In a 4-1 vote on June 28, 2018, the Securities and Exchange Commission (SEC) voted to adopt several amendments to the existing XBRL reporting requirements. Instead of the existing requirements which mandate that companies submit XBRL exhibits along with their HTML filings for quarterly and annual financial statements, companies can now submit Inline XBRL filings.
Instead of a dual filing system with both human and machine-readable filings, companies are now able to file a more convenient Inline XBRL document. The Commission believes that this decision will make the filing process more modern and timelier.
Commissioner Michael S. Piwowar remarked that “In my view, today’s rulemaking will not add appreciably to the compliance burdens of our registrants…This is an encouraging trend, and I expect compliance costs to decline further as a result of today’s elimination of the requirement that operating companies and funds post Interactive Data Files to their public websites.”
The rules will be implemented in a phased-out cycle:
- Large and accelerated filers must comply starting with any fiscal periods that end either or after June 15, 2019
- Accelerated filers must comply starting with any fiscal periods that end either or after June 15, 2020
- Any other filers must comply starting with any fiscal periods that end either or after June 15, 2021
Funds will also have phased-out cycles for implementation:
- Large fund groups (net assets of $1 billion or more) must comply two years after the amendments become effective
- All other funds must comply three years after the amendments become effective
In order to make data more quickly available to the public, the 15-day grace period in XBRL will also be eliminated.
These amendments should benefit the SEC, issuers, investors, and other market participants alike. Not only will these updated requirements make the data itself more useful, it will also decrease costs and the time spent to file reports.