Issuers, vendors & analysts are invited to Aug 2 webinar for a guidance review
XBRL US announced that the Data Quality Committee (DQC) has initiated a public review period for the fifth set of freely available, proposed rules, in addition to a detailed guide on how to prepare XBRL-formatted cash flow statements that produce good quality financial data. The public review period will end on September 5 and is being held simultaneously with the public review for the 4th ruleset which is scheduled to close on August 15. A webinar will be held on August 2 for a review of the guidance and rules, and instruction on how to provide feedback.
DQC rules and guidance are designed for issuers to use to identify and correct errors in their SEC filings. The DQC, which is funded through the Center for Data Quality, is responsible for developing guidance and validation rules that can prevent or detect inconsistencies or errors in XBRL data filed with the SEC, and focuses on data quality issues that adversely affect data analysis. Issuers, data aggregators, XBRL software and service providers, as well as analysts are invited to review the 4th and 5th rulesets, and The Statement of Cash Flow Guidance to provide feedback that will be reviewed and potentially incorporated into the final guidance.
The SEC recently updated the EDGAR Filer Manual to require the reference as the primary consideration for selecting the appropriate element. The Cash Flow Guidance aligns directly with the FASB codification references and will aid filers with proper structure and tag selection of the concepts on the cash flow statement using the US GAAP Financial Reporting Taxonomy. It provides direction on identifying the statement in the taxonomy and proper use of elements to represent topics such as financing and investing activities, interest and income tax, gross and net cash flows, and cash and cash equivalents.
“The cash flow guidance was developed as the DQC recognized that this statement represents one of the biggest challenges for filers in preparing their XBRL,” said Campbell Pryde, CEO of XBRL US, “Adhering to standard guidance based on financial reporting requirements will help filers create better data. We look forward to getting further input from the market through the public review, so that we can establish standards that work for all stakeholders.”
The 5th ruleset contains 11 new topics related to the cash flow guidance including calculation weights in operating cash flow, accrual items used in investing and financing cash flow reconciliation, among others. Visit the public review page.
Members of the XBRL US Center for Data Quality include Altova, the American Institute of CPAs (AICPA), Certent, DataTracks, Merrill Corporation, P3 Data Systems and Toppan Vintage. For more information on the XBRL US Data Quality Committee and the Center for Data Quality, go to: http://xbrl.us/data-quality