CSE To Bring Game-Changing XBRL System for Financial Reporting

COLOMBO (News 1st); The Colombo Stock Exchange (CSE) plans to introduce the extensible Business Reporting Language (XBRL) system to automate the reporting of financial statements by listed companies. 

Dilshan Wirasekara, Chairman of the Colombo Stock Exchange (CSE), said that this initiative aims to standardize financial reporting to international standards, making the process more efficient for companies and more accessible for investors.

"One thing that we are trying to bring in is XBRL. That's a reporting system that would automate companies to report their financial statements. Listed companies have to report their financials on a quarterly basis. We are trying to standardize that to international standards and have that automated system where that would become more efficient and hopefully help the companies do the reporting, but more importantly help the investors to be able to have financials in one format in conformity to anyone else that you can analyze data, do valuations, etc., at a much easier sort of way," Wirasekara explained.

XBRL is a global standard for digital business reporting, making financial data easier to find, access, and analyze. 

This system will allow for more streamlined and accurate financial reporting, benefiting both companies and investors.

In addition to the XBRL implementation, Wirasekara mentioned plans to expand the CSE's depository services. "We are also looking at a depository. It's currently 100% on subsidiary. And we are looking at expanding it beyond just a depository that deals in the securities, both equity as well as debt," he said.

A depository is a financial institution that holds securities in electronic form, facilitating the trading of these securities and providing security and liquidity in the market. 

The expansion of the depository services will enhance the CSE's capabilities in managing both equity and debt securities, further supporting the growth of Sri Lanka's capital market.