Here is our pick of the 3 most important XBRL news stories.
“XBRL US announced today that the Financial Accounting Standards Board (FASB) has incorporated freely available validation rules into the 2020 release of the US GAAP Financial Reporting Taxonomy. The rules, developed by the XBRL US Data Quality Committee (DQC) are used by public company filers to identify and resolve errors in their XBRL financials prior to submission to the Securities and Exchange Commission (SEC). The DQC has been building rules since 2015 and has introduced 10 rulesets covering multiple categories of errors, such as signage (negative or positive) problems, errors in the use of dates, calculation mistakes, and the inappropriate use of axes when creating financial tables. In 2018, the DQC began introducing rules based on the IFRS Taxonomy, to support foreign private issuers that rely on that taxonomy.”
Curator’s note: Although low quality submissions will be disciplined by the market, because they are bad for Investor Relations, tech support to catch errors is critical.
“listed financial institutions also need to comply with the new European Single Electronic Format (ESEF), which is mandated by the European Securities and Markets Authority (ESMA).”
Curator’s note: Regulators will continue to add complexity. Politicians seldom think of what it costs to comply. Although this post focusses on the devil in the details, the big picture is that compliance with new reporting rules will be a lot easier if your systems are based on XBRL. Regulators should be forced to go on a training course on XBRL.
“The Centralized Repository will enable electronic storage of life insurance and family takaful policies and serve as central point for critical policyholder related information.”
Curator’s note: Insurance regulators like centralised repositories encoded in XBRL as it makes it easier to spot issues of concern. It is interesting that this innovation is coming from an Islamic country For more on why Takaful (Islamic Insurance) matters, please read this post
For the first curated news on XBRL, we set the news recency to one month. From next week we will go to one week.
We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.
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