Here is our pick of the 3 most important XBRL news stories from the last week.
Distributed ledgers (i.e. blockchain or otherwise) and XBRL are a match made in heaven. Blockchain-anchored XBRL takes XBRL-based digital financial reporting to an entirely new level of usefulness. Both transparency and trust are enhanced.
This piece provides a brief summary of the potential benefits of bringing XBRL reports to the blockchain, complete with links to interesting entities experimenting in that field. Watch this space!
Today the Sustainability Accounting Standards Board (SASB) announced that the SASB eXtensible Business Reporting Language (XBRL) taxonomy is now open for a 60-day public comment period. SASB engaged PwC to support in the development of an XBRL taxonomy encompassing SASB’s 77 industry Standards. By integrating into the common language for business reporting, the SASB XBRL taxonomy can further enhance the quality and usefulness of SASB disclosures.
This is one of the first real steps of convergence that brings hitherto niche ESG reporting to the “grownup” world of financial reporting. Still missing are: a single, global, high quality sustainability reporting standard, a COSO like control framework and auditability. I’m confident that there will be big progress made on all fronts before too long.
The Bank of England has unveiled its plans for renewing the way that it collects data. In ‘Transforming Data Collection from the UK Financial Sector: A Plan for 2021 and beyond,’ it sets out a decade-long effort to transform its ability to gather and make available high-quality, timely data, while alleviating strains on data reporters and the current collection process. An early priority will be to create a joint work programme with the UK’s Financial Conduct Authority and the financial industry.
This is what a leading financial regulator needs to do: set standards and lead. Hats off to the old Lady of Threadneedle Street!
Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
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