XBRL: real-time reporting, extensible lists and rulesets

Here is our pick of the 3 most important XBRL news stories this week.

1 Opportunities and challenges of real-time financial reporting

This article reviews the implementation of real-time reporting by state and municipal governmental units as a model for analyzing these emerging technologies.

We have been advocating real-time financial reporting for a long time already, not least – and counter-intuitively – as a remedy for financial markets’ short-term obsession with quarterly results. Current reporting is already dated when published. Real-time reporting would enable analysts to look at real business cycles rather than artificial (quarterly) reporting cycles. You may have guessed we’re not talking states & munis here …

2 FASB offers guide to XBRL extensible lists

The Financial Accounting Standards Board has released a new guide to a feature of Extensible Business Reporting Language known as extensible lists

Extensions (the bit of that’s responsible for the X in XBRL) are tricky: They provide the issuer with flexibility over and above the standard terminology provided by the taxonomy, BUT … they provide the issuer with flexibility. These lists are useful to tie extended disclosures back to reported items.

3 XBRL US DQC public exposure of 13th ruleset for US GAAP filers

The XBRL US Data Quality Committee (DQC) has published its 13th Ruleset for a 45-day public review and comment period, which closes on September 17, 2020. The DQC has also approved and published its 12th Ruleset. DQC rules aid US GAAP and IFRS issuers in preparing consistent, error-free financials, by providing automated checks that test an XBRL-formatted financial statement prior to SEC submission

The beauty of XBRL is that issuers can capture most mistakes and inconsistencies in their reports thanks to the semantic logic that is part of the reporting format. DQC provides sterling public service to keep those features up to date with latest developments.

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Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.

 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.

 For context on XBRL please read this introduction to our XBRL Week in 2016 and read articles tagged XBRL in our archives. 

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