Defining Issues   |   August 2017

 

SEC updates FAQs on IFRS Taxonomy

KPMG reports on the SEC’s recently updated FAQs on the IFRS taxonomy. The updated FAQs assist foreign private issuers in meeting XBRL reporting requirements, which begin for fiscal years ending on or after December 15, 2017.

Applicability

IFRS Taxonomy FAQs

SEC Release No. 33-10320; 34-80128

  • Foreign private issuers that file their financial statements with the SEC using IFRS as adopted by the IASB

Relevant dates

  • Foreign private issuers must begin to submit their financial statements in XBRL using the IFRS taxonomy with their first annual report on Form 20-F or Form 40-F for fiscal periods ending on or after December 15, 2017.  There is no phase-in based on issuer filer status.
  • Filing IFRS XBRL-formatted financial statements earlier than required is permitted.

Key impacts

  • Foreign private issuers will be required to file their annual financial statements in XBRL using the IFRS taxonomy in connection with their annual reports, which will provide investors and others access to their financial statements in a machine-readable format.
  • The SEC staff’s FAQs on the IFRS taxonomy include information to assist foreign private issuers in filing their XBRL-formatted financial statements, including listing sources for additional information and guidance; and it reminds foreign private issuers that their XBRL submissions will be publically available on EDGAR.
  • Additionally, the FAQs encourage foreign private issuers to reference the US GAAP taxonomy for tags when standard tags are not available in the IFRS taxonomy.

Report contents

  • The SEC published an IFRS-based XBRL taxonomy on its website so that foreign private issuers that prepare their financial statements in accordance with IFRS may begin to submit their financial statements in XBRL
  • Since 2009, filing financial statements in XBRL using an approved taxonomy has been mandatory for foreign private issuers who adopted IFRS. However, as no IFRS taxonomy was specified by the SEC, companies using IFRS have not been required to comply

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