Colonial recently performed a side by side analysis of XBRL in 10-Q and 10-K filings submitted by our competitors. The analysis presents two examples where incorrect tags were placed and the potential remedies. Each example included different inconsistencies at different locations within the financial statements.
As shown in the analysis, there could be many tags that are either unnecessary or incorrect. This type of oversight can come back to haunt public companies if they receive comment letters from the SEC. Moreover, investors, analysts, auditors, and creditors may be skeptical about the quality of the rest of the filing. The oversight of incorrectly placing tags is something you will not have to worry about as a Colonial client.
In order for XBRL to be effective, we believe that filing agents and public companies need to work together to ensure that the XBRL data generated is accurate and complete. It is also imperative that filing agents have the necessary expertise and knowledge of current best practices expected by the SEC, AICPA, and FASB.
Our Focus is on Accurate Filings
We believe that it is important for smaller reporting companies to have quality error-free filings as they continue to draw investors to their business and philosophy. Since XBRL will be implemented continuously in the future, smaller reporting companies will need to make certain that their filings are continuously evolving while remaining compliant with the regulations set forth by the SEC.
In the wake of the adversity of XBRL filings, Colonial will continue to offer the following pillars of value and service to our clients:
Validated XBRL files that are reviewed by our XBRL experts as well our staff with accounting expertise, education, and experience;
Efficient turnaround conversion times of filings in order for your organization to review before filing; and
Properly formatted filings with a professional image that will attract the attention of investors and analysts while remaining compliant with the SEC.
Colonial will continue to monitor SEC Staff Observations, FASB guidance, and regulations set forth by the SEC, AICPA, and U.S. G.A.A.P. We are confident that you will avoid any unexpected surprises in regards to XBRL Filings as we will inform you about any new developments and/or practices from the SEC and XBRL U.S.