The future of International Financial Reporting Standards in light of digitalization and XBRL technology "A theoretical, analytical, and forward-looking study"

Abstract

This study aims to identify the future of IFRS in the light of digitization and the technology of the (extensible Business Reporting Language) XBRL, and to achieve the objectives of the study, descriptive analytical-forward-looking approach was used by reviewing the literature of previous studies, analyzing international reports issued by the IFRS Foundation, in addition to the data of the International Organization for the language of extended business reports XBRL international, and a number of professional and regulatory bodies .

The study has reached many conclusions, the most important of which is that the future of IFRS is linked to its ability to transform into an integrated data-based digital model, so that reports become amenable to automated processing and immediate analysis. The study also found at there is a clear progression in the adoption of XBRI technology by countries, as the developed countries (the United States, the United Kingdom, the European Union and Germany) have adopted XBRL technology within binding regulatory frameworks, supported by a developed infrastructure, which positively reflects on the quality of reporting, speed of disclosure, and international comparability. As for the emerging countries, (BRICS countries, Arab countries Jordan, Egypt and the United Arab Emirates) have adopted XBRL technology to an average degree because it is still in varying stages of adoption. The study also found that the benefits achieved from the use of digitization and XBRL technology are to improve the quality of Financial Information, reduce human errors, enhance transparency, and educe information asymmetry, Nile the challenges resulting from the use of digitization and XBRL technology are to improve the quality of Financial Information, reduce human errors, enhance transparency, and reduce information asymmetry, while the challenges resulting from the use of digitization and XBRL technology are not limited to the technical side only, but extend to the high initial cost of digital transformation, the lack of professional competencies specialized in digital reporting, and resistance to change within organizations.

In light of this, the study concluded that benefiting from international experiences in the application of digitization and XBRL technology can significantly contribute to the development of the Financial Reporting System in Libya, and this requires adopting an integrated strategy that includes the development of legislation, improving digital infrastructure, building professional capacities, enhancing the role of regulatory authorities, in addition to developing accounting education in line with the requirements of digital transformation.

The study concluded several recommendations, the most important of which was the need to adopt a comprehensive digital transformation strategy that is not limited to regulatory compliance, but invests in the development of integrated financial information systems that support real-time data analysis, thus enhancing competitiveness and transparency to investors.

The study concluded several recommendations, the most important of which was the need to adopt a comprehensive digital transformation strategy that is not limited to regulatory compliance, but invests in the development of integrated financd cial information systems that support real-time data analysis, thus enhancing competitiveness and transparency to investors.