August 1, 2008
We know there has been much discussion in the past day with regards to the SEC’s statement on websites and disclosure. Our press release issued today indicates that before we can issue a detailed response, we are waiting until the SEC’s interpretive guidance is issued.
However, we continue to maintain that simply posting material news on a corporate web site or using blogs does not meet the spirit and intent of Regulation FD because it is neither simultaneous, nor full and fair. It is Business Wire’s belief that this is not what the SEC intended.
As we have stated in the past, the use of web sites as an ancillary means of news dissemination is, in our view, a best practice. However, web posting or blogs alone are not a substitute for secure and simultaneous push delivery of material news to the disclosure media, financial markets, online web portals, aggregators, and the global investing public. Neither does it accomplish the requirements of the major stock exchanges.
February 11, 2008
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.