SEC shares insights into impact of machine‑readable disclosures
The US Securities and Exchange Commission (SEC) recently released the latest in its semi‑annual series of reports to Congress, as mandated under the Financial Data Transparency Act (FDTA), offering a sweeping view of machine‑readable corporate disclosures across all the agency’s activities. The report details the SEC’s public and internal use of digital data, examines enforcement outcomes, and dives into insights on the evolving and ever-important cost-benefit analysis of structured data use (hint – the benefits, once again, outweigh the costs).
The SEC found that 43 out of 55 core disclosure forms now include machine‑readable data, with iXBRL and XML used extensively – with that number remaining static since the last report. Cross-agency efforts to develop joint data standards were highlighted, including useful tools like FSQV and iView, which support internal analytics. Since the last report, machine‑readable data has supported a number of enforcement actions on earnings management and cybersecurity lapses.
Since adopting XBRL in 2009 and iXBRL in 2018, the SEC has steadily expanded structured disclosure. The FDTA requires these regular reports on all things machine-readable in reporting until 2029, helping Congress keep track of the impact going structured is having.
These reports provide fresh evidence of XBRL’s value across use cases, from enforcement to investor protection, highlighting the benefits of harmonised digital data standards across agencies and jurisdictions.
Explore the report here.
