What happens if President Vetos Bill (H.R. 37)?

As the blizzard in the Northeastern U.S. winds down, a blizzard in Washington D.C. gains momentum. Too many opposing parties are in conflict over H.R. 37, now H. Res. 27, and each party holds a valid point. Nevertheless, the bill, which is now being considered in a Senate Committee, could eventually be vetoed by U.S. President Barack Obama and all will remain as it was.

“The bill would undermine the Dodd-Frank Wall Street Reform Act ‘while benefiting Wall Street and other narrow special interests,’” the President stated in an article in USA Today.

But in the meantime, opposing parties continue to debate their respective sides. Investors and financial analysts say that the SEC allows too many exceptions for public companies filing their financials and oppose a bill that will exempt companies with less than $250 million in revenues from filing their financials in XBRL. They argue that with more exceptions, the less data there is to compare, making for an inaccurate analysis of companies and certain markets. Let’s face it, complicated and sketchy data will scare investors from investing in a company. It makes one wonder if the extra costs to file in XBRL are not only worth the extra effort but essential to a company’s longevity?  Companies will sometimes need investor funding to keep their operations going and that is less likely to happen without transparent data.

In another argument, the SEC advocates that the data in XBRL has helped the agency search for patterns of possible fraud or misreporting.  This should be a good thing, no? Not so much for smaller companies because they claim that although XBRL may benefit investors, analysts and the SEC, the cost of XBRL is too high for a company trying to get its business up and running in the first five crucial years. However, this argument also does not hold much weight as reported in an earlier post because the average annual cost of XBRL is only $10, 000, and far less than that with some filing agents such as Edgar Agents.

As the argument goes back and forth between the different groups, the White House threat confirms XBRL is here to stay, at least for now. So, how do we move forward? Best bet is for everyone to start shopping for a filer that will work with your requirements and within your budget.

Shopping for a better filer might be the answer to cutting costs whether you are continuing with your XBRL operations or are an IPO just getting started.  Be sure you are prepared with the proper tools and tips in order to find a filer that will customize your specific needs at a reasonable rate. Also, be sure to read our latest blog posts for questions to ask and tips to consider before shopping for a filer. Do not hesitate to call an Edgar Agent or visit www.edgaragents.com if you have specific questions or want to learn more about our services.