Defining Issues | June 2018
 

SEC approves requirements to use Inline XBRL

KPMG reports that the SEC recently approved a requirement for public companies to embed XBRL into their financial statements instead of tagging the data in a separate file. The SEC also approved requiring funds to embed XBRL into risk/return summaries.

Applicability

SEC Press Release No. 2018-117

  • All SEC registrants

Relevant dates

For large accelerated filers that use US GAAP the phased transition period for fiscal periods ending on or after is June. 15. 2019.

For accelerated filers that use US GAAP the phased transition period for fiscal periods ending on or after is June. 15. 2020.

For all other filers the phased transition period for fiscal periods ending on or after is June. 15. 2021.

Public companies will be required to comply with their first Form 10-Q filed for a fiscal period on or after the applicable compliance date.

For large fund groups (assets of $1 billion or more) the phased transition period for funds for fiscal periods ending is 2 years after the effective date. 

For all other fund groups the phased transition period for funds for fiscal periods ending is 3 years after the effective date. 

Key impacts

The SEC approved the issuance of rule amendments that will require (1) public companies to use Inline XBRL in their quarterly and annual HTML financial reports, and (2) funds to use Inline XBRL for risk/return summaries.

The approved rule will:

  • Require public companies to embed XBRL data into their financial statements and funds to embed XBRL into their risk/return summaries
  • Require neither separate XBRL files nor public companies and funds to post XBRL data to their websites
  • Not change the scope of information that public companies must provide in XBRL, but it will accelerate the timing for funds to provide XBRL tagged risk/return summaries by eliminating the 15 business day filing period

Other information:

  • The SEC believes that Inline XBRL could improve the quality and accessibility of XBRL data and could potentially reduce the cost of preparing information for submission to the SEC
  • Public companies and funds should consider the effects that the revised rules might have on their financial statement and risk/reward preparation and review processes
  • Independent auditors are not responsible for the XBRL-formatted exhibit under existing and amended SEC requirements

Related content:

 

 

Subscribe to our newsletter

Receive timely updates on accounting and financial reporting topics from KPMG.

Featured topics


More topics