Question

1. What are some of the common problems users encounter when trying to compare financial statements of companies (even when they are in the same industry)? Describe how using XBRL could help alleviate these problems.

2. What are the current XBRL filing requirements for publicly-listed firms in the US?

3. Why should a business create XBRL-enabled financial reports?

4. Does the FDIC require banks to file any report(s) using XBRL? If so, which reports?

5. Do you have experience filing with XBRL? If so, please describe your experience in some appropriate level of detail for the class. If you have no XBRL experience, indicate in your posting No Experience.

6. Perform a general Internet search; what services are now available to assist companies in compiling with XBRL filing requirements. Briefly describe the provider(s) and the services offered by at least 2 providers.

Answer 1

Answer 1: The companies have different reporting structures and accountant labels. For example, two different even though they are in the same industry might record the same expense under different heads based on the nature of the expense they occurred and the reason they occurred the same for. Also, there might be some cases where companies even though they are working in the same industry have different revenue and cost operations.

XBRL helps in the standardization of the financial reports prepared by a business organization so that the investors and stakeholders can make ready comparisons between the companies. It provides a set structure to compare different companies in the same industry and companies among different industries.

Answer 2: XBRL filing requirements for publicly-listed firms in the US are as follows:

The SEC requires the filing of the Operating Company Financial Statement Information and Fund Risk/ Return Summary Information in the XBRL format. The SEC has given a three-phase compliance for companies following US GAAP starting from June 15, 2019, ending in 2021 and for IFRS it will be 2021 only for the Inline XBRL.

Answer 3: As described above, the XBRL helps companies to standardize their financial reporting structure. Also, increasing statutory requirement has also laid importance on the XBRL compliances as major reports are needed to be filed in the XBRL format. Therefore, the business should create an XBRL enable financial report.

Answer 4: Yes, the FDIC requires all the banks under its jurisdiction to file their quarterly reports of condition and Income in the XBRL format.

Answer 5: No Experience