New Tool Demonstrates Promise of XBRL
Washington, DC
XBRL US, Inc., the nonprofit consortium dedicated to the adoption of XBRL (Extensible Business Reporting Language), a technology standard for the reporting of financial and business information in the U.S., welcomes the introduction of a new XBRL-supported Mutual Fund Reader that demonstrates the usefulness of interactive data for mutual fund comparison. The new analytical interface, introduced by the Securities and Exchange Commission (SEC) yesterday, relies on data provided by mutual fund companies through the SEC’s Voluntary Filing Program. The SEC allows mutual fund companies to voluntarily provide risk/return summary information from their prospectuses using interactive data.
The new reader (http://a.viewerprototype1.com/viewer) allows investors to review a fund’s cost, risk, investment objectives and strategies as well as historical performance. The Risk/Return Taxonomy, which is a set of data tags for the information contained in the risk/return portion of the mutual fund prospectus, and which includes investment objectives, strategies, principal risks, historical fund performance and fund fee table, was developed by the Investment Company Institute (ICI), the national association of U.S. investment companies.
“The Mutual Fund Reader illustrates the kind of tools that can be developed through the power of interactive data,” noted Paul Schott Stevens, President and CEO, ICI, “We believe we’re only at the tip of the iceberg in terms of the kind of analysis that can be done with tagged information, ultimately bringing investors better quality data to make investment decisions.”
“Individual investors and their advisors stand to gain when more mutual fund information is in XBRL format and especially, when more tools are available to capitalize on the efficiencies and flexibility of interactive data,” said Mark Bolgiano, President and CEO, XBRL US, Inc., “The SEC’s new tool is designed to showcase the possibilities in analytical applications – now it’s up to the marketplace to build on what they’ve started.”
XBRL US is currently under contract with the SEC to build out the US GAAP Taxonomies and develop guidance on creating XBRL-enabled financial statements for preparers. These Taxonomies offer the possibility of other reporting applications where XBRL can improve the analytical process. The draft Taxonomies and documentation are available for public review and can be found at http://usgaap.xbrl.us.
About XBRL US, Inc.
XBRL US, the US jurisdiction of XBRL International, is a non-profit consortium representing the business information supply chain including accounting firms, software companies, financial databases, financial printers and government agencies. Its mission is to support the implementation of XBRL through the development of taxonomies relevant for use by US public and private sectors, working with a goal of interoperability between sectors, and by promoting adoption of XBRL through the collaboration of all business reporting supply chain participants. XBRL International is a non-profit consortium of approximately 550 organizations worldwide working together to build the XBRL language and promote and support its adoption.
About XBRL
XBRL (Extensible Business Reporting Language) is a royalty-free, open specification for software that uses XML data tags to describe financial information for public and private companies and other organizations. XBRL benefits all members of the financial information supply chain by utilizing a standards-based method with which users can prepare, publish in a variety of formats, exchange and analyze financial statements and the information they contain. The world’s leading accounting, financial, government and software organizations are involved in the adoption and use of XBRL in the U.S.
