As we near the close of Q1, the SEC-mandated XBRL reporting roll-out has impacted the final group of filers. Roughly 6,000 Tier 3 filers now have two XBRL reports under their belts, but with the looming challenge of detail tagging in the June 2012 quarter, questions are being raised of how to prepare XBRL efficiently and effectively going forward and how to tackle peek load balancing issues faced by outsourced XBRL service providers during the filings of 10-Qs and 10-Ks. Behar, a contributor to WebFilings discusses this in, “Streamlining the SEC Reporting Process: How Some Companies Are Making XBRL Compliance Look Easy.”
The Financial Executives Research Foundation (FERF) published a research report in December 2011, “SEC Reporting and the Impact of XBRL,” in which they surveyed 300 registrants regarding their experience with XBRL. The survey uncovered:
- XBRL had limited impact on registrants’ SEC filing dates
- XBRL was easier the second time around
- Registrants using built-in solutions were more satisfied with their processes than registrants outsourcing the process
- Built-in and in-house solutions continue to increase market share
“The vast majority of respondents to the FERF survey that used built–in solutions reported no pencils down period,” Behar writes. “Adoption rates of built–in solutions are expected to increase in 2012 as Tier 1 and 2 XBRL filers seek to gain greater control over the XBRL process and improve efficiency, and as Tier 3 filers prepare for detailed XBRL reporting." To learn more about how companies will handle the June 2012 quarter, read “Streamlining the SEC Reporting Process: How Some Companies Are Making XBRL Compliance Look Easy.” An abridged version of this article, written by Jerry Behar, a contributor to WebFilings, was featured in the February 2012 issue of Compliance Week.