XBRL US comments on SEC’s proposal to file Form N-MFP using XML Format
The Proposal
The Securities and the Exchange Commission recently proposed that all the Form N-MFPs used by registered money market funds to report their portfolio holdings and other information to the US SEC will need to be filed using the XML format on a monthly basis.
File Form N-MFP using XML Format
This proposal was made under the Paperwork reduction act of 1995. This step will reduce the burden of hours involved in compiling the reports as the reports will be filed using the commission’s electronic filing system called ‘EDGAR’ in the proposed Extensible Markup Language. This proposal will reduce the cost burden of purchasing goods and services, aiding the information collection for Form N-MFP. Since this cost burden does not include the number of burden hours, both these factors calculated separately will support the proposal that requires the data to be filed using the XML format.
Comment by XBRL US
SEC opened the floor for suggestions and comments about their newest proposal, to which the XBRL US responded. XBRL US is a non-profit standards organization working towards enhancing the efficiency and quality of reporting in the US. They promote the adoption of business reporting standards. XBRL is a free and open data standard used Internationally for reporting by public and private companies and government agencies. XBRL US comes under the jurisdiction of XBRL International, a non-profit responsible for developing and maintaining the technical specifications for XBRL.
XBRL US suggested that the decision to propose the collection of Form N-MFP in a structured format is commendable. However, it believes that reporting will be much simpler and more efficient if XBRL-CSV is used instead of the current requirement of reporting using a custom XML format. Thus, suggesting a switch to the XBRL-CSV format from XML.
Form N-MFP reports the filer’s identity, the filing, and repetitive daily and weekly information about the fund. It contains rows and rows of information, segregated based on the day or week, on series-level and class-level funds. Keeping the volume of the data filed in mind, switching to an XBRL-CSV format will help reduce the file size the issuers need to report. The XBRL-CSV will also render the information machine-readable.
Preparation
The processes involved in preparing reports using the XBRL and XML formats are very different. With a custom XML format, the XML file needs the identifying tags to be created for every row as the ‘data model’ needs to be present in all the XML files prepared, which makes the process repetitive and tedious. An XBRL file, on the other hand, functions with the help of a taxonomy that contains the said data model. This feature ensures that the identifying tags need not be repeatedly referenced in every row, over and over again.
What is a file with rows and rows of data tagged in every row is merely a single line item in an XBRL file? Referencing the data model in the taxonomy instead of embedding the entire data model in every form file reduces the size of the file and the number of errors. It creates a more straightforward data management system for the filer and the consumer of that data. And because all the data filed in the XBRL format are structured the same way, it aids the cataloguing, inventorying, and retrieving of data from the databases.
Working with an iXBRL Expert
Filing data in a new format can sometimes be a challenge. DataTracks is equipped to handle all your compliant reporting requirements that need to be filed with the regulatory authority in your country using XML, XBRL, and Inline XBRL formats. The experts at DataTracks are skilled at producing quality, error-free services in a professional and time-sensitive manner. The DataTracks software is developed keeping in mind the nature of the regulatory requirements. With over 17 years of domain experience, DataTracks will only help you better your reporting structure with faster, better, and more efficient methods.