April/May 2019

Legislative and Regulatory News


About XBRL US and Membership

Legislative and Regulatory News
SEC Publishes Draft EDGAR Filer Manual

The SEC published the draft EDGAR Filer Manual which includes the following XBRL-related topics:

  • Filers will be able to include cover tags within any Inline XBRL document set for submission forms that permit Inline XBRL. EDGAR will warn filers if any required cover tags are missing, nil, or empty in 10-K, 10-K/A, 10-KT, 10-KT/A, 10-Q, 10-Q/A, 10-QT, 10-QT/A, 8-K, 8-K/A, 8-K12B, 8-K12B/A, 8-K12G3, 8-K12G3/A, 8-K15D5, 8-K15D5/A, 20-F, 20-F/A, 40-F, and 40-F/A when these are submitted as Inline XBRL format.
  • EDGAR will no longer provide support for the US-GAAP 2017, EXCH 2017, and CURRENCY 2016 taxonomies. EDGAR will also be updated to support the 2019 version of IFRS Taxonomy.

The final EFM is expected to be published in June 2019.

Read the release: https://www.sec.gov/info/edgar/specifications/edmanuals

SEC Proposes XBRL for Reporting by Business Development Companies & Closed End Funds

On April 9, 2019, the Securities and Exchange Commission posted to the Federal Register a proposal to require the use of structured data for:

  • Business Development Companies (BDC) submitting financial statement information using Inline XBRL
  • BDCs and closed end funds (CEF) to include structured covered page information in their registration
  • statements on Form N-2 using Inline XBRL

  • certain information required in an affected fund’s prospectus to be tagged using Inline XBRL, and
  • filings on Form 24F-2 to be submitted in XML format

Comments on the proposal are due 60 days from the date of publication in the Federal Register. The official publication date is April 10, 2019.

Read the proposal: https://www.federalregister.gov/documents/2019/04/10/2019-05776/securities-offering-reform-for-closed-end-investment-companiesl

SEC Finalizes FAST Act Requires XBRL Tagging for Cover Page

On March 20, 2019, the Commission mandated the FAST Act Modernization and Simplification of Regulation S-K, which includes a requirement that all companies filing Forms 10-K, 10-Q, 8-K, 20-F and 40-F must tag the cover pages of these documents using Inline XBRL. The goal of the rule is to further enhance investors’ use of interactive data to identify, count, sort, compare, and analyze registrants and their disclosures. Compliance phases in over a three year period, matching the compliance dates of the Inline XBRL requirement for operating companies.

Read an FAQ about the new requirements: https://xbrl.us/qa-sec-fast-act/

Read the rule: https://www.sec.gov/rules/final/2019/33-10618.pdf

Small Business Administration Accepts XBRL Data for Surety Bond Guarantee Program

SBA’s Surety Guarantee Plan A program is now able to accept XBRL-formatted Work-in-Process (WIP) reports. The SBA guarantees surety bonds for certain surety companies, which allows the companies to offer surety bonds to small businesses that might not meet the criteria for other sureties.

“SBA has been helping small businesses innovate and grow for decades”, noted Peter Gibbs, Director, Office of Surety Guarantees, U.S. Small Business Administration, “This move to data standards will automate what has been a laborious process, and it will free up small contractors and their bond agents to focus on expanding their business.”

Read the release: https://xbrl.us/news/sba-accepts-xbrl/

FERC Proposal on Transmission Investment Activity References Use of XBRL

On March 28, 2019, the Federal Energy Regulatory Commission (FERC) published a proposal, “Inquiry Regarding the Commission’s Electric Transmission Incentives Policy” regarding Form 730, Report of Transmission Investment Activity. This report contains data about actual and projected electric transmission capital spending. One of the questions raised in the proposal is:

Should the Commission upgrade the FERC–730 filing format to XBRL or another format or standard? If so, what filing format would be most beneficial and useful to filers and users of the information? Initial comments are due June 25, 2019.

Read the proposal: https://www.govinfo.gov/content/pkg/FR-2019-03-28/pdf/2019-05895.pdf

Florida Publishes RFP for XBRL Taxonomy for Municipal Reporting

In March 2018, the state of Florida passed HB 1073, legislation requiring the use of XBRL for municipal financial reporting. On April 1, the Request for Proposal to build the XBRL Taxonomy supporting this initiative was issued.

Read the RFP: http://www.myflorida.com/apps/vbs/vbs_pdf.download_file?p_file=F5918_181902RFPACFinal.pdf

California State Bill 598 Passes Two State Senate Committees

SB 598, a bill introduced in California by Senator John Moorlach, passed unanimously through both the Senate Government Organization Committee and the Governance and Finance Committee. The bill calls for the creation of the Open Financial Statement Commission, consisting of nine members. The bill would require the commission, by January 1, 2021, to report to the Legislature and make recommendations regarding how and whether to transition financial reporting by state and local agencies to a machine readable (Inline XBRL) format.

The bill is scheduled to go to Senate Appropriations by May 17, to the Senate Floor by May 31, then onto Committees and a Floor vote in the Assembly. All bills have to be approved by both Houses before September 13.

Read the legislation: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB598

XBRL US Data Quality Committee Publishes 9th Ruleset for Public Review

The 9th Ruleset is published for a 45-day public review and comment period ending June 15, 2019. In addition to updating existing rules, the latest ruleset contains a new category of checks that evaluates and identifies incorrect calculation relationships in the SEC filers company taxonomy. The rule works by looking at the calculation relationships defined in the filers extension taxonomy and compares that to the US GAAP taxonomies to identify contradictions.

Read the release: https://xbrl.us/news/dqc-ruleset9-public-review

Review and comment on the rules: https://xbrl.us/public-review

XBRL US State & Local WG Members Author AGA Article

Members of the XBRL US State & Local Government Disclosure Modernization Working Group authored the article “Building Momentum, Preparing for XBRL in Government” which appeared in the Spring 2019 edition of the Association of Government Accountants (AGA) Journal of Government Financial Management. Authors are Shannon N. Sohl, Ph.D., CPA, who is a senior research associate at Northern Illinois University’s Center for Governmental Studies; Jacqueline Reck, Ph.D., CPA, who is a professor in the Muma College of Business, University of South Florida; and Tammy R. Waymire, Ph.D., CPA, who is an associate professor of accounting in the Jones College of Business, Middle Tennessee State University.

Read the article: https://xbrl.us/wp-content/uploads/2019/04/AGAJournal_Spring2019_XBRL.pdf

XBRL US Surety Working Group Launches Public Review for Contractor Financial Taxonomy

The new taxonomy contains data standards to capture income statement and balance sheet information about contractors. The taxonomy was created by starting with an initial set of data standards contributed by Crowe LLP, a public accounting, consulting, and technology firm. The XBRL US Surety Working Group, which is comprised of surety carriers, bond agents, and software companies, then further refined the data fields and definitions, and expanded on the initial set of standards. The public review and comment period will end in 60 days.

Read the release: https://xbrl.us/news/public-review-contractor-financials/

Visit the public review: https://xbrl.us/xbrl-taxonomy/2019-contractor/

CFA Institute Posts Blog on XBRL and Audit

Mohini Singh, ACA, Director of Financial Reporting, at the CFA Institute commented that with the mandate to use Inline XBRL for corporate filings in the United States and in Europe, it is time to begin considering audit for the XBRL version of the filing. The blog points out that:

“Only the human-readable layer of information needs to be audited. Even if the machine-readable layer was required to be audited, no standards exist by which to do so. Investors, however, expect both layers of the filing to be audited. With both the United States and the European Union requiring Inline XBRL filings (and with Asian jurisdictions expected to follow suit), the time has come to at least start a discussion about the development of standards.”

Read the blog: https://blogs.cfainstitute.org/marketintegrity/2019/03/26/the-time-to-develop-standards-to-audit-digital-xbrl-filings-has-come/.

Upcoming Webinars from XBRL US

  • XBRL Data Community Update for Members
    Thursday, May 23, 1 PM EDT
    XBRL US Members are invited to the next update, where staff will: 1) give a technical show-and-tell for using the Angular framework to retrieve and display XBRL API data on the web; 2) review how to use the offset parameter to get all the details for queries, and; 3) login to the Database of Public Filings with pgAdmin for a quick overview of this resource, which is available to all XBRL US Members above the Basic Individual level.

    Register: https://xbrl.us/20190523

  • Getting Successful Standards to the Finish Line – FASB and FDIC Case Studies
    Wednesday, May 29, 3PM EDT
    This session will feature examples of successful standards programs in the United States. Hear from the leads on these programs about the problem the standards were intended to solve, the solution put in place, initial results, and how the program has evolved over the years.

    Register: https://xbrl.us/events/201905029/

Replays of Recent Events

  • Inline XBRL Webinar Series

  • Municipal Finance Data Forum, April 24
    Hear speakers and download slides (from selected speakers) from Americans for Financial Reform, the Do Good Institute, The Pew Charitable Trust, U.S. Census, the Office of Financial Research, U.S. Treasury, the Reason Foundation and more. The event took place in Washington, DC and covered how financial data standards can help states and municipalities improve the efficiency of reporting, reduce costs, and provide reporting entities with better data to set policy.

    Watch and listen: https://xbrl.us/events/municipal-finance-data-forum/

Recent Point of View Topics

  • Can you name the top ten filings in 2017?
    Campbell Pryde, President and CEO, XBRL US – https://xbrl.us/ten-biggest
  • The right tools for when it absolutely, positively, has to be done right
    Ami Beers, Director – Assurance and Advisory Services, Corporate Reporting, Association of International Certified Professional Accountants (AICPA); Member, XBRL US Data Quality Committee – https://xbrl.us/right-tools

Upcoming Speaking Roles for XBRL US Staff

Register to Attend XBRL US Data Quality Committee Meeting, Wednesday, July 15 at Noon EDT

At this meeting, industry leaders will participate in discussions and plans for developing guidance and rules for use by public companies complying with the XBRL requirements of the US Securities and Exchange Commission.

Get information about the Committee and register to attend: https://xbrl.us/dqc

Upcoming XBRL US Steering Committee Meetings

  • The Domain Steering Committee: Thursday, June 6 at 3 PM EDT
  • The Communications Steering Committee: Tuesday, May 21, 2019 at Noon EDT
  • Upcoming XBRL US Meetings: https://xbrl.us/membership

XBRL US Members are invited to attend and get involved. Email membership@xbrl.us for details.

About XBRL US and Membership

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. This organization recently joined XBRL US:

IFIC Surety Group is the largest privately owned surety company in the industry. Today, we operate out of 20 regional locations throughout the United States. Our major lines of business include: Contract, Commercial, Subdivision, Specialty, and Bail. Through close partnerships with our network of independent agents, our regional offices have the resources to make quick and informed underwriting decisions.

Not yet an XBRL US member? Maybe it’s time to consider joining XBRL US for yourself ($55 – $500/ year) or your organization (fees vary). Find out more about the benefits of membership and how to become involved by visiting https://xbrl.us/benefits.

About Data Quality

SEC filers should all use freely available, Data Quality Committee rules to identify and resolve errors in XBRL-formatted financials for more consistent, better quality data.

Learn about the Rules & Guidance https://xbrl.us/rules-guidance
Find Data Quality Certified applications: https://xbrl.us/certification