SEC Issues Important XBRL Alert Regarding use of Custom Tags

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The SEC’s Division of Economic and Risk Analysis completed their assessment of the quality of XBRL exhibits submitted by issuers complying with the XBRL Rule requirement.

The goal of the assessment was to help define a baseline of filer behavior in regards to filer’s tagging of financial statements in their electronic filings. This observation report details the use of custom tags to describe elements in financial statements.

The assessment noted that there was a steady decline in custom tag use by large accelerated filers during the initial phase-in period and afterwards. This observation was consistent with improvements to the taxonomy during this period. However, on the opposite side of the spectrum, SEC staff did not see this same trend among smaller filers. The report makes the assertion that continued high custom tag rate use among small filers is due to continued development and growth in the market for filer software and services, each varying in levels of functionality and ease of use.

One of the more compelling points in this observation report was the observation of smaller filers using obvious selection error and unjustified use of custom tags instead of selecting an available standard tag. This has a negative effect on the quality of XBRL filings as well as the value of XBRL tagging in the context of financial reporting and meeting compliance requirements.

For full access to the observation report, please click here.

By : Securex /July 21, 2014 /Compliance, CORRESP, EDGAR XBRL, SEC News and Public Statement, Securites Law, XBRL Blogs /0 Comment