The SEC Advisory Committee on Improvement to Financial Reporting (CIFiR), in a Draft Decision Memo and at its January 11th meeting, recommended the SEC transition to mandatory XBRL for all companies. CIFiR recommended the SEC phase-in XBRL as follows:
- The largest 500 domestic public reporting companies should be required to “furnish” XBRL tagged face financial statements and “block tagged” footnotes;
- One year later, all domestic “large accelerated filers” (~2,000 Companies) should be required to “furnish” XBRL tagged face financial statements and “block tagged” footnotes to the SEC.
- During the phase-in period, the SEC and the Public Company Accounting Oversight Board (PCAOB) should seek input from companies, investors, and other market participants as to the experience of such persons in preparing and using XBRL tagged financial statements using the U.S. GAAP taxonomies, and related costs. The SEC should consider conducting or commissioning a study of the rate of errors by companies in using the appropriate XBRL tags in comparison to the financial statement items. At the end of the phase-in period described above, and as promptly as practicable after the preconditions to full implementation discussed above are met, the SEC should evaluate the results from the phase-in period to determine whether and when to move from furnishing to official filing of XBRL tagged financial statements for domestic large accelerated filers, as well as the inclusion of all other reporting companies.