Press Release XBRL US, the non-profit consortium dedicated to improving business reporting, announced the formation…
Companies Unfazed as XBRL Liability Protection Fades
Published in Compliance Week
Author: Tammy Whitehouse
The 2013 XBRL survey conducted by the Financial Executives Research Foundation showed that 58 percent of 402 companies that participated took no new action to change anything about their XBRL process even as their limited liability expired.
The SEC gave companies two years’ worth of modified liability to allow them to learn how to use XBRL. For the majority of companies, XBRL liability protection has expired, and for the rest, it will expire entirely for all companies by October 2014.
Overall, the results showed that more than 50% of all filers, regardless of filer size, took no new measures. Of those that took proactive measures, the majority said they added process documentation to beef up their XBRL process.
On the other hand, the SEC has pointed out persistent routine errors in XBRL filings and called on companies to correct them, however the SEC has also been criticized for doing too little to clean up XBRL filings. For access to the full article, please click here.
What’s your opinion on the future of XBRL as limited liability protection fades?