The Securities and Exchange Commission (“SEC”) has adopted a final rule that amends its requirements for using the eXtensible Business Reporting Language (“XBRL”) in regulatory filings. According to the final rule, companies that use XBRL must embed the interactive data instructions directly into their regulatory filing’s financial statements while being prepared. For shareholder reports, mutual funds must use inline XBRL when preparing risk/return summaries.
The rule change is likely to speed up the time necessary to prepare a financial statement in XBRL and manage the appearance of footnote disclosures in an interactive data format. In addition, the rule is expected to reduce irregularities between the HTML versions of financial statements on the web and the XBRL filings the SEC receives, and it no longer requires operating companies and funds to publish financial data configured in XBRL on their websites.