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

Another 404(b) extension for small companies

Jim Kim — Sat, 28 Jun 2008 13:31:52 -0400

The SEC has approved another gift for non-accelerated filers: another one-year reprieve on Section 404(b) compliance. Even as investor advocates howl, the news came as a relief to many companies. For those betting on another delay, congratulations! You bet correctly. This will give you more time to get everything straight. Of course, 404(a) compliance processes are well underway (or should be). That requirement is not affected. There are some companies that had moved down the 404(b) path, which has been watered down significantly. That work was not in vain, as those companies now are ahead of the curve. If you really want to push it, you could always comply voluntarily. Investors will appreciate that, but the costs have to be weighed.

For more:
- here's the article
- Politicians praise the extension. Article