Here is our pick of the 3 most important XBRL news stories this week.
After a decade of data challenges, Regulators are now taking cautious steps towards new reporting technology. New reports issued this month show that DRR finally has traction and that demand for better solutions is high as the industry pinpoints which areas to deploy it. We may finally be at a tipping point for both transactional and prudential data reporting. However, all eyes are on the supervisors.
Reporting has a range of different recipients, such as shareholders, employees, the general public. Regulators and supervisory authorities are not the least important among them, not least since they act from a position of authority, thus may enforce their reporting requirements. It seems that the Corona time machine is now bringing them on board for DRR – not the worst of consequences.
The UK Financial Reporting Council (FRC) has published a discussion paper proposing a future for corporate reporting based on a principles-based framework. The discussion paper outlines a blueprint for a more agile approach to corporate reporting which challenges existing thinking about how companies can more effectively meet the information needs of investors and other stakeholders.
The future, according to the FRC, consists of an unbundled, digital-first network of interconnected functional parts. The age of the 500 page PDF document that nobody reads cover to cover is finally drawing to a close.
The Taxonomy Architecture Guidance Task Force (TAGTF) working under XBRL International’s Best Practice Board has recently updated this guidance to cover additional topics, include the use of secure (https) URLs, and recommendations for how to reference third party taxonomies.
The usefulness and usability of XBRL as an open source, general purpose business reporting language is critically dependent on the governance surrounding it. The non-profit NGO XBRL International is doing a sterling & under-appreciated job of maintaining and developing the standard. It just needs to be said from time to time.
Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
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