When Does XBRL Need to Be Adopted for the SEC?
The Securities and Exchange Commission (SEC) mandated that all publicly-registered companies file financial reports using eXtensible business reporting language (XBRL) beginning June 15, 2009. XBRL is a markup language that utilizes standardized business information tags that make it easier for users of financial data to perform analysis on the data.
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Time Frames
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Large, accelerated filers -- both domestic and foreign -- with worldwide, public, common, equity floats above $5 billion that use U.S. generally accepted accounting principles (GAAP) must file as of June 15, 2009. All other large, accelerated filers -- between $5 billion and $700 million -- using U.S. GAAP must file on June 15, 2010. All remaining U.S. GAAP filers must file on June 15, 2011. All foreign filers that prepare financials in accordance with international financial reporting standards (IFRS) must file starting June 15, 2010.
Process
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Companies must file their 40-F, 20-F, 10-K, 10-Q, 8-K and 6-K forms using XBRL standard data tags that include references to U.S. GAAP or IFRS regulations. The interactive data labels follow a prescribed definition standardized to allow for easy formatting and analysis.
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Costs
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The initial conversion of financial statements is estimated to cost $ 40,510 for each company. Subsequent filings are expected to be $13,450 per filing. The SEC believes the total hours to comply will be reduced 85 percent from 125.47 hours to 17.25 hours for subsequent filings. Competition from firms offering file conversion will reduce cost further.
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