The Impact of Applying the XBRL on the Quality of Annual Reports of the Firms Listed in Amman Stock Exchange

Abstract

This study dealt with the Extended Business Reporting Language ‘its definition ‘and its importance. The study aimed to know the impact of applying the Extensible Business Reporting Language (XBRL) on the quality of annual financial reports from external auditors' view ‘for public shareholding companies listed on the Amman Stock Exchange. To achieve the objective of the study ‘the researcher has distributed questionnaires to (395) of the external auditors, and the number of responded of the questionnaire (179). In this study ‘‘the researcher used a set of statistical methods in the SPSS. Among the findings of this study there is knowledge to external auditors towards the application of Extensible Business Reporting Language, and that there is an impact of the applying Extensible Business Reporting Language on the quality of annual financial reports. In addition, there is an effect of applying Extensible Business Reporting Language on the dimensions of the quality of the annual financial reports, such as financial and non-financial data, in addition to transparency and reliability, as well as its impact on reducing the costs of information dissemination. In addition, this study recommended to management of ASE to continue preparing workshops and training courses for external auditors to raise awareness of the disclosure using the Extensible Business Reporting Language. In addition, the commitment of companies listed on the ASE to disclose all its data using the Extensible Business Reporting Language, because it has significant impact to raising the level of quality of annual financial reports. Finally, increasing the studies and research on the topic of Extensible Business Reporting Language from researchers due to the importance of this area, and its recent applied in Jordan.