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by Diane Mueller
The U.S. SEC recently issued new rules requiring companies to provide financial statement information on their corporate web sites in an interactive data format using the eXtensible Business Reporting Language (XBRL). This is good news because XBRLhas the potential to increase the speed, accuracy and usability of financial disclosures for investors while also ultimately reducing corporate costs.
Companies are now required to provide their financial statements on their corporate web sites in interactive data format using XBRL no later than the calendar day that they submit their financial statements to the SEC (1). In this format, financial statement information can be viewed interactively from your investor relations web sites, downloaded directly into spreadsheets, analyzed in a variety of ways using commercial off-the-shelf software and used within investment models in other software formats.
The U.S. SEC rules will apply to public companies and foreign private issuers that prepare their financial statements in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and foreign private issuers that prepare their financial statements using International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).