SEC lings. These new exhibits will be in the eXtensibleBusinessReportingLanguage (XBRL) format. XBRL exhibits will include a company’s nancial statements, footnotes and schedules in a computer language that tags each item in the nancial statements so that computers can “understand” the content and context of those nancials. This will assist the SEC in their ability to analyze and monitor the overwhelming amount of information that SEC registrants le annually.
The rst wave of lers was mandated to begin submitting XBRL exhibits on June 15, 2009. This wave of Large Accelerated Filers - numbering more than 475 companies - has now been submitting XBRL for almost one year. After June 15, 2010, the second wave of lers - all remaining Large Accelerated Filers - will be required to begin submitting XBRL exhibits. To complete the
A computer language
that tags each item
in the nancial
statements so that
content and context of
reporting around the world. It provides major benefts in the preparation, analysis and communication o business inormation. It oers cost savings, greater efciency and improved accuracy and reliability to all those involved in supplying or using fnancial data. It is an open standard, ree o license ees, being developed by a non-proft making international consortium.”
The above excerpt is taken fromwww.xbrl.us, the U.S. jurisdiction of the international non-prot consortium dedicated to the development, promotion and implementation of this global open standard. Many regulators, exchanges and other organizations have already mandated XBRL or are on the path towards requiring nancial information to be “tagged” in XBRL.
Since XBRL is an open standard (non-proprietary) and regulators are requiring compliance documentation in this format, there is no doubt XBRL will become the standard format for communicating nancial information.
Essentially, every number in a nancial statement will have an associated code or tag assigned to it. This tag will include the accounting denition and its attributes – l.e., is the number a credit or debit, an instance or duration value, identies the calculation relationship to other items in the report and the context of the value including the time period.
central banks and governments
• Filing of loan reports and applications; credit risk assessments
• Exchange of information between government departments or between other institutions,
XBRL increases the usability of nancial statement information. The need to re-key nancial data for analytical and other purposes can be eliminated. By presenting its statements in XBRL, a company can benet investors and raise its prole. It will also meet the requirements of regulators, lenders and others consumers of nancial information, who are increasingly demanding reporting in XBRL. This will improve business relations and lead to a range of benets.
Since XBRL is an
and regulators are
this format, there
is no doubt XBRL
will become the
Once a company is required to comply with the SEC’s XBRL mandate, they must submit these new exhibits with their Annual and Quarterly reports, transition reports and registration statements. These exhibits will reect the primary nancial statements, the notes to the nancial statements and the schedules. Highlights of the SEC’s Final Rules for the XBRL mandate:
The SEC’s mandate requires that a company include in its XBRL exhibits their nancial statements and the footnotes and schedules tagged with XBRL. For the rst 12 months, a company has to tag the footnotes and schedules as individual elements. This is referred to as “block tagging.” For example, the Signicant Accounting Policy footnote would be included in the XBRL exhibits as a single block with two tags associated with it.
a single block o text;
(iii) each table within each ootnote tagged as a separate block o text; and
(iv) within each ootnote, each amount (i.e., monetary value, percentage and number) separately tagged.
To allow flers time to become amiliar with tagging ootnotes, in each fler’s frst year o interactive data reporting, only level (i) will be required. All our levels will be required starting one year rom the fler’s initial required submission in interactive data.”
The SEC’s mandate
requires that a
company include in
its XBRL exhibits their
and the footnotes and
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