August 19 webinar will address recent trends in errors made by filers and how to avoid them
The XBRL US Data Quality Committee (DQC) has published its 13th Ruleset for a 45-day public review and comment period, which closes on September 17, 2020. The DQC has also approved and published its 12th Ruleset. DQC rules aid US GAAP and IFRS issuers in preparing consistent, error-free financials, by providing automated checks that test an XBRL-formatted financial statement prior to SEC submission. Issuers that use the rules can find and correct errors, to ensure that regulators and investors are provided with good quality data and the most accurate view of corporate financial health. Filers, data providers, investors, accountants, and preparation tool providers are encouraged to review and comment on the proposed rules. Access the public review.
The latest Ruleset contains three new US GAAP rules which alert filers to situations where 1) there has been invalid use of elements associated with liability revenue recognized; 2) elements are used in the financial statement presentation that have no associated calculation; and 3) invalid use of the consolidation axis.
The DQC is holding a webinar on August 19 to explain the new draft and finalized rules, and to review an in-depth analysis of recent trends in filer errors made in SEC submissions. Register for the free webinar.
“We analyzed historical results to identify the most common mistakes made by issuers,” said Joan Berg, Director of XBRL Services at Toppan Merrill, and Chair of the XBRL US Data Quality Committee, “For example in the March 2020 quarter, we found 4,000 facts where filers had used axes incorrectly, and roughly a quarter of those errors came from misuse of the Legal Entity Axis, by 21 companies. These companies did not take note of changes made by the FASB in the US GAAP Taxonomy which moved the Parent Company Member to a different axis. These errors would have been flagged if these companies had used the DQC rules.”
The XBRL US Filing Results & Quality Checks application allows SEC Filers or other interested parties to check EDGAR submissions for DQC errors for any company here.
Graphical depictions of historical DQC error count, categorized by rule type, can be seen here.
The DQC, which is funded through the XBRL US 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. All approved rules and guidance are free and publicly available.
Filers have immediate access to all final approved rules as well as the 13th Ruleset in public review so that they can check their filings prior to SEC submission. There are several options available to filers:
- Through software that has been certified to run with the ruleset: https://xbrl.us/certification
- Through the XBRL US checking tool: https://xbrl.us/check
- By downloading the Approved Rules and using them with Arelle – the open source version of the SEC’s EDGAR Renderer/Previewer: https://xbrl.us/dqc-releases
Access the approved rules and guidance.
Members of the XBRL US Center for Data Quality include Altova, the American Institute of CPAs (AICPA), Broadridge Financial Solutions, Certent, DataTracks, Donnelley Financial Solutions (DFIN), P3 Data Systems, RDG Filings, Toppan Merrill, and Workiva.
For more information on the XBRL US Data Quality Committee and the Center for Data Quality, go to: http://xbrl.us/data-quality