Written by wordpress627 on June 25, 2018
SEC to vote this week on mandatory Inline XBRL. Our clients are X3RL-ready
Two years ago, the Securities and Exchange Commission (SEC) announced that public companies had the option to file their Forms 8-K, 10-Q, 10-K, 20-F and 40-F in a financial disclosure format known as Inline XBRL, also referred to as iXBRL.
iXBRL is the merging of two distinctly different document formats – machine-readable XBRL and “people-readable” HTML into a single document. Currently, the SEC requires that corporate issuers file their financial reports with the SEC in both XBRL and HTML.The SEC originally proposed the mandatory use of Inline XBRL for operating companies’ financial statement information in March 2017. That did not happen, so they are voting again this week.
iXBRL solves many existing problems in terms of consistency and accuracy, holistically across the pair of XBRL documents.
The benefits are huge and obvious. As regular XBRL requires separate reporting, it created a significant duplication of work for auditors and filers – as well as gaps in logic. iXBRL eliminates the separation between traditional HTML and new XBRL formats.
For our clients, this transition can be a seamless transition, driven by our third-generation XBRL SaaS program, X3RL. Eliminating the duplicate tasks of reviewing, editing and approving the same financial information on two different documents is clearly the right step in the evolution of structured data reporting and for the X3RL program.
Since the SEC says that companies should really be focusing on the quality of the data, having the XBRL embedded into the HTML financial filing could free up companies from making sure the statement was rendering on the previewer in the same way as the HTML, and instead focus on appropriate tagging. iXBRL can help them embrace and streamline that review process, since there will no longer be two separate documents to compare and try to identify the differences between them.