By Raymond Ong. 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 2016 Taxonomy contains updates for accounting standards and other recommended improvements to the official Taxonomy, which is used by public issuers registered with the SEC. As the deadline for submitting comments is approaching, we wanted to encourage you to gather your comments and explore why it is important to take advantage of the opportunity and discuss how this may affect your financial reporting experience.
- This is your time to be heard. With the rules and regulations becoming more stringent every year, you might feel like you have no control of the financial reporting process. Well, you actually do – being proactive and providing your feedback on a pending update is your chance to be heard and make your personal contribution to the future regulation!
- Your feedback is valuable. Since assuming development and maintenance responsibilities for the US GAAP Financial Reporting Taxonomy, FASB has put in great efforts to reduce complexity and increase the simplification of financial reporting. But they need users’ perspectives to identify common reporting practices and issues in order to make improvements and develop updates. As the taxonomy is directly related to the complexities of your job, your feedback is the most valuable for making the changes and improving the process.
- This is your chance to make a change. Is there a certain rule that doesn’t make sense for your industry or a specific tag that logically doesn’t make sense for your niche? This is your chance to make a change – describe the issues you are facing and propose a feature or an element that would be more suitable for your business and reporting.
- It’s easy. Submitting a comment is as easy as going into Yeti. You can view the presentation and concept relationships of the proposed 2016 taxonomy as you normally would with the current taxonomy in Yeti. To add a comment, simply click the plus symbol on any of the element attributes, such as standard label, name, documentation, and data type. Don’t be surprised if a member of the FASB staff responds to your comment as soon as the next day.
- XBRL is here to stay. XBRL is mandated by the SEC, and if you are a public company you must file your financials in XBRL format. So you might as well do your part to make it the best it can be. In addition to compliance with the SEC submission requirements, XBRL provides many other benefits, such as more efficient and timely access to information, improved market oversight and investor protection. Your comments and feedback will not only benefit your reporting process, but will also contribute to better transparency of financial reporting.
The proposed 2016 GAAP Taxonomy and instructions on how to submit comments are available at the FASB’s XBRL page. Comment before October 31, 2015, and share your experience with us! If you need help submitting your documents to SEC, request a demo of our Disclosure Management platform to learn how we can help to streamline your XBRL tagging and improve your reporting processes.