Digital Financial Reporting

In a 4 to 1 vote, the U.S. Securities and Exchange Commission will begin requiring public companies which are regulated by the SEC to submit information using XBRL.  The mandate is similar to the proposed rule the SEC floated for comment several months ago.

There will likely be more information on the SEC's news digest. (Nothing there at the time this entry was written.)

You can get play by play of the ruling at Rob Blake's blog.

Commissioner Casey said something to the affect, "The advantages of XBRL are self evident."

Commissioner Walter said that the affect of XBRL will be "Broad, sweeping"

Commissioner Paredes said "Investors can use [XBRL] information as they see fit."

Chairman Cox was given a lot of credit for having the vision to make interactive data a reality.

The descending vote related to liability of those submitting information.  The descending commissioner was supportive of XBRL but felt that companies should get less breaks relating to the liability for any issues with information submitted in XBRL.

In an interesting statement made during the meeting, it was pointed out that the old filing formats will eventually be phased out.  No time table was stated for such phase out.

Welcome to a brave new world of financial reporting!