SEC Releases New Documents on XBRL-Based Filings
Related to filings using eXtensible Business Reporting Language (XBRL), the U.S. Securities and Exchange Commission (“SEC”) has issued Staff Observations of Custom Tag Rates (“the Report”) and Sample Letter Sent to Public Companies Regarding XBRL Requirement to Include Calculation Relationships (“the Letter”).
Per the SEC, the Report will help review the quality of XBRL exhibits issuers present to meet the agency’s requirements in filing financial statement information via XBRL format. The review will assist the SEC in defining a starting point for filers tagging financial statements when filing electronically, including how their actions have changes since completing the phase-in of issuer and rule requirements. While current XBRL U.S. GAAP taxonomy gives filers numerous standardized financial elements (i.e. “tags”) to choose from, the SEC allows filers to create their own tags when the standard taxonomy’s necessary financial element does not have one. Conversely, to help limit custom tags and encourage comparability between filers’ XBRL information, the SEC has listed the minimum conditions for a filer to create custom tags.
Sent by the SEC’s Division of Corporation Finance to public companies that submitted reports on Form 10-Q, the Letter reflects the XBRL requirement that contains calculation relationships. Required by the SEC, an exhibit must be included with certain filings that have financial information in XBRL, as well as calculation relationships for particular contributing line item elements and associated footnotes. The Letter serves as a reminder for issuers when planning their exhibit with XBRL data, and that each requirement is met to ensure all required calculation relationships are included.