Contenu connexe Similaire à Common XBRL Misconceptions (20) Plus de DisclosureNet (9) Common XBRL Misconceptions3. www.DisclosureNet.com | Copyright © 2013 DisclosureNet™
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the SEC’s XBRL grace period ends.
It’s time for organizations to focus on XBRL compliance
and learn the truth about common XBRL misconceptions.
October 31, 2014
On
7. www.DisclosureNet.com | Copyright © 2013 DisclosureNet™
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Extension tags are overused.
One study
reveals that
22.2%
of reports from
the financial industry
use them.1
1
Columbia Business School Center for Excellence in Accounting and Security Analysis.
Democratizing Transparency. New York: 2010. http://www4.gsb.columbia.edu/filemgr?file_id=7216992
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Align filings with XBRL best practices.
One Solution:
Source in-house software that offers
access to precedents and searchable
XBRL taxonomy and tags.
XBRL
</>
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Outsourcing is
more expensive.
costlier than filing XBRL
documents in-house.2
XBRL
</>
30%
2
Gartner. Financial Statement Production Solution Increase Market Penetration. Stamford: 2010.
http://www.gartner.com/id=1466426
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XBRL
</>
And…
It shifts accountability from the filer to the outsourcer.
This leaves room for errors and doesn’t allow for
internal XBRL proficiency to grow.
XBRL
</>
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Other negative implications include
Security issues
Poor reporting
work processes
Higher risk
for errors
Longer turnaround
times & potential
for late filings
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23
When it comes to in-house vs. outsourcing, the
numbers speak for themselves…
In 2012, 50% of large accelerated filers
chose to bring the tagging in-house.3
3
LogixData Analysis of XBRL Vendors and Their Market Share for 2012 and 2011. 13 Feb, 2013.
http://www.logixdata.com/blog/bid/143011/Analysis-of-XBRL-vendors-and-their-market-share-for-2012-and-2011
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….this is a ~25% increase
from the year before.4
4
LogixData Analysis of XBRL Vendors and Their Market Share for 2012 and 2011. 13 Feb, 2013.
http://www.logixdata.com/blog/bid/143011/Analysis-of-XBRL-vendors-and-their-market-share-for-2012-and-2011
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“XBRL in no way requires a company to
change how, what, or when to report financial
information. It does not provide more data
than standard financial statements.”5
5
XBRL US. XBRL US GAAP Taxonomy Preparers Guide. Washington: 2008. http://xbrl.us/Documents/PreparersGuide.pdf
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Filers report the same information, but XBRL
presents it in a computer readable format to
make it more digestible.
XBRL
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Filers should remember:
XBRL reporting is for the benefit of investors.
Using it won’t put you at a competitive disadvantage.
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For Example - Radyne Corporation
Company’s trading averages
before XBRL adoption:
After XBRL adoption:
20,000shares/day
135,000shares/day6
6
PR Newswire. XBRL for the IRO: Benefiting from Interactive Data. PR Newswire Association LLC: 2011.
http://promotions.prnewswire.com/rs/prnewswire/images/WP_XBRL_Benefiting_from_Interactive_Data.pdf
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After this date, penalties for XBRL
noncompliance will likely become harsher.
the SEC’s XBRL grace period ends.
October 31, 2014
On
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…of those filings, 5,000 problems were identified.7
Last year, 1,400 XBRL filings were submitted to the SEC…
7
XBRL US. Avoiding Common Errors in XBRL Creation. Washington: 2010.
http://xbrl.us/research/documents/avoidingerrorswhitepaper.pdf
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Companies need to focus on reducing
errors by making a stronger effort to
learn XBRL inside and out.
XBRL
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Taking responsibility for XBRL reporting
now will mean a decreased risk for harsher
SEC penalties after the grace period ends.
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Read this:
Find out what’s up and coming for XBRL this year.
Read our whitepaper XBRL Trends to Expect in 2013
Print this:
Or see who comes out on top – in-house or outsourced
XBRL solutions - in this XBRL Cup Infographic
Resources
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