ICGFM Promotes Knowledge Transfer Among Public Financial Management Experts

Working globally with governments, organizations, and individuals, the International Consortium on Governmental Financial Management is dedicated to improving financial management by providing opportunities for professional development and information exchange.

Wednesday, May 19, 2010

XBRL Work Shop at ICGFM Conference

Liv Watson managed an XBRL workshop at the 24th Annual Conference on Public Financial Management. This is a follow-up from her presentation XBRL: The Language of Government 2.0. Attendees to the conference were very interested in the use of XBRL in government. Ms. Watson encouraged attendees to read XBRL documents on-line.

Many countries do not mandate the use of XBRL. XBRL often becomes widely adopted according to Ms. Watson. Regulation sometimes follows adoption.

Global adoption drivers according to Ms. Watson include:
  • Economics to reduce administrative burden, support multiple languages easily
  • Support global standards and pressure from large international organizations
  • IFRS adoption and GAAP alignment
  • Support for capital market transparency
  • Alignment in regulatory consistency
  • Basel II banking supervision
  • Integrate with multiple standards such as ISO, W3C, Swift, OECD
The workshops identified many drivers for XBRL adoption in their countries:
  • Support frequent legislative changes, particularly for changes to reporting standards
  • Legislature or Ministry of Finance may drive adoption
  • Pressure from funding agencies for proper tracking
  • Improved budget planning
  • Support of decentralized reporting such as from municipalities to the central government
  • Improved data collection through standards in areas such as taxation, land registration
  • Integration of tax information with procurement processes
  • Ease of audit through supreme audit institutions
  • Encouragement from international organizations and development partners
  • Improved statistical information for regulators
  • Trade facilitation for regional and global trading organizations
  • Ease of business registration
  • Media and civil society may put pressure on governments
  • Globalization affect where countries that are more transparent will be seen as more stable for business
  • Demands for government transparency
  • Faster closing of government accounts and production of reports

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