On September 20, the Chairman of the Securities and Exchange Commission, Christopher Cox, announced that the combined market capitalization of companies submitting interactive data financial reports to the SEC has surpassed $2 trillion, consisting of more than 40 companies that participate in the SEC’s voluntary interactive data file program.
Interactive data refers to financial information provided using XBRL (eXtensive Business Reporting Language) or any other computer software language that labels companies’ financial data with codes from standard lists called “taxonomies” so that investors and analysts can more easily locate, and analyze and compare desired information in public companies’ financial statements.
In a September 25 Release trumpeted by the SEC last week as a forthcoming “major milestone,” the SEC announced that it has now completed all work on developing data tags for every element of the entire system of U.S. generally accepted accounting principles. However, the September 25 Release also noted that before a public review is initiated (expected in December of this year) the XBRL taxonomy for U.S. GAAP will be tested by third parties.
Now that “the last major obstacle” has been removed, Chairman Cox is reported to have asked the Staff of the SEC to make recommendations next spring on whether the use of XBRL should be required for all public company financial disclosures. Attorney Advertising