Program Will Provide “Combined Data Sets” for Use by Investors and Analysts
In December, the SEC announced the unveiling of a program that will allow investors and analysts to have an easier time analyzing financial statements using XBRL.
The data that public companies provide via XBRL will be pooled into structured data sets for external users. These data sets will include data from financial statements filed in XBRL exhibits as well as data in the accompanying footnotes to the financial statements.
This pilot program is another measure used by the SEC to monitor the quality of tagging and structure of XBRL filings from public companies. The SEC has also been closely monitoring the quality of filings since the expiration of the limited liability clause and the subsequent comment letters sent to certain companies.
SEC Issues Observations and Comment Letter
Last summer, the SEC began issuing comment letters to companies regarding the requirement of calculation relationships within their filings. The letter notes that the SEC has uncovered a variety of compliance issues in reporting calculations. Lastly, the SEC reminds filers that acceptance of their filings by the EDGAR system does not mean that the filing is in compliance with regulations. We recommend that filers view the EDGAR Filer Manual for more information regarding XBRL calculation regulations.
The SEC observed the rates of custom tags used in XBRL filings. The SEC concluded that smaller filers tend to have a custom tag rate nearly 50% greater than larger filers. This is an area of concern for the SEC as they believe that smaller filers should have simpler financial statements which should allow for straightforward tagging.
Quality Filings are Our Priority
At Colonial, our accounting and technical experts are specially trained in the GAAP and Risk & Return taxonomies to provide best practices in tagging of your XBRL documents. We are continually implementing new measures to enhance the quality of your XBRL filings while providing extraordinary service and results that sets us apart from the competition.