Earlier last month the Securities and Exchange Commission (SEC) voted for Inline XBRL and also included the IFRS accounting standards in the EDGAR System. The new rule is likely to be made mandatory in early 2018. The primary objective of the ruling is to improve the quality of the structured XBRL data reported, and mandate XBRL for foreign issuers who use IFRS accounting standards; these foreign issuers had been earlier exempted from using XBRL as the acceptance of IFRS taxonomy was kept pending by the SEC. DataTracks welcomes SEC’s move towards Inline XBRL, a move that has been successfully implemented in the UK by HMRC, for tax filings for the past 5 years and more.
Public listed companies currently submit two sets of data to the EDGAR system, i.e. XBRL which is computer-readable & HTML which is human-readable. Inline XBRL would eliminate the additional effort required for preparing two documents, by embedding XBRL tags on the HTML document, thereby simplifying the entire process.
The proposed new rule will have a direct impact on all public listed companies across filing categories who currently prepare their 10-Q, 10-K, 20-F, 40-F, S-1, 6-K, 8-K and other reports involving financial statements which require XBRL tagging. In most cases the focus has been on the HTML (EDGAR) instance over the XBRL instance as it is human-readable. Furthermore, as a firm is permitted to create extensions in addition to the default XBRL tags provided by the SEC, many solution providers ignore the need to create the appropriate extension tags, and map the data to random extensions ignoring the quality hazards in XBRL tagging.
“Though the introduction of Inline XBRL would not entirely eliminate this incorrect approach, it will raise the bar in terms of XBRL tagging quality and would be beneficial to investors who could now use a simple web browser to quickly review the XBRL tags”- said Vineeto Cherian, Manager at DataTracks.
DataTracks deploys unique and robust internal measures to ensure high level accuracy in XBRL/Inline XBRL while simultaneously reducing costs, and passing the benefits to the end customer.
“Public listed companies do not have to wait for the mandate and can be well prepared with the nitty-gritty’s of Inline XBRL by voluntarily filing in the Inline XBRL format. Our team of 500+ financial experts specialized in US GAAP & IFRS accounting standards are ably prepared for facilitating a quick transformation”, said Suresh Illath, Chief Operating Officer at DataTracks.
DataTracks strives to provide cutting edge Regulatory Reporting Technology across the globe. We are the preferred vendor for three leading Financial Printers in the US and have helped clients prepare over 8,000 XBRL Exhibits and 500,000 HTML (EDGAR) pages for submission to the SEC in the US.
DataTracks conforms to multiple European Regulations such as AIFMD, CRD IV & Solvency II Pillar 3, and has strong footprints in Europe and Asia serving over 4,000 + clients with compliance reports to the HMRC in the UK, Revenue in Ireland, ACRA in Singapore, and MCA in India.
For queries on Inline XBRL and SEC reporting Contact +1 (800).937.9280
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