What is XBRL? XBRL (eXtensible Business Reporting Language) and IDEA (Interactive Data Electronic Applications) are the latest initiatives undertaken by the SEC to make the data contained in publicly-released financial reports easier and quicker to obtain and analyze by investors. This reporting format loads a company’s financial information into a consistent database format that allows investors to simply download a company’s financial information, instead of manually reading through an HTML or ASCII document, and then hand-keying the information into analysis tools such as spreadsheets.
When do we have to file using XBRL technology? Companies with market capitalization of $5 billion or more (as of the end of the second quarter of 2008 - roughly the top 500 U.S. companies) are required to submit XBRL documents in addition to their HTML/ASCII files for any filings with a report date after June 15, 2009. Companies classified as "Large Accelerated" filers are required to add XBRL documents to their submissions for reporting periods after June 15, 2010; all other companies will submit their XBRL documents for periods of report after June 15, 2011. Regardless of company size, the SEC encourages every company to begin early to establish the processes and procedures required to submit XML files concurrently with their HTML or ASCII files.
Also noteworthy is the requirement of "tagging" the notes to the financial statements: In the first year a company is required to submit XML documents, the notes may be "block tagged." In the subsequent year, each item within a note will need to be itemized and "tagged" individually.
How do we file XBRL documents? Southridge Services has experienced accountants on staff, and is ready to assist our clients map and tag their financial statements to the US GAAP taxonomies. Clients can select a self-service option in which they map and tag their financial statements completely in-house, outsource the entire process to Southridge, or something in between. The software used is web-based, allowing clients real-time access to their own XBRL documents so they can take as much control of the process as desired. Also note that once the first mapping of a set of financial statements is performed, the process becomes more repetitive and efficient. Therefore, the first filings are more time-intensive, but thereafter the process is more streamlined, with only additions or changes to the financial statements requiring scrutiny.
It is important that your XBRL filing agent have accounting experience. Simply going with your existing EDGARizer is no guarantee they have the required financial reporting and accounting expertise to accurately map and tag your XBRL filings correctly and efficiently. Southridge Services has the accounting knowledge and experience to get you through the XBRL mandate smoothly and economically. Just give us a call - we'll take care of you.
For a full description of the SEC’s XBRL and IDEA initiatives, please visit http://www.sec.gov/spotlight/xbrl.shtml .
Also, please visit our blog page for updates regarding XBRL.
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