PROPHIX CPM Blog

US Securities and Exchange Commission Mandates Use of XBRL

Last year, the US Securities and Exchange Commission (SEC) voted to approve rules that will require all registered companies to use eXtensible Business Reporting Language (XBRL) when submitting their financial statements to the SEC. XBRL is an xml-based report format. In this report format, each piece of data is identified with an xml tag. XBRL has been likened to a barcode for financial statements.

The aim of this report format is to give consumers of financial data including investors, analysts, financial institutions and regulators, the ability to receive, find, compare and analyze data much more rapidly and efficiently in a standardized format.

Companies that need to convert their financial statements into the XBRL format have a few different options. The firm can develop a solution in-house to fulfill the necessary filing requirements or can outsource the tagging process to external members such as filing agents or financial printers. The third option that provides a more logical alternative to people already utilizing financial reporting software is a bolt-on solution that uses the financial statements created by the firm and converts the reports to an XBRL format.

PROPHIX has the fundamental building blocks to create inherent XBRL reporting functionality. Find out how PROPHIX can help you transition to XBRL!

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