The Financial Accounting Foundation (FAF) and the Financial Accounting Standards Board (FASB) are in charge of the development of the U.S. GAAP Financial Reporting (Taxonomy). As a part of the continuous development and maintenance of taxonomy, the FAF and FASB every year update the SEC taxonomy. In this regard, the SEC has released the mandatory yearly upgrade to its Taxonomy containing instructions and XBRL reporting requirements on how to accurately prepare and submit filings with it. The SEC yearly revises the SEC Taxonomy to reflect the new electronic filing requirements that filers then have to comply with.
On March 12th, 2019, the Financial Accounting Standards Board (FASB) announced that the U.S. Securities and Exchange Commission (SEC) has accepted the 2019 GAAP Financial Reporting Taxonomy. A major part of this release has been focused on improving the quality of XBRL that the SEC has been receiving.
The 2019 GAAP Financial Reporting Taxonomy includes updates for accounting standards and other recommended improvements. This year, some elements from the 2018 GAAP Financial Reporting Taxonomy have been moved over to the 2019 SEC Taxonomy, or SRT. The latest taxonomies and related release notes can be found on the FASB’s XBRL pages and the links for the 2019 GAAP Financial Reporting Taxonomy and 2019 SRT. SEC guidance is available on the SEC’s XBRL portal.
The SEC’s focus is on Quality Data
With the introduction of the above upgrade changes, the SEC is moving towards improving the quality of filings that it is receiving every quarter. In the future, we expect the SEC to introduce more upgrade rules in line with the US-GAAP accounting standard. We will shortly be writing about
We encourage all Companies to be in line with the new updates introduced both by the SEC and the FASB.
The Customer Success team of IRIS CARBON® encourages companies to be on the latest version of the SEC taxonomy and proactively reaches out to clients to let them know that there is a new taxonomy version released and suggest they move to the latest taxonomy. As a part of our offering, we provide an automatic version transition activity every year so that our clients can spend time on other important areas which need more focus and attention.