Question

Is a company liable to investors or other users of accounting information if they report inaccurate XBRL data? Please explain.

Answer 1

Yes, company liable to investors or other users of accounting information in case they report inaccurate XBRL data. On January 30, 2009, the Commission issued rules requiring companies to provide in the XBRL interactive data format their financial statement information. As per rules the filings were subject to limited liability within 24 months of the time the filer first is needed to submit interactive data files. However on October 31, 2014 the limited liability provision were terminates entirely. During the 24 months they will follow rule 406T which will be subject to the federal securities laws in a modified approach under new Rule 406T in case the filer submits the interactive data file within 2 years of the time the filer first is needed to submit interactive data files however no later than October 31, 2014. Rule 406T states that during the time a filer’s interactive data files are treated in this modified approach, and thereafter companies are subject to federal securities laws