VideoSarah Johnson, CFO.com | US
February 11, 2008
- XBRL is Coming
Interesting and insightful post. Although I think the timeline for an XBRL mandate for companies may be sooner than we think.
The SEC?s Committee on the Future of Financial Reporting issued a report in November recommending that "the SEC should consider mandating the use of XBRL for financial statements for fiscal years ending December 31, 2008 for large accelerated filers."
A subsequent Reuters report noted, ?if the testing [of the XBRL taxonomy] goes as planned, U.S. regulators are expected to propose as soon as April that companies be required to file 2008 final results in XBRL.?
Companies really need to start thinking XBRL now -- not a few years from now.
Her's a bit of info on the SEC voluntary filing program -- and you can get more off the SEC website: http://www.ubmatrix.com/news/pr_120407.htm
I'd also recommend some case studies on uses of XBRL for financial info reporting and exchange outside of any SEC mandate as well:
http://www.ubmatrix.com/casestudies/Posted by Daniel Cahill | Feb 20, 2008 1:31 PM ET
- XBRL requires reorganization
Respecting the comments made both in the article and in response to it by others, it has to be noticed that while most larger companies which fall into the category of filing at the SEC do indeed have IT members familiar with XML, use of the XBRL standard (an XML dialect, if you will) requires both technologically and financially saavy filers. In most companies the knowledge to deal with XBRL resides in the IT and not finance. Proper tagging, though requires the finance department. So both departments need to work closely together. It can be done, but reorganization and implementation costs should not be underestimated.
Posted by Steven Calkins | Feb 20, 2008 4:34 AM ET
- Yes, it is OK but . . .
XBRL, while unknow to you, is not a black box or the magnitude of an ERP implementation. However, careful consideration and planning is critical not only to success, but the ongoing maintenance.
Posted by Larry Settles | Feb 12, 2008 2:39 PM ET
- XBRL is OK
Every listed company has an IT department that knows how to do basic XML. Everyone does it - to send requirements, receive shipment notifications, move liquidity... It's really a rather easy job of data mapping. XBRL is no more difficult. Of all the current wave of mandates, this is the most sensible. It will, fairly soon, result in lower costs for both coporations and government.
Posted by George Brown | Feb 12, 2008 1:52 AM ET
