What is XBRL?
Based on XML, a standard means of communicating information on the Internet, XBRL (eXtensible Business Reporting Language) is a specialized form of interactive data designed for businesses. It is a mechanism that allows business reports to be marked/tagged in such a way that the meaning of fact in the report is understandable and standardized. XBRL is specifically designed to provide rapid access to information. Investors and analysts want quicker access to financial information in a format they can easily use. EDGAR filings, containing financial data, have very limited search capabilities. The time for XBRL is here!
XBRL allows investors and analysts to pinpoint the exact information they want. This form of interactive data instantly compares itself to other companies’ data. Financial statistical comparisons are easily visualized based on performance, industry averages, etc.
Who is currently using XBRL?
Approximately 80 companies representing more than $1 trillion of market value have joined the SEC’s test group. These companies are helping the issuers and the SEC to determine the best ways to make interactive data serve America’s investors. In return, the SEC provides expedited review.
1. XBRL ensures greater transparency for the listed companies;
2. XBRL allows investors to accurately compare investment opportunities and risks;
3. XBRL automates financial reports in a format easily used for analysis;
4. XBRL can help attract investments from non-traditional sources.
The timeline for this initiative is as follows:
On or after 6/15/09 – Large accelerated filers with a public float greater than $5 billion
On or after 6/15/10 – Large accelerated filers with a public float greater than $700 million
On or after 6/15/11 – All remaining filers
As part of the 21st Century Disclosure Initiative, the SEC has mandated XBRL filings effective June 15, 2009. At this time, publicly held companies must still file their mandated filings on time (e.g., 10Ks,10Qs). Companies have 30 days from the filing deadline to file their XBRL tagged document, in the form of an 8-K. This grace period is only effective for the initial filings in XBRL,not any other subsequent filings.
How should clients supply financial data?
You should still supply your documents to us in the same manner that you had previously (MS Word, Excel).
With growing reporting requirements and shrinking schedules, our clients rely on us as a single-source supplier of shareholder compliance and marketing communication services. Companies trust DG3 to ensure they maintain accuracy, meet deadlines and manage costs.
DG3 has extensive resources and over 10 years experience in financial print and investor communications. We can help you and your investors benefit from this technology, while ensuring SEC compliance.
DG3 has formed a strategic partnership with Rivet® Software, an innovator in XBRL Communications and Analysis Solutions to extend best in class XBRL filing services for our clients by offering the most comprehensive suite of solutions available. This includes Rivet’s CrossTag™ XBRL Creator, the world’s first web hosted XBRL solution. See our press release for more details.
DG3 XBRL Workflow
DG3 offers companies the knowledge and expertise to create XBRL documents. Whether you are filing an 8-K or a 10-K, we can provide the necessary resources to accomplish your initial and subsequent XBRL EDGAR filings.
The initial filing your company does in XBRL will require the most amount of time. Initially, DG3 will convert your financials to XBRL. Throughout this process, we will map the financials with the appropriate US GAAP taxonomies. Once all data is mapped, DG3 will validate the data and create an XBRL instance document with zero calculation errors. This document is yours to review. At this time you may verify the taxonomies and verify the tagged data. Our staff offers expertise and an extensive knowledge of XBRL. We can assist you with any questions you may have regarding the instance document.
Once the XBRL document has been verified with your staff, DG3 will submit the XBRL/EDGAR submission to the SEC.
Subsequent XBRL filings will not be as time consuming since the template DG3 creates for your company’s initial filing will be utilized. It can be updated as necessary.
Element – A defined fact inside a taxonomy.
Extension – A company defined line item that is based on a current taxonomy. It is a taxonomy that extends to an existing base taxonomy.
Instance Document – Financial statements or business reports which have been tagged in XBRL.
Interactive Data – The use of technology to access information that provides investors and analysts with disseminated information in a format they can easily use and understand.
Label(s) – The full description for each of the elements contained in the taxonomy.
Linkbase – Defines a relationship that specifies the rules used to calculate each financial fact in a report. Linkbases and schemas define a taxonomy.
Schema – The definition of what type of data is being reported (e.g., reporting period, profit/loss, etc.).
Tag – The association of XBRL elements with financial statement items.
Taxonomies – The rules and format that describe the required information in financial statements and business information. Taxonomies for financial statements are based on US GAAP. There are five different types of taxonomies (real estate, broker/dealer, banking & savings, insurance, commercial/industrial).
US GAAP – Generally Accepted Accounting Principles as defined by the Financial Accounting Standards Board (FASB).
XBRL – (eXtensible Business Reporting Language) A form of business reporting language for financial statements and business information.