Final answer:
XBRL is designed primarily to improve the efficiency of financial reporting by providing a standardized method for communicating business and financial data electronically, allowing for cost savings, greater efficiency, and improved reliability in financial reporting. The correct answer is option b.
Step-by-step explanation:
The component designed primarily to improve the efficiency of financial reporting is XBRL (eXtensible Business Reporting Language). XBRL is a language for the electronic communication of business and financial data which is revolutionizing business reporting around the world. It provides major benefits in the preparation, analysis, and communication of business information. It offers cost savings, greater efficiency, and improved accuracy and reliability to all those involved in supplying or using financial data.
XML (eXtensible Markup Language) is a flexible markup language that enables the creation of a variety of applications, while IFRS (International Financial Reporting Standards) are accounting standards intended to make financial statements consistent, transparent, and comparable across international boundaries. The Balanced Scorecard, on the other hand, is a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.