The Accounting Policy & Practice Report ® provides financial accounting policy makers, advisors, and practitioners with the latest news, expert insights, and guidance on emerging, evolving,...
By Denise Lugo
Aug. 10 — U.S. federal agencies are getting ready to greatly expand their use of eXtensible Business Reporting Language (XBRL) after observing how XBRL has made inroads within the U.S. banking sector as a standardized way to submit data, according to a panel discussion in New York held by the American Accounting Association.
The U.S. Treasury Department, for example, is gearing up to get federal agencies like the Internal Revenue Service and others to use XBRL to submit data reports.
The growing usage of XBRL has been heavily influenced by the 2014 Data Accountability and Transparency Act, which mandates that data be reported in a standardized format, according to the panel discussion. The goal of a standardized format is to ensure the reporting of reliable, consistent federal spending data for public use.
“Use of a standardized format to report data will provide more accountability on how tax dollars are being spent,” XBRL US's President and CEO Campbell Pryde told Bloomberg BNA Aug. 10.
The banking sector, about a decade ago, started implementing XBRL as the Federal Deposit Insurance Corporation (FDIC) mandated banks file their Call Reports using XBRL data. Call Reports are quarterly reports all FDIC insured banks are required to file with their primary regulator. The reports have to be filed between 30 to 45 days after the end of each quarter.
“The FDIC saved millions of dollars having all the banks report to them in this very standardized format,” panel moderator Glen Gray, professor at California State University, said during the discussion. “That sometimes gets lost in these discussions,” he said.
XBRL has also made huge strides in financial reporting for public companies. Similar to the FDIC, the Securities and Exchange Commission also mandates public companies to use XBRL for filing their 10-Ks and 10-Qs. Mutual funds also have to report in XBRL.
In June, the SEC said it would allow companies to file structured financial statement data in a format known as inline XBRL (12 APPR 12, 6/17/16). Inline XBRL allows a company to incorporate XBRL tags into its HTML-formated financial statements rather than filing a separate exhibit.
Global use of XBRL also is substantial, practitioners say.
Overall, over 60 regulators globally have either adopted or are in the processing of using XBRL. these include: the Netherlands, the European Union, the U.K., Australia, Japan, Korea, India, Russia, Brazil and Mexico.
To contact the reporter on this story: Denise Lugo in New York, firstname.lastname@example.org
To contact the editor responsible for this story: Ali Sartipzadeh at email@example.com
Copyright © 2016 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)