October, 2022

The Securities and Exchange Commission (SEC) finalized two new rules with XBRL requirements. Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements adopts amendments for annual and semi-annual shareholder reports provided by mutual funds and exchange-traded funds to highlight key information for shareholders and format the disclosures in Inline XBRL. The Commission is providing an 18 month transition period after the effective date of the final rule amendments for open-end funds to comply. Read the fact sheet.

Separately, the Commission adopted a final rule on Listing Standards for Recovery of Erroneously Awarded Compensation which requires national securities exchanges to establish listing standards that call for issuers to adopt and comply with a compensation recovery policy (often known as a clawback policy). The rule will require issuers to provide disclosures about such policies and how they are being implemented, and requires the new compensation recovery disclosures to be structured in Inline XBRL. Read the fact sheet.

The Financial Accounting Standards Board (FASB) published technical improvements for the 2023 GAAP Taxonomy, and announced public exposure for two new technical proposals that aim to assist preparers and data users. The FASB published release notes describing the proposed technical changes to the 2023 GAAP Taxonomy.

Separately the FASB published two proposals related to relationships defined in the GAAP Taxonomy. The first, Proposed Policy Election Element Relationships, was out for a comment period that has already closed. The second, Proposed Meta Model Relationships, is out for public exposure until January 10, 2023. All interested parties are invited to comment. To help issuers, software developers and data consumers better understand these proposals, the FASB and XBRL US conducted an educational webinar on November 2, 2022. Watch the replay.

XBRL US responded to two climate-related Requests for Information published by U.S. Government agencies. The Environmental Protection Agency (EPA) asked for feedback on Revisions and Confidentiality Determinations for Data Elements Under the Greenhouse Gas Reporting Rule, Docket Id. No. EPA–HQ–OAR–2019–0424. The XBRL US comment letter made the argument that data collected by the EPA about greenhouse gas emissions produced by facilities should be in structured, machine-readable (XBRL) format, and also that the EPA should require the use of the Legal Entity Identifier (LEI) by facilities submitting this data so that parent companies can be appropriately associated with their subsidiary facilities. The absence of standardized identifiers associated with the parent company makes it difficult and time consuming to easily and unambiguously identify the parent company.

Separately, the Commodities Future Trading Commission (CFTC) published a Request for Information on Climate-Related Financial Risk. The XBRL US comment letter explained the importance of data standards in understanding and conducting oversight of climate-related financial risk by the CFTC. Climate-related financial risks that affect market participants and commodities will inevitably affect the derivatives on which they are based. Buyers and sellers of derivatives should be protected from these risks just as those that may invest directly in the underlying asset.

XBRL US Events

Webinar: Variable Annuity & Life Insurance Cos – Get the Skill Set for XBRL, November 15, 2022, 3 PM ET
Compliance requirements with XBRL will start for the first time for variable annuities early next year. Attend this session to learn from XBRL experts from Broadridge Financial Solutions, DFIN, Novaworks, and Toppan Merrill with decades of experience working with investment management companies. Get specifics about the SEC rule, learn how to XBRL format the N3, N4, and N6, and discover how workflow will change. Register: https://xbrl.us/events/221115/

Webinar Replay: FASB Meta Model Invitation to Comment and Proposed Policy Election Element Relationships
Hear Dave Shaw, Senior Project Manager – XBRL at the Financial Accounting Standards Board (FASB), and XBRL US CEO Campbell Pryde, on proposed changes to the US GAAP Taxonomy to reflect policy election element relationships, and meta model relationships. These proposed changes are designed to make it easier for issuers to find elements, and improve the usefulness of reported data. Moderated by KPMG’s Director of Compliance Solutions, Joe Luczka. Watch the replay: https://xbrl.us/events/221102/

Webinar Replay: Get Started on the SEC’s Pay Vs Performance Disclosure Requirements
Hear the Securities and Exchange Commission’s Jeb Bryne from the Division of Corporation Finance, outline basics about the rule. Find out how to successfully comply with first-time requirements rendering executive compensation data in the proxy statement in machine-readable format. Speakers also include Lisa Cousino of Broadridge Financial Solutions, and Scott Theis of Novaworks, and chair of the XBRL US Domain Steering Committee. Watch the replay: https://xbrl.us/events/221026/

Upcoming XBRL US Steering Committee and Other Member Meetings

The Data Quality Committee held its most recent meeting on September 21, 2022. Get information about the Committee: https://xbrl.us/dqc.

The Domain Steering Committee will meet Tuesday, December 20, at 2PM ET. https://xbrl.us/events/dsc-220816 – all XBRL US Members are invited to attend

The Communications Steering Committee will meet Tuesday, December 20, at 3 PM ET. https://xbrl.us/events/csc-220816 – all XBRL US Members are invited to attend

The Regulatory Modernization Working Group will meet Tuesday, December 13, at 3 PM ET. (membership@xbrl.us for details)

The Standard Government Reporting Working Group will meet Tuesday, November 22, at 12:30 PM ET. (membership@xbrl.us for details)

XBRL US Members are encouraged to attend and get involved.

XBRL US Members are committed to engaging and collaborating with other members, contributing to the standard through involvement of their teams, and striving to build awareness and educate the market. Members of XBRL US represent the full range of the business reporting supply chain.

Not yet an XBRL US member? Maybe it’s time to consider joining XBRL US for yourself ($55 – $525/ year) or your organization (fees vary, starting at $525 annually). Find out more about the benefits of membership and how to become involved by visiting https://xbrl.us/benefits.