Under XBRL every financial data has its identifying tag, which is computer readable. SO instead of having data as text, it is stored as a tag. Computer can read it, store it, analyze it, and present it in different forms. It will make not just intra company analysis easy, but facilitate inter company analysis. This is how: if the tag for Net Income is same for all companies, as is the case in XBRL, then the computer can generate a report analyzing the Net Income tag for one company against its competitors, other companies in different industries, suppliers, buyers, etc…It can compare data of not just national players but also international players.
The tags provide a range of information about the item, such as whether it is a monetary item, percentage or fraction. XBRL allows labels in any language to be applied to items, as well as accounting references or other subsidiary information.
XBRL can show how items are related to one another. It can thus represent how they are calculated. It can also identify whether they fall into particular groupings for organizational or presentational purposes. XBRL is easily extensible, so companies and other organizations can adapt it to meet a variety of special requirements.