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SEC XBRL - The Transition of the EDGAR System
XBRL data is considered interactive, which means it can be presented to investors and analysts quickly in a format they can most easily use. Interactive data pinpoints all of the facts and figures trapped in dense documents, allowing the analyst to immediately identify exactly the information they want, extract and compare it to the results of other companies, performance in past years, industry averages - in whatever manner the analyst wishes to present comparatives. How XBRL Works
Instead of reading a document and manually identifying relevant data, interactive XBRL data allows the creation of documents from which software can extract desired data. Think of every fact in an annual report, every number in a company's financial statements, as having a unique barcode that tells standard software what the item represents and how it relates to other items in the report. Interactive data "tags" all of the key facts in these large documents, so that software can instantaneously recognize them and present them to the investor. Current SEC XBRL SituationOn September 25, 2006 the SEC announced it had awarded three separate contracts totaling $54 million to transform the EDGAR disclosure system from a form-based electronic filing cabinet to a dynamic real-time search tool with interactive capabilities. The major investment in an "interactive data" system signals the agency's commitment to move away from the model of its current EDGAR database. It also presages widespread adoption of interactive data filing by companies that report their financial information to the SEC - a development that until now has only been a voluntary pilot program. The way EDGAR documents are prepared, converted, and filed with the SEC will be changing as a result of the commission's move to an interactive XBRL system. The contracts announced will enable not only the upgrade of the EDGAR system, but also the finalization of the XBRL format which at this point cannot accurately accommodate all industry classifications. Automated Filing Services Inc. will monitor the SEC XBRL development process and keep its client base informed of any important milestones. SEC XBRL FAQSCan I submit my documents in XBRL format now?Yes, it is possible to submit selected financial data in XBRL format to the SEC on a voluntary basis. There is a small group of companies currently participating in the voluntary XBRL program. View a list of recent XBRL filings. Can Automated Filing Services Inc. convert documents to XBRL format on my behalf?Yes, but unlike the current process of converting Word, Excel, or PDF files to HTML or ASCII format, creating SEC XBRL documents involves marking certain factual data with special predefined "tags". This coding process is involved and requires close consultation with the client and its auditors. Automated Filing Services Inc. is available to assist its clients with establishing a process through which SEC XBRL data can be generated. We have a qualified accountant available for consultation. What exactly is the state of SEC XBRL now?As of January 2007 the SEC is working with consultants and contractors to revamp the SEC EDGAR system and finalize XBRL taxonomies. Taxonomies are "vocabularies" or "dictionaries" created for an industry classification in order to exchange information. At this point only a few high level taxonomies exist; the SEC is working to develop taxonomies that work cleanly with all company industry classifications. When should I begin filing my documents in SEC XBRL?It would be in your company's best interest to become familiar with SEC XBRL and gain an understanding as to how it will change your reporting processes. Due to the continued development of the standard some issues are still "in flux" which will make it challenging if not impossible to finalize this process now. Where can I find more information about SEC XBRL?The SEC has a "spotlight" web site on the XBRL program that contains links to items of interest. Articles of Interest
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