CFA Institute seeks mandatory Inline XBRL. Urges audit and more Structured Data
The CFA Institute this week provided comments on the US SEC’s proposed switch to Inline XBRL.
The comment letter is crystal clear about the importance of structured data for every public company. It comes out strongly against the notion that some smaller companies might be exempted from Inline XBRL filings rules.
Moreover, the Institute recommends the wider use of Inline XBRL documents by companies, to ensure that markets are able to make better decisions. The letter suggests that “any data that is valuable enough to be required, and is used by investors and analysts should be reported in computer-readable form.” The Inline XBRL specification should be used in preference to traditional XBRL for these purposes. The letter recommends the use of Inline XBRL for a range of disclosures, including company Earnings Release and Management Discussion and Analysis (or MD&A).
Importantly, the letter states that 77% of CFAs surveyed believe that tagged data should be subject to external audit and assurance.
We recommend that regulators, auditors, public companies and market intermediaries around the world review the CFA Institute’s recommendations. The letter is available here.