How Do You Think XBRL Reporting Could Improve?

Posted on July 2nd, 2015 by Steve Yakubov The initial purpose of XBRL so many years ago was to improve data transparency for investors and analysts, which in turn would increase investor activity for small and large companies. Yet, somehow things went awry along the way, but as with most things it should get better with time and experience. Now, some 18 years later, industry has decided to take matters into its own hands.

 A consortium of organizations filed a letter in late May suggesting improvements to the EDGAR/XBRL reporting procedures. Part of this initiative is to develop automated validation rules to detect input errors and verify compliance. Industry believes that persistent errors in XBRL filings have stalled usage of the XBRL database. And because these concerns have not received enough consideration from the SEC, the consortium hopes to find solutions from a conglomerate of XBRL industry players, then present it to the SEC.

 Industry has also asked for simpler search options that best display data reported in XBRL. Ken Tysiac, editorial director of the Journal of Accountancy, paraphrases some of those recommendations in an article about the consortium’s letter to the SEC. Many of the suggestions mirror search features found in Internet browsers like Google or Bing. By making the overall system a lot more user friendly, usage of the XBRL database will definitely improve as a result.

For now and until the newly formed conglomerate decides what works best, we suggest working closely with a filer that hires only experienced certified XBRL operators and reviewers to file your documents accurately and within compliance. We also suggest using best practices for your next filing.

But, because we always like to hear from you, our readers, feel free to send us comments or suggestions on how you think XBRL should be improved. Email us at filings@edgaragents.com or post a comment below. 

To learn more about Edgar Agents’ products and services, call us at 732-780-5036 or visit our site at www.edgaragents.com.