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Business Wire White Paper - XBRL Next Steps: What You Need to Know for 2010 and Beyond

Business Wire White Paper - XBRL Next Steps: What You Need to Know for 2010 and Beyond

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Published by IR Global Rankings
Overview - 2010 is a significant year for the Securities & Exchange Commission's (SEC) XBRL mandate. It is the second year of a three-year phased-in schedule that will require all public companies to begin submitting additional exhibits with certain SEC filings. These new exhibits will be in the eXtensible Business Reporting Language (XBRL) format.
Overview - 2010 is a significant year for the Securities & Exchange Commission's (SEC) XBRL mandate. It is the second year of a three-year phased-in schedule that will require all public companies to begin submitting additional exhibits with certain SEC filings. These new exhibits will be in the eXtensible Business Reporting Language (XBRL) format.

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Published by: IR Global Rankings on Aug 03, 2010
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02/02/2013

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XBRL Next Steps –
What you need to know
for 2010 and beyond
Overview
2010 is a signicant year for the Securities & Exchange Commission’s (SEC) XBRL mandate. It is the second year of a
three-year phased-in schedule that will require all public companies to begin submitting additional exhibits with certain

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

phased-in schedule, all remaining companies will be required to begin submitting XBRL exhibits after June 15, 2011.
The following is a chart of the SEC’s phase-win schedule.
Per the SEC’s Interactive Data to Improve Financial Reporting Final Rules, page 41:
http://www.sec.gov/rules/nal/2009/33-9002.pdf

A computer language
that tags each item
in the nancial
statements so that
computers can
“understand” the
content and context of
those nancials.

White PaPer
+1.888.761.5129 | www.BusinessWire.com
What do I need to know about XBRL?
“XBRL is a language or the electronic communication o business and fnancial data which is revolutionizing business

reporting around the world. It provides major benefts in the preparation, analysis and communication o business inormation. It oers cost savings, greater efciency 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-prot 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 denition and its attributes – l.e., is the number a credit or debit, an instance or duration value, identies the calculation relationship to other items in the report and the context of the value including the time period.

What are the potential uses o XBRL?
XBRL can be applied to a very wide range of business and nancial data. Among other things, it can handle:
Company internal and external nancial reporting
Business reporting to all types of regulators, including tax and nancial authorities,

central banks and governments
Filing of loan reports and applications; credit risk assessments
Exchange of information between government departments or between other institutions,

such as central banks
Authoritative accounting literature - providing a standard way of describing accounting
documents provided by authoritative bodies.
A wide range of other nancial and statistical data, which needs to be stored, exchanged and analyzed.
What are the benefts to a company who converts its fnancial statements into XBRL ormat?

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 benet investors and raise its prole. 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 benets.

2

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.

White PaPer
+1.888.761.5129 | www.BusinessWire.com
What is the SEC requiring?

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 reect 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 Rules apply to domestic and foreign companies using U.S. GAAP and in 2011 to foreign private issues
using IFRS (as issued by IASB)
The XBRL exhibits are deemed “furnished” and supplement to the ofcially deemed led documents led in
the HTML or ASCII formats
XBRL exhibits have a limited liability protection within 24 months of the time the ler is rst required to submit
XBRL. Additionally, the limited liability provision will terminate completely on Oct. 31, 2014
A company is required to post these XBRL les on their corporate web site

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 Signicant Accounting Policy footnote would be included in the XBRL exhibits as a single block with two tags associated with it.

Twelve months after a company has begun to submit XBRL exhibits the rules require additional
information in the footnotes and schedules to be tagged with XBRL codes.
Per the SEC’s Interactive Data to Improve Financial Reporting Final Rules, page 59:
http://www.sec.gov/rules/nal/2009/33-9002.pdf
“We are thereore adopting the requirement that ootnotes be tagged using our dierent levels o detail:
(i) each complete ootnote tagged as a single block o text;
(ii) each signifcant accounting policy within the signifcant accounting policies ootnote tagged as

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.”

3

The SEC’s mandate
requires that a
company include in
its XBRL exhibits their
nancial statements
and the footnotes and
schedules tagged
with XBRL.

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