New data quality rules: 2022 DQC Rules Taxonomy out for review
In the United States, the Financial Accounting Standards Board (FASB) has published its proposed DQC Rules Taxonomy (DQCRT) and Technical Guide for 2022, including a number of new rules. It is now available for public review and comment until 23 September 2021.
The DQCRT combines validation rules from the XBRL US Data Quality Committee (DQC) with the taxonomies used for reporting to the Securities and Exchange Commission (SEC) in accordance with the US Generally Accepted Accounting Principles (GAAP). These are the GAAP Financial Reporting Taxonomy and the SEC Reporting Taxonomy, together referred to as the ‘GAAP Taxonomy.’ The DQCRT was first published in 2020, with a revision in 2021, and currently includes six rules applying to hundreds of XBRL concepts.
The DQC rules automatically catch certain kinds of errors and inconsistencies, allowing issuers to test and improve the quality of their data before submitting financial statements to the SEC, and ultimately improving the information available to investors and regulators. As it has recently noted, FASB seeks to add more DQC rules with each taxonomy release; the 2022 proposal incorporates a further nine new rules, plus substantive changes to one more.
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