FASB invites comment on updated taxonomies
The US Financial Accounting Standards Board (FASB) has published its proposed 2024 DQC Rules Taxonomy (DQCRT), with accompanying release notes. This taxonomy captures validation rules produced by the XBRL US Data Quality Committee (DQC) in XBRL form, allowing them to be applied in reporting to the Securities and Exchange Commission (SEC). Companies use the validation rules to carry out automatic data quality checks on their financial reports, flagging up certain types of errors and inconsistencies for attention prior to submission, and ultimately improving the information the SEC collects.
This latest version of the DQCRT incorporates no less than 24 additional DQC rules, with additional proposed improvements relating to one more – making it the first time that new rules have reached double figures! Since the DQCRT was first published in 2020, the FASB has evaluated and added a growing subset of the DQC’s approved rules to each release, gradually expanding the utility of the taxonomy. Comments on the latest proposal are due by 5 October 2023.
The FASB has also issued proposed technical and other conforming improvements for the 2024 SEC Reporting Taxonomy (SRT). Together with the GAAP Financial Reporting Taxonomy (GRT), this makes up the ‘GAAP Taxonomy’ used for SEC reporting. Among this year’s updates, the SRT will now incorporate the Calculations 1.1 specification. As the FASB observes in the latest release notes, it “incrementally solves two issues with calculations; rounding and duplicate facts.” Comments on this version are due by 6 November 2023.