Tag Archives: XBRL

The SEC Speaks – XBRL in Focus!

8 Sep
By: Nicole E. York

The SEC Staff Issues Comment Letters

Since the inception of XBRL in 2009, the goal of the SEC has been to create a uniform system that would become a tool for investors to compare and analyze company financial statements. A phase-in period was afforded to companies that would need time to adjust to a system that came with certain labor and financial burdens, especially for smaller reporting companies. This grace period has long since come to an end, and for a while, the only noise regarding compliance came from certain filing agents attempting to drum up business by pointing out errors in XBRL files.  Now the SEC has begun to weigh in on irregularities, and errors in XBRL submissions, beginning with a comment letter sent to certain public companies in July 2014.  In that letter, a sample of which the SEC has posted at http://www.sec.gov/divisions/corpfin/guidance/xbrl-calculation-0714.htm, the SEC highlighted two common XBRL errors – calculation relationships and custom element data tagging.

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Smaller Reporting Companies – The Current Regulatory Pipeline

1 Nov
By: Daniel W. Rumsey

Get Ready for XBRL

The requirement to comply with the SEC’s new rules requiring public companies to use interactive data for financial information is soon going to directly impact smaller reporting companies – those public companies with a market capitalization of $75 million or less.  The rules require public companies to file their financial statements, footnotes, and financial statement schedules in the new XBRL format.  Smaller reporting companies won’t be required to comply with the rules until 2011, beginning with fiscal years ending on or after June 15, 2011.   Unlike other initiatives impacting smaller reporting companies, including compliance with certain SOX requirements (see below), smaller reporting companies are not likely to get any breaks or sympathy from Congress in complying with the XBRL filing requirement.  The demand for interactive data is too great, and no group has surfaced to effectively challenge the burden imposed on smaller reporting companies by the new rules.  As a result, smaller reporting companies are once again going to have to bear additional financial and other costs to remain public, although the burdens are certainly going to be less than other initiatives. Read on…

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