Enhancing Company Financial Transparency for Contractor Selection Process through XBRL: A Conceptual Framework

Abstract

Amongst the predicament in selecting a contractor for project implementation is to identify a resilient partner who can withstand the financial impact posed by project risks and constraints. For that matter, decision-makers require full transparency of financial information of the candidates for an effective contractor selection process. In the context of Malaysia, authorities are adopting Extensible Business Reporting Language (XBRL) to convey information about companies financial standing. This study is aimed to develop a conceptual framework in utilising the increase of information brought along by XBRL implementation to facilitate transparency as required by decision-makers during the contractor selection process. This article is also articulating on factors to promote adoption of online business reporting to increase information integrity, recency and contextually to increase the transparency.