XBRL

Critics of XBRL hoping for a delay

Jim Kim — Tue, 12 Aug 2008 09:45:32 -0400

Has the fact that small companies won a series of reprieves from compliance with 404(b) of Sarbanes-Oxley emboldened big companies facing an aggressive XBRL adoption mandate? Maybe. Big companies seem to be hoping that the SEC will heed their warnings and delay XBRL adoption for companies both big and small. Recall that the SEC laid out a schedule that would call for big companies to report results for a fiscal period ending in late 2008 in XBRL; small companies would follow a year later. CFO reports that big companies have filed comments suggesting that the timetable is too aggressive. While this is understandable, companies may be better off if they ramp up their XBRL efforts now. The last thing you want to do is risk noncompliance. Pfizer and Comcast, reports CFO, warn of tricky vendor issues. Bottom line: Counting on a delay is a poor solution.

For more:
- here's the article

SEC promotes web as financial info release medium

Jim Kim — Fri, 08 Aug 2008 14:43:33 -0400

The SEC has taken a keen interest in promoting new technologies as a way to distribute corporate financial information. The looming mandate for XBRL is an example. Similarly, the SEC just released guidance that encourages companies to use the web--their own sites or recognized third-party sites--as the sole means of releasing market-sensitive information. Financial Week notes that the news went over like a rock. There won't likely be any dramatic change. While the news makes some sense from a Reg FD standpoint, few companies will likely cease releasing news via press release distributors in favor their websites. There could be a period of confusion as investors face uncertainty in whether to look for 8-k disclosures for news or press release distributors, or website items. Companies will have to somehow make clear to investors and analysts how they intend to communicate.

For more:
- here's the Financial Week article

Related Article:
Time for an executive web posting policy?

These are busy times, don't forget XBRL

Jim Kim — Thu, 03 Jul 2008 09:31:32 -0400

For the moment, International Financial Reporting Standards (IFRS) is at the top of everyone's worry list. But a Compliance Week survey reminds us that the SEC has published a proposal to mandate XBRL for all companies by 2011. Fortune 500 companies would be required to adopt as early as next spring. This major reporting technology and IFRS would be quite a one-two blow: new numbers and a new way of reporting them. You would be wise to get your head out of the sand on XBRL. Unfortunately, the Compliance Week survey found 80 percent of company respondents said "nobody on their staff is well-versed" in XBRL. And 59 percent said "they either have just begun reading up on the technology, or have done no research at all." This could easily bite you. Time for a reality check. Here are the survey results.

SEC moves ahead with XBRL

Tue, 27 May 2008 06:59:59 -0400

As expected, the Securities and Exchange Commission has announced that it will propose a rule that would require large firms (a public float of more than $5 billion) to use XBRL (extensible business reporting language) for fiscal periods. A year later, all public companies would be required to follow suit. This follows the SEC's vaunted three-year pilot program. The upside is that companies will have to make interactive financial reports, which have been talked about for so long, a reality. The devil will be in the details of the rule, of course. There is a tendency to expect too much of technology. Financial Week reports that some think that data tagging might have prevented the credit crunch. That's going a bit overboard. Every company will decide how much beyond the baseline they will tag. Chances are, the mindset will not change: They disclose the bare minimum as a protective measure.

For more:
- here's the article

ALSO NOTED: In biotech, lots of pessimism about compliance; Sarbox can be an earnings driver;

Tue, 29 Jan 2008 06:59:58 -0500

> Rogue employee hit bank; are you protected from such employees? Article

> XBRL and higher audit fees. Article

> Michael Oxley joins APCO. Article

> Sarbox can be an earnings driver. Article

> Foreign companies still trade in U.S.-via Pink Sheets. Article

> In biotech, lots of pessimism about compliance. Survey

> These days, nonprofit directors are expected to give. Article

And finally ... The richest people you've never heard of. Article

Smart money betting on XBRL mandate soon

Tue, 18 Dec 2007 06:59:59 -0500

The likes of Microsoft, General Electric and Ford are already filing information in XBRL. One might bet that a formal requirement is an inevitability. Or a bet that such reporting is a just a good idea. Or both. So far, about 61 companies file reports with the format. Many top banks have gotten their feet wet by filing information using the language with the FDIC. Interestingly, some executives are said to fear a formal requirement because they think it will lead to Sarbanes Oxley like upheaval. Really, the best course of action is to start tinkering now. It is reality in the making. Your shareholders will likely thank you.

For more:
- here's the article from eWeek

XBRL making slow gains

Tue, 27 Nov 2007 06:59:59 -0500

I know I sound like a broken record on this, but Extensible Business Reporting Language (XBRL) is a reality. According to cfo.com, the new electronic filing language is scheduled to debut Dec. 5th, when a draft version will be released for public review. That will allow for actual testing to begin. The problem is that awareness seems to be really low. A Grant Thornton survey found that only 53 percent of CFOs knew about XBRL in November, compared with 60 percent in April. This is a good time for someone in your organization to step up and own the situation. XBRL will likely make filing a lot easier over time, though there will be some implementation hiccups. Might as well see it as an opportunity.

For more:
- here's the article

Related articles:
- XRBL to become mandatory soon?
- Do you need help with your SEC filings?
- Avoiding transition problems to XBRL

Read more on: XBRL

ALSO NOTED: BPM one of Gartner's top 10 strategic technologies; Advice: Sarbox costs here to stay;

Tue, 23 Oct 2007 06:59:58 -0400

> PCAOB lists 11 things small audit firms need to look out for. Article
> Advice: Sarbox costs here to stay. Article
> Huron Consulting faring well? Article
> Wolters Kluwer to acquire TeamMate from PwC. Article
> Grant Thorton revenue up 17 percent. Article
> Corporate crime still rampant? Article
> Strong correlation: Governance and reputation. Article
> Wal-Mart whistle blower lands--at Wal-Mart. Article
> SEC approves options auction mart; aid to valuations. Article

IT Watch:
> XBRL inches closer to reality. Article
> BPM one of Gartner's top 10 strategic technologies. Article

And finally ... The origins of "bean counting." Article

XRBL to become mandatory soon?

Tue, 02 Oct 2007 06:59:59 -0400

Have you been experimenting with Extensible Business Reporting Language? Have you even heard of XRBL? Most of you likely have. And somewhere in your organization, someone has likely built up some expertise. A good thing because the SEC seems to be moving ahead with its plans to someday mandate its use. It's a good thing, but it does represent yet another reporting change. The latest news is that the SEC has finally developed data tags--this is an XML implementation at root-- for the entire GAAP, according to cfo.com. The new taxonomy, which is not simple, will be available to the public in December. Basically, the system should allow any company to file everything they do now in simple interactive fashion. We'll see. There will be a lot of hiccups along the way.

For more:
- here's the cfo.com article

Do you need help with your SEC filings?

Tue, 21 Aug 2007 06:59:58 -0400

Sarbanes-Oxley seems to have played a role in forcing companies to get more focused on their filings. The window in which they must file has been shortened over the years, and there is precious little room for error. One company, EDGARFilings of Houston, seems to have found a niche with its software to convert filings into Edgar format. AT&T just joined the list of clients, along with Lowe's, Carmax and Dominion Resources. Third-party filing agents say they have also experienced an uptick in business. The real issue here is XBRL. You have to think that many service providers may start transitioning to XBRL products. Something to think about as you ponder your options. Article