The XBRL US Regulatory Modernization Working Group (RMWG) submitted a letter to the Securities and Exchange Commission (SEC) with recommendations on the SEC’s approach to taxonomy development. There has been a significant increase in the number of final and proposed rules published by the SEC over the past few years which contain structured data requirements. New structured data requirements require the Commission to build new taxonomies or to augment existing taxonomies to support these programs. Observations of the RMWG include:
- Increasing trend of requiring multiple taxonomies to support a single rule.
- Clarification needed around use of linkbases.
- Labels in taxonomies are not consistently handled.
- Approach to XBRL format (XML, iXBRL, CSV, JSON) needs further clarification.
- Samples provided with draft taxonomies can become outdated.
The letter makes recommendations regarding timely notice of taxonomy and guidance changes, greater consistency in labels and reuse of elements.
Read the letter: XBRL US RMWG RE SEC TAXONOMY DEVELOPMENT APPROACH
The RMWG also prepared a number of case studies to illustrate some of the challenges with rule implementations. Read the case study: SEC Rule Implementation Case Studies June 2023