For publicly-held companies that file reports, the U.S. Securities and Exchange Commission (SEC) now requires tagging of quarterly and annual reports on Forms 10-Q and 10-K using eXtensible Business Reporting Language (XBRL). XBRL tagging is now a key part of the financial statement production process. In many companies, this production process entails a number of different players using a variety of documents and spreadsheets, providing the opportunity for error, inconsistency and inflated costs.
To find out how companies are complying with these XBRL tagging requirements, FERF surveyed members of FEI and other financial statement preparers. Executives from 300 unique companies responded to the survey.
· The most significant challenges mentioned in complying with the XBRL mandate are getting educated on XBRL and addressing the review process.
· XBRL had a limited impact on respondents’ SEC filing dates:
· 72% of large accelerated filers (Tier 1 and Tier 2) reported one day or less delay due to XBRL; and
· Over 90% of Tier 3 filers reported one day or less delay due to XBRL.
· The majority of respondents found that XBRL was either somewhat or significantly easier the second time around.
· Tier 1 and Tier 2 XBRL filers predicted a higher likelihood than Tier 3 XBRL filers of changing their XBRL process, with the vast majority of companies anticipating a change opting for an in-house software solution.
· In-house and built in solutions continue to increase their significant market share.
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