Financial reporting is a practice that’s constantly evolving. Each year, companies have new regulatory standards to comply with, more data to report, and different market conditions to contend with. This post explores three components required to produce exceptional disclosures that are compliant and improve investor confidence.
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.
Yesterday, the SEC announced the start of the Inline XBRL, or iXBRL, voluntary filing program which runs through March 2020. External reporting professionals have heard rumblings of Inline XBRL for a few years now, and this announcement marks the SEC’s official launch into a new era of interactive data-based public disclosures. But with updated regulation comes anxiety and fear – and you want to know what does Inline XBRL mean for me?
Data comparisons enable your financial reporting team to analyze and benchmark your company’s performance against peers and competitors. Being able to easily access competitive data will add instant value to any strategic decision-making processes. It is crucial for your board of directors to have a clear picture of how you stack up to your competitors. Consider your current workflow for gathering accurate financial data from the SEC. Are you confident in that process?
Unless they’re particularly reclusive or brand-new to the organization, it shouldn’t be difficult for most employees in a company to know who the CFO is. What can be challenging though, is identifying the next-generation CFOs. Recently consulting firm The Hackett Group released a report, The CFO Agenda, which profiled a number of financial leaders to identify their biggest priorities. This included some things you might expect, like planning a financial roadmap, reengineering processes and installing BI or ERP tools….and something you might not expect.
Company executives, boards, and investors are relying more and more on their financial reporting teams to provide the information and analysis necessary to make crucial corporate decisions and drive strategy. To get this data more quickly and accurately, financial reporting professionals need to ask these 6 questions about their processes.
Private company executives face high demand from their boards of directors to report data that will drive critical business decisions. This call for greater transparency and deep analysis puts a significant burden on typically lean teams. Below we outline a few pitfalls of investor and management reporting and provide an alternative to streamline the process.
XBRL can be complicated, time consuming and time sensitive. A comprehensive disclosure management vendor will offer a range of service options from XBRL review and one-time tagging services to full XBRL outsourcing. Different models work for different teams, and as requirements change and team structures transform, so do your needs. Here are a few questions to ask yourself when evaluating the right service model for your company.
In order to stay compliant and maintain efficiency, public companies need to continually evaluate and improve their external reporting processes. Many times there are workflow changes that can make all the difference like scheduling a post-mortem of your recent filing or automating the flow of data to mitigate risk and improve quality. Other times, companies might see a need to re-assess their vendor relationships, software functionality, and level of service. Shopping for a new vendor can be tricky, but there are three things we suggest you do to make sure you head in the right direction.
The SEC Division of Economic and Risk Analysis recently examined the use of custom axis tags in XBRL exhibits that reporting companies submitted with their 10-K disclosures. An axis tag in XBRL allows a filer to divide reported elements into different dimensions while also showing the relationships between separately reported elements. The SEC’s assessment found that while more than 300 standard axis tags exist in the U.S. GAAP taxonomy, the average annual XBRL exhibit only uses about 20.