The advantages of reporting financial statements with XBRL and a taxonomy proposal

Because of the rapid technological developments companies reporting systems are mainly affected. XBRL, which was developed to meet companies? daily needs aims to standardize business reports. It is getting spread around the world and at the same time helps companies to prepare their financial reports in accordance with their qualitative characteristics.XBRL enables the financial information to be presented simultaneously on the internet. With XBRL, statements and other disclosures are computer readable. The use of standardized tags also enables investors and other users to employ search-facilitated technology to analyze data within and across companies, making the statements more transparent. XBRL makes financial reports more understandable, comparable, relevance and reliable.The main aim of this study is to explain the technical structure, aims and the advantages of the system that is called XBRL (Extensible Business Reporting Language), comparison of traditional financial reporting and evaluate the qualitative characteristics of its financial reports.The most important component of the XBRL is taxonomies. Taxonomies are the dictionaries used by XBRL, and they define the specific tags for individual items of data. In this study, we prepared a proposal taxonomy for the Turkey is intended to guide future studies on this issue.