SEC Proposed 2018 Reporting Taxonomy
The U.S. Securities and Exchange Commission (SEC) has now announced its preliminary 2018 reporting taxonomy following a formal public review of the proposal. The 2018 SEC Reporting Taxonomy (SRT) moves a range of elements from the GAAP Financial Reporting Taxonomy into a new taxonomy that can be used for companies reporting under both IFRS and US GAAP.
The broad categories addressed in the SRT include:
- The oil and gas industry
- Financial schedules
- Condensed consolidating financial information for guarantors
- Country code elements
- Common axis/domain used while reporting financials in US-GAAP.
The introduction of the SRT taxonomy eliminates the need for foreign private issuers (FPIs) using the IFRS taxonomy to import the US-GAAP Financial Reporting Taxonomy. This simplifies what would otherwise be a complex process.