pressure on the readiness of SMEs in Indonesia in adopting the information technology. Procedia Computer Science, 72, 102-111. Available at: https://doi.org/10.1016/j.procs.2015.12.110.

Panday, R. (2018). The effect of technology readiness on technology acceptance in using services delivery of academic information system. Paper presented at the 12th Ubaya International Annual Symposium on Management.

Parasuraman, A. (2000). Technology Readiness Index (TRI) a multiple-item scale to measure readiness to embrace new technologies. Journal of Service Research, 2(4), 307-320. Available at: https://doi.org/10.1177/109467050024001.

Parasuraman, A., & Colby, C. L. (2015). An updated and streamlined technology readiness index: TRI 2.0. Journal of Service Research, 18(1), 59-74. Available at: https://doi.org/10.1177/1094670514539730.

Pinsker, R. (2003). XBRL Awareness in auditing: A sleeping giant? Managerial Auditing Journal, 18(9), 732-736. Available at: https://doi.org/10.1108/02686900310500497.

Pinsker., R., & Wheeler, P. (2009). Nonprofessional investors' perceptions of the efficiency and effectiveness of XBRL-enabled financial statement analysis and of firms providing XBRL-formatted information. International Journal of Disclosure and Governance, 6(3), 241-261. Available at: https://doi.org/10.1057/jdg.2009.6.

Pinsker.., R. (2008). An empirical examination of competing theories to explain continuous disclosure technology adoption intentions using XBRL as the example technology. The International Journal of Digital Accounting Research, 8(14), 81-96.

Pollock, K. S., & Papiernik, J. C. (2001). XBRL: A new common language for business information reporting. Ohio CPA Journal, 60(1), 38-38.

Raisinghani, M. S. (2005). An Interview with Mike Willis CPA and founding Chairman of extensible business reporting language (XBRL) international steering committee and a partner at pricewaterhouse coopers. Journal of Global Information Technology Management, 8(1), 64-69. Available at: https://doi.org/10.1080/1097198x.2005.10856391.

Ramen, M., Jugurnath, B., & Ramhit, P. (2015). UTR-CTOE: A new paradigm explaining CAATs adoption. Journal of Modern Accounting and Auditing, 11(12), 615-631. Available at: https://doi.org/10.17265/1548-6583/2015.12.001.

Rawashdeh, A., & Selamat, M. H. (2013). Critical success factors relating to the adoption of XBRL in Saudi Arabia. Journal of International Technology and Information Management, 22(2), 49-70.

Rosa, L. F., & Caserio, C. (2013). Are auditors interested in XBRL? A qualitative survey of big auditing firms in Italy. In Accounting information systems for decision making (pp. 13-45). Berlin, Heidelberg: Springer.

Sekaran, U., & Bougie, R. (2016). Research methods for business, a skill building approach. New York: John Willey & Sons. Inc.

Steenkamp, L., & Nel, G. (2012). The adoption of XBRL in South Africa: An emrerical study. The Electronic Library, 30(3), 409-425. Available at: https://doi.org/10.1108/02640471211241672.

The Institute of Chartered Accountants in England and Wales (ICAEW). (2010). New reporting models for business. Retrieved from https://www.icaew.com/-/media/corporate/files/technical/financial-reporting/information-for-better-markets/ifbm/new-reporting-models-for-business-2010-version.ashx

Tie, R. (2005). XBRL: It's unstoppable. Journal of Accountancy, 200(2), 32.

Troshani, I., & Doolin, B. (2005). Drivers and inhibitors impacting technology adoption: A qualitative investigation into the Australian experience with XBRL. Paper presented at the Proceedings of 18th Bled eConference eIntegration in Action. Bled, Slovenia.

Troshani, I., & Doolin, B. (2007). Innovation diffusion: A stakeholder and social network view. Europian Journal of Innovation Management, 10(2), 176-200. Available at: https://doi.org/10.1108/14601060710745242.

Venkatesh, R., & Armitage, J. (2012). Accountants' awareness and pereption about assurance on XBRL financial statements. The Journal of Applied Business Research, 28(2), 145-155. Available at: https://doi.org/10.19030/jabr.v28i2.6838.

Walczuch, R., Lemmink, J., & Streukens, S. (2007). The effect of service employees’ technology readiness on technology acceptance. Information & Management, 44(2), 206-215. Available at: https://doi.org/10.1016/j.im.2006.12.005.

Wulandari, S. S., & Ali, S. (2019). Incorporating XBRL topics into the accounting curriculum: Empirical evidence from Indonesia. Accounting Education, 28(6), 597-620. Available at: https://doi.org/10.1080/09639284.2019.1679205.

XBRL International. (2019). An introduction to XBRL. Retrieved from https://www.xbrl.org/ .

Statistics:

Google Scholor ideas Microsoft Academic Search bing Google Scholor

Funding:

Authors wish to thank the Universiti Tenaga Nasional Malaysia and Universiti Teknologi MARA for their support and funding.

Competing Interests:

The authors declare that they have no competing interests.

Acknowledgement:

All authors contributed equally to the conception and design of the study.

Related Article