The Financial Accounting Standards Board said Tuesday the Securities and Exchange Commission has accepted the latest updates to the GAAP Taxonomy for filing financial statements with the SEC.
Both the
The SEC began mandating that companies use XBRL to file their financials over a decade ago with the goal of making it easier for investors and analysts to compare information across companies and industries. Every year, ever since FASB took over management of the GAAP Taxonomy from an industry consortium, it submits the latest updates to the SEC for approval.
Along with the GAAP Taxonomy, the 2021 DQCRT has now been finalized. It differs from some of the other XBRL taxonomies as it’s narrowly focused on conveying the XBRL US Data Quality Committee’s (DQC) validation rules, especially for regulator use. One of the problems that has hampered adoption of XBRL is the issue of data quality and XBRL US, the industry consortium that has been involved with the GAAP Taxonomy since its inception, has been working on making the data more consistent and accurate. However, the DQRT isn’t intended to be used in SEC filers’ extension taxonomies the way the GAAP Taxonomy or the SEC’s Document and Entity Information Taxonomy (DEI) are used. The DQCRT contains just a subset of the DQC rules. FASB’s taxonomy staff evaluate the validation rules for inclusion in the DQCRT that have been available for use for more than a year to see how the DQC dealt with any feedback received on a validation rule.
All the different FASB Taxonomies and their related release notes can be found on FASB’s Taxonomy pages and through the following links:
Questions about using the FASB Taxonomies and creating and submitting XBRL- tagged interactive data files in compliance with SEC rules should be directed to the SEC. SEC contact details and guidance are available at the
The SEC said that on Monday, its financial filing system, the Electronic Data Gathering, Analysis, and Retrieval system, known as EDGAR, has been upgraded and now supports the 2021 taxonomies. The 2021 U.S. GAAP Taxonomy and the 2021 SEC Reporting Taxonomy reflect the same taxonomies that FASB made available on its
- U.S. GAAP SEC Reporting (SRT)
- Countries (COUNTRY)
- Currencies (CURRENCY)
- Document and Entity (DEI)
- Exchanges (EXCH)
- North American Industry Classification System (NAICS)
- Risk-Return (RR)Standard Industrial Classification (SIC)
- State and Province (STPR)
The SEC staff doesn’t anticipate the removal of the 2019 U.S. GAAP, 2019 SRT, or any previous year versions of the other taxonomies to occur before June 2021, but they are strongly encouraging companies to use the most recent version of taxonomy releases for their XBRL exhibits to take advantage of the most up-to-date tags related to new accounting standards and other improvements. “Filers should consider transitioning to the 2021 taxonomies for the earliest reporting period that ends after March 22, 2021, but not for reporting periods that end before March 22, 2021,” said the SEC.
See
For more information about the FASB Taxonomies, FASB will be hosting a free live CPE
