In Canada, IFRS first, XBRL second

XBRL will allow financial information to be extracted from an issuer's financial statements and compared instantaneously. This will potentially save analysts, regulators and other users considerable time, while creating a level playing field in terms of information access.

So why do Canadian security regulators appear to be taking a wait-and-see approach to mandating the use of XBRL?

Well, it really is a matter of timing. TSX and TSX-Venture listed companies are preoccupied with the challenges of converting to international financial reporting standards (“IFRS”) by the start of 2011.

According to James Turner, Vice Chairman of the Ontario Securities Commission, "Canadian regulators shouldn't require the adoption of XBRL before IFRS is implemented in Canada. From our point of view, the right sequence of events for our capital markets is first to make the transition to IFRS then adopt XBRL as a mandatory requirement."

In the meantime, he encourages the voluntary use of XBRL across Canada.