There has been an interesting turn of events in the SEC’s stance on XBRL filings. Since the start of the SEC’s phased mandatory filing programme back in 2009, there had been little to compel filers to care very much about the quality of the XBRL documents they have been submitting.
Today, things are changing.
It was revealed last week that the SEC has been sending written warnings to CFO’s about poor quality data. Letters refer to a flouting of existing rules and expressly urge filers to “take the necessary steps to ensure that [they] are including all required calculation relationships”.
This is a distinct hardening of the SEC’s attitude towards delinquent filers. Enforcement of data quality standards is overdue and will be welcomed by investors and analysts.
So, where does this leave filers? How can they make sure they have included all those calculation relationships and complied with the SEC’s rules?
CoreFiling’s Magnify® is still the most powerful data quality tool on the market. It provides an easy, checklist-driven way to take a closer look at XBRL filings. Significantly for SEC filers, Magnify lets you check areas of your documents typically prone to error, such as calculations. With any inconsistencies clearly highlighted, you can see at a glance which calculations are being applied to the report, enabling you to verify that all possible calculations have been included.
The SEC letter encourages filers to review the EDGAR Filer Manual rule regarding calculations. Magnify incorporates all the EFM rules so you can check for full compliance; it automatically highlights any discrepancies, and lets you delve into the detail so that you can take any remedial action; it also supports the XBRL US Consistency Suite, and the Consistency Checks form an integral part of Magnify’s document review process, so you really can do an in depth quality review.
So, companies that don’t want to be caught out by the SEC’s tougher stance on XBRL filings should take a look at how Magnify can help you avoid the pitfalls and achieve quality filings.