“Making a difference”: More new US data-quality rules now out for review
The XBRL US Data Quality Committee (DQC) has this week published its 18th Ruleset for a 45-day public review and comment period, running until 30 May 2020. These freely available rules allow filers to carry out automated checks on their XBRL-formatted financial reports, and correct data-quality issues prior to submission to the Securities and Exchange Commission (SEC). While validation rules like these cannot detect all errors, they are very good at catching inconsistencies, mismatches and implausible data points.
The DQC rules cover both IFRS and US GAAP reporting, with the latest ruleset adding five new rules specific to US GAAP filers. They are developed through consultation with stakeholders, with the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) acting as observers of the DQC and providing guidance. The FASB is also incorporating tried-and-tested rules into an expanding Data Quality Committee Rules Taxonomy (DQCRT), which is released alongside its financial reporting taxonomies and currently comprises 15 DQC rules.
“Our collaboration with the DQC is based on the premise that establishing a single set of agreed-upon rules can provide a baseline for data quality”, says Louis Matherne, Chief of Taxonomy Development at the FASB. “This industry-driven approach is making a difference as we see better quality data coming out of the filings submitted to the SEC. That’s why we incorporate the DQC rules into the US GAAP Taxonomy – to encourage their use by all filers.”
Filers, data providers, investors, accountants, and software vendors are all encouraged to provide their feedback on the proposed rules.
