Second Phase for SEC iXBRL Reporting begins
The US Securities and Exchange Commission (SEC) recently stepped up its phased approach to introducing Inline XBRL (iXBRL) tagging requirements.
This June marked the start of the fiscal period in which Accelerated Filers must join Large Accelerated Filers (who have been reporting in iXBRL since 2019) and begin tagging their financial reports and cover pages using Inline XBRL.
The SEC has staggered the introduction of iXBRL reporting by filer size and revenue in order to reduce the reporting burden on smaller companies. This year the SEC also made amendments to filing category definitions, allowing some companies to transition to a smaller status with fewer reporting requirements.
Staggering the introduction of new regulations helps reduce the cost of reporting as available reporting solutions become more widespread and affordable over time. In Europe, the ESEF mandate is also being phased in gradually, although rather than by size the EU has chosen to gradually increase the level of tagging required across the entire reporting population. {Ed – Our friends in the academic community might like to look at the comparative competition policy and resource constraint questions posed by these different approaches.}
Read more about the SEC’s requirements here.
