How Does the EDGAR System Update Affect You?
The SEC announced in early April a forthcoming release of the EDGAR system update (13.1). The update is currently scheduled to take effect on May 20, 2013, a revised date from the April 29, 2013 date previously announced. With this update, a couple of major changes related to XBRL are expected, including: 1.) revision v.23 of the EDGAR Filer Manual (EFM) Volume II; and 2.) the adoption of the 2013 US GAAP Taxonomy, while discontinuing the 2011 US GAAP Taxonomy.
The main changes to the EFM include the relaxation of a name attribute convention called LC3. LC3 stands for Label Camel Case Concatenation, and is a set of guidelines surrounding the format of the extension name. After the EFM Volume II v.23 draft goes into effect, certain existing rules will remain while others will no longer be required. The allowance of special characters like % and starting attributes with numbers, for example, could be especially beneficial in naming certain extensions, such as debt instrument members. Below, you can see the highlights for the main updates.
On the new taxonomy front, many changes are expected based on GAAP and Codification updates, as well as modeling changes to existing disclosures. The key changes are highlighted below by the type of changes to the elements and the nature of the changes.
Type of changes to elements
Nature of the main changes
As you can see, the new 2013 taxonomy is full of complex changes. To facilitate the transition the FASB offers new implementation guides on Other Comprehensive Income, Insurance Industry (Concentration of Credit Risk and Reinsurance—Related Disclosures), and Segment Reporting. To ensure proper migration, filers should plan on a thorough review of their prior mapping against the new taxonomy. The SEC's increased focus on quality also makes this a good time to invest in a full review of your XBRL. WebFilings hosts regular webinars and learning opportunities to help you stay on top of the latest industry mandates. To view the archive, click here.