XBRL FREQUENTLY ASKED QUESTIONS


SEC DISCLOSURE RELATED QUESTIONS –
Which financial disclosures are required to be tagged?
Is XBRL done instead of EDGAR Filing?

TAGGING PROCESS –
How long does a “typical” detailed-XBRL filing take to create and complete?
When does my company have to start filing in XBRL?
Does XBRL have to be done by the same company/people that do my company’s EDGAR Filing?

 

SEC DISCLOSURE XBRL FAQs

Which financial disclosures are required to be tagged?  (Back To Top)

The following core financial statements must be tagged:

  • Balance sheet
  • Income statement
  • Statement of Comprehensive Income
  • Statement of Cash Flows
  • Statement of Stockholder’s Equity

The requirements for financial statement footnotes and schedules are as follows:

  • Detailed tagging generally means that all numbers (values) including: facts, figures, percentages, years, etc. will need to have US GAAP concepts applied to them. These include numbers in both the narrative of the disclosure as well as in the tables presented.
  • Additionally, US GAAP Concepts will need to be applied to identify tables, entire notes and significant accounting policies (which means narrative information).
  • Finally, Financial Schedules included in your disclosures will need to be tagged in the same fashion as described above.


Is XBRL tagging performed instead of EDGAR Filing?  (Back To Top)

No. EDGAR (HTML) filing is still required and needs to be done as it has been in the past. XBRL documents are filed as exhibits to EDGAR Filings through the SEC’s EDGAR/IDEA Filing system.

SEC DISCLOSURE XBRL FAQs

How long does a “typical” detailed-XBRL filing take to create and complete?  (Back To Top)

Short-answer: It depends on how complex your financials and notes to financials are.

There is no magic bullet for XBRL. The human factor of reviewing and interacting with filings will always exist until people can teach computers to think and reason. There is no software program available that can “do it for you”.

XBRL is changing the way companies file and it requires more time than the current systems that are in place. Creating and Tagging documents in-house requires a considerable investment of capital, employee time, training and maintenance. We have found that this is time and bandwidth most companies are already short on, and when you add the additional accounting expertise necessary to understand changes in the Taxonomy year over year, most companies can not justify doing this process in-house for only four or five filings per year.

Companies usually exhibit long learning curves to become familiar with the XBRL process. The estimated in-house time per filing is in the hundreds of work hours, but RDG takes all of the grunt work out of the process and cuts out well over 90% of the time your staff would need to spend creating and tagging documents with in-house software.


When does my company have to file XBRL?  (Back To Top)
The SEC mandated timeline is as follows:

  • All filers that file financial statements prepared in accordance with U.S. GAAP, including smaller reporting companies, and all foreign private issuers that prepare their financial statements in accordance with IFRS as issued by the IASB, must file beginning with the first fiscal period ending on or after June 15, 2011.
  • Mutual Funds are required to file Risk/Return Summary documents in XBRL effective January 1, 2011.
  • New IPO companies must file XBRL exhibits with their EDGAR/IDEA filing beginning with their first 10-Q after their initial public offering. Registration statements regarding IPO Filings are not required to be tagged.


Does XBRL have to be done by the same company/people that do my company’s EDGAR Filing?  (Back To Top)

No. XBRL tagging and document creation can be done on its own with no problems. Once the mark-up is complete, the files can be sent in seconds to the appropriate party handling the actual filing.