Flex or Break? Extensions in XBRL Disclosures to the SEC

2011 ◽  
Vol 25 (4) ◽  
pp. 631-657 ◽  
Author(s):  
Roger S. Debreceny ◽  
Stephanie M. Farewell ◽  
Maciej Piechocki ◽  
Carsten Felden ◽  
Andre Gräning ◽  
...  
Keyword(s):  
Financial Statements ◽  
Relevant Information ◽  
Securities And Exchange Commission ◽  
Reporting Practices ◽  
Business Reporting ◽  
Disclosure Requirements ◽  
New Concepts ◽  
Information Consumers ◽  
The U.S ◽  
Made In

SYNOPSIS The Securities and Exchange Commission (SEC) has adopted the eXtensible Business Reporting Language (XBRL) in a multi-year program to enhance the functionality of the Commission's EDGAR database. Filers tag their financial statements with elements from a taxonomy that defines the reporting concepts so that the XBRL files can be understood by information consumers. The U.S. GAAP taxonomy was designed to represent common reporting practices and support the disclosure requirements of U.S. GAAP. If taxonomy elements for each disclosure concept are not present, the filer creates an extension element. Extensions, when used appropriately, provide decision-relevant information. When used inappropriately, particularly when a semantically equivalent element already exists in the foundation taxonomy, extensions add no information content. This research analyzes extensions made in a subset of XBRL filings made to the SEC between April 2009 and June 2010. Forty percent of these extensions were unnecessary, as semantically equivalent elements were already in the U.S. GAAP taxonomy. Extensions that aggregated or disaggregated existing elements comprised 21 percent of the extensions. New concepts accounted for 30 percent of the extensions, although many were variants of existing elements, rather than significantly new concepts.

Interoperability of XBRL Financial Statements in the U.S.

2011 ◽  
Vol 7 (2) ◽  
pp. 19-33 ◽  
Author(s):  
Hongwei Zhu ◽  
Harris Wu
Keyword(s):  
Global Financial Crisis ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Public Companies ◽  
Generally Accepted Accounting Principles ◽  
Business Reporting ◽  
Data Elements ◽  
The Global Financial Crisis ◽  
The U.S

In the wake of the global financial crisis, a pressing need exists for improving investor friendliness, especially the transparency and interoperability of the financial statements of public companies. eXtensible Business Reporting Language (XBRL) and XBRL taxonomies can accomplish this objective. In the U.S., the Securities and Exchange Commission (SEC) has mandated that all public companies must file their financial statements using XBRL and the U.S. Generally Accepted Accounting Principles (GAAP) taxonomy according to a phased-in schedule. Are the XBRL-based financial statements interoperable? This question is addressed by analyzing all of the annual XBRL financial statements filed to the SEC as of February 26, 2010. On average, 63% of data elements are not comparable between a pair of statements. The incomparability is partly caused by issues related to the GAAP taxonomy and misuse of the taxonomy by companies. The results have practical implications that will help improve the quality of financial data.

Adios! Airways: An Assignment on Mapping Financial Statements to the U.S. GAAP XBRL Taxonomy

2010 ◽  
Vol 25 (3) ◽  
pp. 465-488 ◽  
Author(s):  
Roger Debreceny ◽  
Stephanie Farewell
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Annual Reports ◽  
Business Reporting ◽  
Instructional Resource ◽  
Mapping Process ◽  
Interactive Data ◽  
The U.S

ABSTRACT: XBRL, based on XML, is an Internet language for disclosure of business reporting language. XBRL is the technological foundation for the interactive data mandate by the Securities and Exchange Commission (SEC). The mandate requires corporate filers to disclose data in quarterly and annual reports in XBL. A key building block supporting the mandate is a substantial U.S. GAAP XBRL taxonomy that encapsulates most of the reporting concepts found in financial reporting. Filers must align their existing reports to the taxonomy. The accuracy of mapping financial statement line items to the U.S. GAAP taxonomy is of fundamental importance. Mapping errors may be as simple as mapping to an incorrect taxonomy concept, which should be discovered during review. Ineffective mapping may lead to unnecessary extensions, which hinders comparability. This instructional resource guides students through the steps in mapping financial statement line items to the taxonomy. While the case does not require students to create an extended taxonomy, it does require completion of a spreadsheet detailing the mapping process that is typical of practice. In addition, the resource provides a checklist that users can refer to during the mapping process.

The Association between Extensions in XBRL Disclosures and Financial Information Environment

2015 ◽  
Vol 29 (3) ◽  
pp. 73-99 ◽  
Author(s):  
Shiyou Li ◽  
Emeka T. Nwaeze
Keyword(s):  
Financial Reporting ◽  
Financial Analysis ◽  
Relevant Information ◽  
Securities And Exchange Commission ◽  
Information Environment ◽  
Financial Information ◽  
New Concepts ◽  
Financial Disclosures ◽  
Definition Of ◽  
The U.S

ABSTRACT This study examines the association between XBRL extensions and financial information environments of firms, where “financial information environment” refers to the degree to which a firm's financial information is reflected in the information held/used by investors. An XBRL extension is a customized definition of a financial concept or reporting situation that is not available in the U.S. GAAP Financial Reporting Taxonomy. In 2009, the U.S. Securities and Exchange Commission (SEC) allowed firms to begin to use extensions to add new concepts in their financial disclosures. Critics express concerns that the reporting discretion permitted under the XBRL mandate will reduce comparability of financial disclosures and complicate financial analysis. Proponents contend that XBRL extensions will provide users with new and relevant information. To evaluate the competing views, we employ several proxies for financial information environment and perform analyses for early and later phases of XBRL adoption. We find that XBRL extensions are negatively (positively) associated with financial information environments of firms at the early (later) phases of XBRL adoption. The results for later periods of XBRL adoption provide support for the SEC's policy that allows registrants to use XBRL extensions to increase users' understanding of the information in financial statements.

Interoperability of XBRL Financial Statements in the U.S.

2012 ◽  
pp. 129-144
Author(s):  
Hongwei Zhu ◽  
Harris Wu
Keyword(s):  
Global Financial Crisis ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Public Companies ◽  
Generally Accepted Accounting Principles ◽  
Data Elements ◽  
The Global Financial Crisis ◽  
Practical Implications ◽  
The U.S

In the wake of the global financial crisis, a pressing need exists for improving investor friendliness, especially the transparency and interoperability of the financial statements of public companies. eXtensible Business Reporting Language (XBRL) and XBRL taxonomies can accomplish this objective. In the U.S., the Securities and Exchange Commission (SEC) has mandated that all public companies must file their financial statements using XBRL and the U.S. Generally Accepted Accounting Principles (GAAP) taxonomy according to a phased-in schedule. Are the XBRL-based financial statements interoperable? This question is addressed by analyzing all of the annual XBRL financial statements filed to the SEC as of February 26, 2010. On average, 63% of data elements are not comparable between a pair of statements. The incomparability is partly caused by issues related to the GAAP taxonomy and misuse of the taxonomy by companies. The results have practical implications that will help improve the quality of financial data.

Continuous Reporting and Continuous Assurance: Opportunities for Behavioral Accounting Research

2004 ◽  
Vol 1 (1) ◽  
pp. 91-102 ◽  
Author(s):  
James E. Hunton ◽  
Arnold M. Wright ◽  
Sally Wright
Keyword(s):  
Real Time ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Individual Investors ◽  
Monthly Basis ◽  
Software Applications ◽  
Exciting Line ◽  
Decision Making Processes ◽  
Market Factors ◽  
Information Consumers

The movement to more continuous reporting (CR) and continuous assurance (CA) of financial statements appears to be a matter of when and how such changes will take place, rather than if they will occur. Research evidence suggests that computing infrastructures and software applications have advanced to the point where it is now technically and economically feasible to begin preparing and disseminating financial statements on at least a monthly basis (Hunton, Wright, and Wright 2003), and someday it is likely that full or partial financial and nonfinancial disclosures will be processed and presented in real time. Additionally, information consumers are demanding, and the Securities and Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), and International Accounting Standards Board (IASB) are contemplating reporting and assurance changes of this nature. Thus, whether “continuous” is defined in terms of monthly, daily, hourly, or real-time reporting, rapidly converging market factors indicate that in the foreseeable future firms will publish and auditors will assure financial information on a more frequent basis than the current quarterly interval. The major challenge going forward for behavioral researchers in accounting is to investigate how changes of this nature might affect the decision-making processes and consequential outcomes of various constituent groups, such as investors, preparers, and assurers. The combinations of affected parties, contexts, and tasks that could be examined are too numerous to explore in a single article. Accordingly, to keep the following discussion focused and manageable, the scope of this paper is aimed at understanding the potential impact of CR and CA on individual investors. Perhaps by identifying a number of the psychological issues and reviewing some of the studies in this area, accounting behavioral researchers will be motivated to investigate many of the issues and opportunities related to this new and exciting line of research.

SEC XBRL Filing Requirements: An Instructional Case on Tagging Financial Statement Disclosures

2010 ◽  
Vol 25 (3) ◽  
pp. 489-511 ◽  
Author(s):  
Ernest Capozzoli ◽  
Stephanie Farewell
Keyword(s):  
Oil And Gas ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Statement ◽  
Publicly Traded ◽  
Item Level ◽  
Interactive Data ◽  
The U.S

ABSTRACT: On January 20, 2009, the U.S. Securities and Exchange Commission (SEC) released Rule 33-9002 for the phase-in of interactive data (SEC 2009a). An important component of this rule is the phase-in of detailed tagging of financial statement note disclosures. Tagging is the process of associating a taxonomy element with a financial statement concept for a particular context. While some of the filers have participated in the SEC Voluntary Filing Project and prepared instance documents tagged at the line item level most have not prepared detail-tagged notes to accompany the financial statements (SEC 2005; Choi et al. 2008). This case discusses the structure of disclosures, as they exist in the 2009 U.S. GAAP Taxonomy, followed by a discussion of dimensional extensions and concludes with an example of block and detailed disclosure tagging using Rivet Software’s Dragon Tag (Rivet 2009). The example uses the capitalized costs disclosure for Anadarko Petroleum, a publicly traded company. Following the example, the case requires students to block and detail tag the capitalized costs disclosure for Dig Deep, a hypothetical oil and gas company. By completing the case, students develop an understanding of the current U.S. GAAP taxonomy, skills relating to mapping and tagging processes, and make use of a commonly used XBRL taxonomy and instance document creation program.

scholarly journals Qualitative Assessment of Basel III Liquidity Standards and its Application in the UAE

2020 ◽  
Vol 4 (2) ◽  
pp. 118-129
Author(s):  
Manoj Kapur ◽  
Arindam Banerjee ◽  
Kunjana Malik
Keyword(s):  
Banking Sector ◽  
Financial Statements ◽  
Jel Classification ◽  
Qualitative Assessment ◽  
Basel Iii ◽  
Coverage Ratio ◽  
Disclosure Requirements ◽  
Short And Long Term ◽  
Made In

The Basel Committee for Banking and Supervision (BCBS) introduced two key liquidity ratios to strengthen the short- and long-term liquidity positions of the banks around the globe. These ratios were designed to achieve two key distinct objectives. Firstly, to encourage banks' short-term resilience to the liquidity risks by ensuring there are sufficient high-quality liquid assets to survive a significant stress which may last for 30 days. Calculation of this ratio is called as Liquidity Coverage Ratio (LCR). Secondly, to promote bank resilience over a longer time horizon, at least annually, by creating additional incentives for banks to fund their activities with more stable sources of funding. This led to creation of Net Stable Funding Ratio (NSFR). While these structural ratios are mostly quantitative, the underlying factors that are needed to calculate these ratios include qualitative factors as well. The paper analyzed the implementation of Basel III standards for the banking sector in the UAE. In particular, the timelines specified by the Central bank of the UAE and its implementation by the Domestic-Systemically Important Banks (D-SIBs) in the UAE was tracked by this paper. The study found a disconnect between the disclosure requirements by Basel III and disclosure made in the published annual financial statements of the banks. The study also discussed the extent of disclosures made by the D-SIBs and how relevant disclosures may improve the transparency of the liquidity risk management of the bank. JEL Classification Codes: E58, G32, G38.                        

scholarly journals Privately-Held Companies: Legislation, Regulation, and Limited Dissemination of Financial Information

2019 ◽  
Vol 47 (4) ◽  
pp. 28
Author(s):  
Zoeanna Mayhook
Keyword(s):  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Financial Information ◽  
Publicly Traded ◽  
Private Companies ◽  
Public And Private ◽  
Publicly Traded Companies ◽  
The Public ◽  
Disclosure Requirements ◽  
Privately Held

Publicly-traded companies have reporting and disclosure requirements set by the U.S. Securities and Exchange Commission (SEC), which includes the public disclosure of financial statements and an annual 10-K report. In contrast, privately-held companies most often do not meet the SEC filing requirements, and therefore, are not required to disclose financial information. For investors and business researchers, this can provide clear challenges for researching privately-held companies. This paper first highlights a sample of the significant legislation and rules affecting disclosure requirements of public and private companies. Then, it offers other government sources for company and industry financial information. Finally, it suggests further resources to educate business owners, investors, and business researchers.

scholarly journals Towards Relevancy In Financial Reporting: Mark-To-Market Accounting

2011 ◽  
Vol 14 (2) ◽  
pp. 33 ◽  
Author(s):  
Eunsup "Daniel" Shim ◽  
Joseph M. Larkin
Keyword(s):  
Financial Reporting ◽  
Market Value ◽  
Financial Statements ◽  
Relevant Information ◽  
Historical Cost ◽  
Reporting Practices ◽  
Reporting Requirements ◽  
Economic Reality ◽  
The Impact

<span>The objectives of this paper are to: discuss the relevancy vs. reliability of current financial reporting practices, survey the literature that describes the impact of mark-to-market accounting, and critically examine current CAAP financial statements by comparing them to market value financial statements. With theoretical discussions and a case study, this paper shows that the mark-to-market accounting could present better about the economic reality of transactions, and therefore, tends to provide more useful and relevant information than does historical cost financial reporting. This study suggests that if the object of financial reporting is to provide useful information to the users, existing GAPP financial reporting requirements need to be substantially changed in the direction of market value financial reporting.</span>

scholarly journals Equity Market Response to Form 20-F Disclosures for ADR Firms

2017 ◽  
Vol 9 (3) ◽  
pp. 233
Author(s):  
Michael H. Senteney ◽  
David L. Senteney ◽  
Mohammad S. Bazaz
Keyword(s):  
Home Country ◽  
Abnormal Returns ◽  
Financial Statements ◽  
Relevant Information ◽  
Share Price ◽  
Stock Exchanges ◽  
Market Response ◽  
Release Date ◽  
Disclosure Requirements ◽  
Reported Earnings

Non-U.S. companies may list securities in U.S. stock exchanges, provided that they file a set of audited financial statements as well as comply with extensive SEC disclosure requirements. We speculate that non-U.S. firms who choose to be listed in the major U.S. exchanges will comply with the supplemental disclosure requirements in order to have the supplemental disclosures impounded in the home country equity share price via the ADR share price in the manner described by Fishman and Hagerty (1989). We investigate the information content of non-U.S. firm’s earnings released vis-à-vis the SEC Form 20-F filings in both ADR and home country equity share markets. We employed models of the ADR and equity security share earnings release date abnormal returns controlling for the incremental firm-specific SEC Form 20-F disclosures required of exchange listed ADRs. Our results suggest that both ADR and home country equity share markets exhibit abnormal returns associated with the earnings release date. Particularly noteworthy, however, is the association between magnitudes of U.S. GAAP earnings and magnitudes of SEC Form 20-F filing date. Abnormal returns are significantly larger than the association between magnitudes of reported earnings and earnings report date abnormal returns in both the ADR and home country equity share markets. Our results seemingly suggest that the U.S. ADR share market’s response dominates the cross-market information flow, driving the home country equity share market response in a manner consistent with the notion that U.S. GAAP conveys price relevant information beyond reported earnings for non-U.S. firms.

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