To explain XBRL simply, she said, "Investors need access to timely, relevant and accurate financial and business information. Most of this information originates with the companies whose stocks they own. For the capital markets to operate most efficiently, information about public companies must be understandable, accessible, accurate and most importantly, trusted by market participants." One of the biggest roadblocks is that this information is provided in many different proprietary data formats, making it difficult to access, integrate and analyze this information in a timely, complete and accurate manner. Extracting information from financial and business reports can be a frustrating experience. Moreover, the format and media on which financial and business reporting data are authored varies widely. Each publishing format has its limitations and they can only be interpreted by manual human processing. "XBRL is the solution to all that," she said. An open data standard for financial reporting, it allows information modeling and the expression of semantic meaning commonly required in business reporting. It is standards based way to communicate business and financial information. It is a technical supply chain standard for moving financial and business reporting information into an interactive intelligent information format.

Watson explained, "XBRL works like bar codes. It helps in translating, disseminating and analyzing piles of business information, thus eliminating the possibility of human error. The cost of information exchange is very high. Companies invest huge amount of money in analysis but small-cap companies can’t afford to do so. Also, it is very time-consuming. Since their information is not listed as per global standards for financial business reporting, these small companies don’t get noticed and lose out on a lot. With XBRL, we are set to change all that."

In the USA, reporting in XBRL has already been mandated. With India finally stepping aboard and matching steps with over 40 countries that have already accepted XBRL, the scope for change is immense. "India is still lagging behind and needs to think about enhancing skills. We have to understand the importance of providing financial information as per global standards. If the banks, regulators or companies don’t comply by these standards, they are bound to drop off the radar screens. Those markets which increase transparency through XBRL will benefit from greater liquidity and a lower cost of capital," she said.

XBRL is here to stay and Reserve Bank of India and SEBI are seriously considering adapting to it. "At local levels too, this programme can be very useful. The Central Government gives lot of funds to local municipal bodies for development.

This programme can help clean up their systems, bring transparency and help in the application of useful information. It will help the banks and local bodies report to the government for improved investor relations," she said.

XBRL separates useful, discoverable information from applications like Excel sheets and thus unlocks data to make it available for needy persons world over. Analysts and investors will be able to perform much more sophisticated benchmarking analysis comparing companies’ financial and market performance. Executives will be able to do the same with their performance vis-a-vis their major competitors. She signs off saying, "It is time India too catches up"

Watson has traveled to over 85 countries and is the vice-chairperson of XBRL Inter-national,  a non-profit organization. IRIS, a global leader in business and financial information products, data feeds and XBRL-enabled technology solutions recently appointed Liv Watson to its Board of Directors to provide impetus for its XBRL business.