The Securities and Exchange Commission has announced that for public companies, interactive data financial reporting has been mandated on a phased-in schedule, beginning next year (2009).
"Interactive Data" allows report users who seek specific information from the source to quickly pinpoint the information, avoiding the manual, lengthy search process of corporate annual reports or mutual fund documents.
eXtensible Business Reporting Language (XBRL) is the technical language for creating interactive data. It provides major benefits in the preparation, analysis and communication of business information. It offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using financial data.
The largest companies who file using U.S. GAAP with a public float above $5 billion will be required to provide interactive data reports starting with their first quarterly report for fiscal periods ending on or after June 15, 2009. This will cover approximately 500 companies.
The remaining companies who file using U.S. GAAP will be required to file with interactive data on a phased-in schedule over the next two years. Companies reporting in IFRS issued by the International Accounting Standards Board will be required to provide their interactive data reports starting with fiscal years ending on or after June 15, 2011. Companies will be able to adopt interactive data earlier than their required start date. All U.S. public companies will have filed interactive data financial information by December 2011 for use by investors.
All SEC filers should look at CaseWare International's Working Papers software to automate their financial reporting and meet their XBRL filing needs.