In part one of our blog series on the Financial Accounting Standards Board’s (FASB) invitation to comment, we addressed common quality issues in XBRL data. In part two, we’ll discuss the current taxonomy update process, identify areas of concern around this process, and discuss several suggestions for potential improvements.
On May 10, 2017, the Financial Accounting Standards Board (FASB) issued an Invitation to Comment in which it discusses the areas for improvement in the US GAAP taxonomy, as well as the taxonomy update process itself. Here are the five main quality issues that FASB addresses…
XBRL quality matters, and the XBRL US Data Quality Committee (DQC) is committed to improving quality of interactive data filings submitted to the SEC by providing guidance and rules that will detect and prevent inconsistencies in XBRL data. On June 30th, 2016, the DQC announced the start of its second public exposure period for proposed rules. The recently proposed rules consist of the following guidance.
If you’re reading this, you’ve likely gotten your 10-K out the door. Congratulations! After you actually stand up from your chair, unchain your ankles from your desk and get re-acquainted with your family, there are a few things you want to do while you have the year-end close process and experience fresh in your mind. Reflection is key, and before you know it the Q will be sneaking up on you.
The EDGAR database has a search function that allows public access to all company filings including various 10-K, 10-Q and 8-K filings for peers and competitors. Great, right? In theory, yes; in practice, not so much. The missing word is easy. If you have tried to search documents in EDGAR before, you know that the process is far from easy. Being able to quickly pinpoint the information you are looking for is difficult to say the least, and even EDGAR confesses there are limitations to the types of searches you can perform. But there is a better way.
Recently Morningstar announced that it will be sun setting its web-based research service, Morningstar Document Research (MDR), effective August 31st, 2016. MDR, which is more commonly referred to as 10-K Wizard, has long been revered by the SEC document research market for being a cost-effective solution that helps users navigate corporate disclosure filings and fulfill SEC filing research requirements. Morningstar’s departure from this space has left its current and prospective clients feverishly scouring the market for an affordable alternative that doesn’t compromise on functionality.
Formed on June 24th, 2015, the XBRL US Data Center for Data Quality is dedicated to improving the utility of XBRL financial data filed with the SEC. In this press release, the Center announced its plans to address two main areas. The first area is to provide uniform, consistent tagging of financial data and to clarify those specific circumstances where custom tags are appropriate. And the second area is to automate validation rules to detect input errors and verify compliance with the Committee’s guidance.
On September 1, 2015, The Financial Accounting Standards Board (FASB) released the proposed 2016 GAAP Financial Reporting Taxonomy for public review and comment. The proposed changes aim at simplifying the taxonomy by removing elements with low and inappropriate use and reducing redundancies and inconsistencies.
Competitor intelligence (CI) is an essential component for developing a business strategy. It provides insights into marketplace dynamics, benchmarks your financial performance, and reveals operational strengths and weaknesses of your competitors. The key to an effective CI process are the internal metrics or the key performance indicators (KPIs) derived from the financial statements – they allow a fair comparison between peer companies and help evaluate their progress over time.
Clawback provisions, referring to money or benefits that can be taken back as a result of special circumstances, are no new concept in the world of executive compensation. However, in a recent press release, the SEC proposed rules that would require companies to adopt and comply with a compensation recovery policy. This SEC proposal marks the final outstanding regulation required by the Dodd-Frank Act of 2010. Here is a bit of detail surrounding the proposed listing standards.