Taxonomy updates? We got your back

Choose DataTracks for SEC XBRL reporting and forget about taxonomy versions

Compliance reporting requirements are today, subject to constant evolution given the dynamic nature of business and technology. This creates a need for companies and governments alike to be agile so they can deal with the challenge of constant change head-on.

Regulatory authorities strive to make disclosures reflect the latest developments in the industry. Similarly, companies ensure that they upgrade with the right tools and workforce to comply with these changes.

Guidance Documents

XBRL International fully recognizes this need and has thus published two new guidance documents describing best practices for companies to manage changes to compliance rules, specifically changes in taxonomy used. These machine-readable tags (taxonomy) are regularly updated to reflect key financial accounting concepts and relationships as they evolve with the business landscape. Hence, it becomes imperative for involved stakeholders to account for tools and human resources that can help the transition to new taxonomy versions.

XBRL International intends to support this with guidance on best practices so that the transition unfolds smoothly. The first piece of guidance, How to communicate changes between taxonomy versions, is intended to help taxonomy authors and architects communicate the changes to users effectively. This is expected to help stakeholders understand the impact of changes and plan actions accordingly.

The second piece of guidance, How to manage taxonomy versioning, helps navigate the process of managing taxonomy version updates.

Coping up with the changes

Despite this guidance, companies still find it challenging to adopt changes within the existing business process. Technical tool upgrades take time, and employees often need training or knowledge-building sessions to adopt new taxonomies.
Management decisions that reflect long-term, durable value should be taken for an organization’s regulatory reporting process to run like a well-oiled machine.

SEC XBRL Software

Many industry-leading organizations turned to compliance software run and managed by regulatory experts, such as Rainbow – DataTracks’ cloud-based solution for automated preparation of compliance & regulatory reports.

With a software like Rainbow, there is minimal to no intervention required when taxonomy updates are announced. DataTracks experts have enabled this cutting-edge solution to automatically install the latest taxonomy updates as and when released.

DataTracks’ Rainbow is, without a doubt, a real game changer in streamlining compliance processes. Aside from auto taxonomy updates, it helps an organization save time, reduce risks and produce error-free compliance reports while offering financial statements in multiple output formats like XBRL, Inline XBRL, and EDGAR & xHTML for filing with SEC.

DataTracks Rainbow connects your entire team with a few clicks and offers you endless possibilities to convert your annual 10Ks, quarterly 10Qs, as well as other SEC filings to comply with a variety of disclosure requirements.

So what are you waiting for? Request some time to talk to our XBRL champions and get started on your seamless SEC reporting journey!