It is important for all companies to make sure they are in compliance with SEC rules and regulations, and this includes iXBRL filings. Companies that are not in compliance with iXBRL filings run the risk of facing fines and sanctions from the SEC. What exactly are iXBRL filings, and when are they required? Take a look at a few important points below, and do not hesitate to reach out to us if you have questions or concerns.
iXBRL Filings Make It Easier To Track and Sort Data
The goal of iXBRL filings is to make sure that all forms and documents filed with the SEC are not only compatible with the system but also easy to categorize and organize. The data is designed to be interactive, making the database easy to compare, filter, sort, and search. Some of the main benefits of this filing system include:
- The information is much easier for investors to analyze, meaning they will have an easier time making educated decisions about how to invest their money.
- Financial analysts can immediately identify the information they need. They can take it, import it into financial models, and perform a quick and accurate analysis.
- Because there was one uniform system, it is possible for companies to automate the process, reducing the cost of filing and decreasing the chances of mistakes being made.
Companies need to make sure they have the right program in place to convert their files into the right format, and the team from Colonial Filings can help make the process easier.
When Are iXBRL Forms Mandatory?
There are several examples of forms that need to be filed in iXBRL. Some of the most common examples include:
- Any transition or periodic reports including Form 10-Q, Form 10-K, Form 20-F, or Form 40-F
- Form 485 BPOS
- Any restatements
- Every FOrm 8-K
- Any Securities Act registration statements
Of note, forms are typically required to be filed in ASCII or HTML format, not all forms are required to be filed in iXBRL format. Some companies may believe it is easier to file all of their forms in iXBRL format, but this is something that needs to be handled on a case-by-case basis.
Companies Must Stay in Compliance With All Rules and Regulations
In addition to filing forms in iXBRL format, different forms have different deadlines by which they need to be filed. The requirements can vary from form to form, which is why it is critical for organizations to work with a professional team that can help them stay in compliance. Filers are required to comply with all iXBRL requirements starting from their first Form 10-Q. All filers were required to start complying with iXBRL requirements from June 2021.
At Colonial Filings, we have the tools, training, and experience necessary to help you navigate the complicated web of SEC filing requirements, including iXBRL filings. We can help you save time and money by automating the process for you and reducing your chances of missing deadlines, which can help you avoid regulatory sanctions. Reach out to us today to learn more about how we can help you.
