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Learn more about XBRLThe SEC's ruling on December 17th will determine the timeline for using XBRL or "interactive data" to communicate financial results. Any change of this magnitude is certain to raise questions. PR Newswire and Vintage Filings are here to help you with this transition -- from providing you with the information you need to navigate the change to helping you tag, file and distribute your financial information. Whatever your needs or timeline, we're ready to help you manage your XBRL requirements. What is XBRL? And what are some of the benefits? XBRL, or “interactive data”, is an emerging business reporting standard used for publishing, exchange and analysis of financial reports and data. It is XML-based and focused specifically on the requirements of business reporting that will allow greater flexibility and ease in preparing and working with financial documents and records. XBRL uses tags, also known as identifiers, to code financial data. These tags are like bar codes attached to each piece of financial data, allowing investors to easily find and compare key financial figures. XBRL will also make financial information and regulatory filings from publicly traded companies more accessible to investors, making companies more transparent. The guiding principle behind the adoption of an XBRL standard is to facilitate ease of use in the preparation, analysis and communication of financial information across all software formats and technologies. Additional benefits include cost savings, greater efficiency and improved accuracy and reliability for both the issuers of financial data and the recipients of this data. How does XBRL work? XBRL is a global standard for business reporting that enables companies to mark up and transform financial information into a format that can be easily transmitted and shared via the Internet. Through the use of a series of defined financial terms, or tags, recipients of the data can easily search, sort, filter, compare and download financial information in ways never before possible. With XBRL, information from your earnings announcement can be easily pulled into the analyst’s model through an Excel plug-in, eliminating manual data entry errors, saving time and increasing the accuracy of the final report. For buy-side analysts and portfolio managers, easy extraction of data will expedite their analysis. The relative uniformity of XBRL-tagged data also means that analysts will be able to compare as-reported data from multiple companies, rather than relying on normalized data that often distort corporate financials. The SEC Votes to Mandate XBRL Filing – How Prepared Are You? On May 14, 2008, the Securities and Exchange Commission (SEC) approved the issuing of a rule proposal that, if enacted in its current form, will require domestic and foreign issuers that use US GAAP, and eventually those that use IFRS, to submit their primary financial statements and footnotes in XBRL format. Requirements for XBRL filing would follow a phased approach starting with the largest domestic and foreign accelerated filers (defined as those with a worldwide public float of $5 billion or higher, which equates to approximately 600 companies) submitting XBRL versions of financial reports and registration statements. If the rule is adopted this Fall, the initial group would be subject to XBRL reporting beginning with fiscal periods ending on or after 12/15/08, with submission to EDGAR and on the company’s own corporate Web site, if they maintain one. In year two, all other domestic and foreign filers would begin filing in XBRL format and in year three, all remaining companies would follow suit. In the initial year of a company’s filing, they would be required to provide single identifiers (tags) for each footnote but starting in year two of their XBRL submission, the company would be required to provide more detailed identifiers for elements within the footnotes themselves. XBRL documents would be submitted in addition to the official ASCII text or HTML filing but would be required to be submitted at the same time as the traditional filing. The only exception to this rule is that the first time that a company submits in XBRL format and the first time that they provide detailed tagging of their footnotes, the company would be allowed a 30 day grace period after the traditional filing during which they could submit their XBRL documents. After that initial filing, all subsequent XBRL submissions would need to be coincident with the traditional filing. Because the XBRL data is submitted as a supplement to their traditional filing, there would be limited liability associated with the XBRL version – much the same as in the SEC’s XBRL Voluntary Filing Program today. Although the proposal follows a phased approach, the SEC recommended that companies begin submitting XBRL data as soon as possible. When do you need to start thinking about and using XBRL? While the SEC will determine the timeline by which companies are required to start issuing their Edgar filings in XBRL, you may very well want to proactively adopt this standard for both your Edgar filings and your earnings releases, as this platform makes establishing a dialog with investors easier, faster and more accurate. XBRL is a new global standard in how financial and business information is reported and shared with others and is designed to: Improve the flow of information to the capital markets. XBRL, through its XML-based tagging structure makes data more “intelligent” with descriptive information bundled into each line item such as currency, language, reporting period, etc., thereby making it easier to use by analysts and investors. Increase visibility. Your financial and business information data be easily searched, extracted and downloaded from XBRL-enabled SEC filings, making your company easier and less expensive to analyze and follow. With the increasing cost of investment research and the related declining coverage of companies by investment analysts, XBRL offers companies a cost-effective way to gain greater exposure to the analyst community. Establish more efficient, effective dialogue with the markets. Providing more accurate, up-to-date and complete information to investors will improve access to new sources of capital, boosting awareness and thereby reducing the cost of capital. PR Newswire and Vintage Filings are ready to manage your XBRL Requirements. If you are one of the 500-600 companies with a $5 billion worldwide public float, PR Newswire, through its Vintage Filings division, can prepare you now. Let us test a document with you, tag it in XBRL and file it with the SEC. In this manner, you will get comfortable with the flow of information and data and see how easy it is to work with Vintage Filings, the fastest growing EDGAR filing agent in the U.S. Vintage Filings can manage all of the tagging and filing details – no hardware or software to buy – just have Vintage Filings work closely with you and your staff to ensure fast, accurate and cost-effective EDGAR filings in XBRL. Then when you’re ready to send your earnings release, PR Newswire can tag it for you, so that it, too, can play an integral role in your financial communications. If you are a mid-cap or small cap company who will not be required to file in XBRL until later in 2009, why not settle all the details now? Talk to the XBRL experts at Vintage Filings and ask any questions you may have. We’ll be glad to work with you in setting up your taxonomy (specific codes for financial data) now, so whenever the SEC mandates your first filing; it will go smoothly and easily.
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