14 May 2008

SEC proposes XBRL standard for financial information disclosure

The SEC proposes using XBRL technology for company’s financial information. The first interactive data would be made public in early 2009. Companies using IFRS would provide this disclosure for fiscal periods ending in late 2010.

The SEC proposes using XBRL technology for company’s financial information. The proposed rule would require all U.S. companies to provide financial information using interactive data beginning next year for the largest companies, and within three years for all public companies.

 

The proposed schedule would require companies using US GAAP with a worldwide public float over US$ 5 billion to make financial disclosures using interactive data formatted in XBRL for fiscal periods ending in late 2008.

 

If adopted, the first interactive data provided under the new rules would be made public in early 2009. The remaining companies using US GAAP would provide this disclosure over the following two years.

 

Companies using IFRS as issued by the IASB would provide this disclosure for fiscal periods ending in late 2010. The disclosure would be provided as additional exhibits to annual and quarterly reports and registration statements. Companies also would be required to post this information on their websites.

 

The interactive data tags uniquely identify individual items in a company's financial statement. “It would transform financial disclosure from a 1930s form-based system to a truly 21st century model that taps the power of technology for the benefit of investors”, SEC Chairman Christopher Cox said.

 

Public comment on the proposed rule should be received by the Commission no later than 60 days after its publication.

 

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