XBRL News about Workiva’s ESG reporting, predictive value and Russian banks

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

1  Workiva simplifies and accelerates ESG reporting for companies across the globe

Workiva Inc. (NYSE:WK) announced it has extended its cloud platform capabilities to help companies meet the rapidly changing landscape of Environmental, Social and Governance (ESG) reporting with a fit-for-purpose ESG solution. The end-to-end solution allows businesses to keep pace with the demand from regulators, ratings agencies, institutional investors and other stakeholders for trusted, transparent data and proof of ESG forward-looking business goals.

Mandatory, standardised, audited ESG reporting prepared within a strict control framework and delivered as XBRL structured data – that’s what mainstreamed sustainability reporting will have to look like going forward. Now that Workiva offers an ESG reporting package, it’s time to show off its capabilities by starting its own ESG reporting. Note that the author has a commercial interest in the firm. 

2 Are XBRL data better at predicting future stock returns?

All US public companies submit their financial statement data to the Securities and Exchange Commission (SEC) in standardized XBRL format. These structured disclosures are based on the U.S. Generally Accepted Accounting Principles (GAAP) Financial Reporting Taxonomy, include values in the financial statements and footnotes, and can be tabulated to meet a range of data consumers’ needs.

Stock screening and portfolio management usually depend on normalised fundamental data, which breaks down individual companies’ differentiated reported data into simplified concepts. In that process, much information gets lost in translation. This piece provides evidence that there is alpha in working with as reported data.

3 Small files, lots of data: Bank of Russia launches xBRL-CSV reporting

Congratulations to our friends at the Bank of Russia! It has become the first regulator to collect data using the xBRL-CSV format, facilitating the submission, storage and analysis of large volumes of granular data. The use of the xBRL-CSV specification will allow filers to create report packages that capture granular information in accordance with the Bank’s XBRL taxonomy, whilst remaining streamlined.

The coverage of XBRL developments in the Russian banking sector continues. It’s great to see that the Bank of Russia is already adopting a new standard that has been released only quite recently.

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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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