On March 9, 2020, the SEC announced that the EDGAR system has been upgraded to support the 2020 U.S. GAAP, 2020 SEC Reporting (SRT), and a few other SEC taxonomies. The US regulatory authority also announced that the EDGAR system will no longer support the 2013 and 2012 INVEST taxonomies as part of these recent changes. Currently, the system still accepts filings as per the 2018 version of the taxonomy, but that’s going to change from June 2020, this taxonomy is removed. So it’s advisable to familiarize yourself with the new updates and prepare your own 10Ks and 10Qs accordingly.
What’s new
The 2020 U.S. GAAP Taxonomy predominantly focuses on improving the utility of the 2019 taxonomy. While the 2019 taxonomy addressed the requirement for ASUs and common reporting practices, the 2020 taxonomy works out the kinks present in its predecessor with modifications and improves the reporting process. The appendixes below depict the number of elements that have been altered as part of these modifications. You can download the detailed version in excel format here.
A separate file listing out changes in the SRT which include the addition of 8 new elements, modification of 3 preexisting elements, and improvements to 4 documentation labels have been added to the taxonomy. You can download the detailed excel format here. Besides, these modifications, you will also find new elements and deprecations from the remodeling of certain topical areas as part of improvements in the 2020 taxonomy.
Taxonomy Improvements
DQCRT Taxonomy
The XBRL US DQC Rules Taxonomy (DQCRT) has been published with the UGT 2020. The DQCRs are XBRL US-published validation rules for XBRL filings with the SEC. This taxonomy includes the DQCRs in a derivative form that identifies the concepts that the rules apply to, with the necessary information for software and human readers to understand each rule and the elements to which it applies.
Keep in mind that the DQCRT does not include application logic that would support the rule being run directly from the DQCRT. Users will need to apply their own application layer or use the rule application as provided by XBRL US.
Variable Interest Entities and equity method investments
The Taxonomy topical project on Variable Interest Entities (VIEs) and equity method investments address inconsistencies in the modeling and tagging of the data within disclosures. Three new axes have been introduced as additional dimensions for variable interest entities disclosures. These dimensions will allow the use of existing line item elements to report information that is part of the consolidated values and information that is not part of the consolidated values. They include “Investments by Consolidated and Nonconsolidated Entities [Axis],” “Pledged Status [Axis],” and “Recourse Status [Axis]” as part of this remodeling.
ASU transition modeling
Each ASU improvement is always released for public review and comments. Only after a thorough process and analysis with every possible consideration does the FASB implement improvements that are derived from the ASU. For example, as part of this remodeling process, the new axis “Cumulative Effect, Period of Adoption [Axis]” has been introduced in the 2020 SRT. The Restatement [Axis] will now be called the Revision of Prior Period [Axis], and new members have been added.(change in accounting principle, error correction, accounting standards update, and reclassification)
Modifications of labels for maturity schedule elements
To address the confusion in consumption of the data caused by the diversity in tagging of interim information for maturity schedule elements, the labels (both standard and documentation) for fiscal maturity schedule elements have been updated as needed to clarify intended use to improve consistency in tagging that information.
Retirement benefits—multiemployer plans
The Taxonomy topical project (currently in its third phase), on retirement benefits, will focus on multiemployer plans and continue to reduce inconsistencies and redundancies. This step has been taken with the intent to improve the quality of the data. One of the ways this is being done is by modeling the character of significant or insignificant multiemployer plans in the line item element.
We encourage all filers to implement these new updates introduced by the FASB and SEC. If you find yourself facing difficulties with understanding the 2020 UGT, consult an iXBRL service provider that you trust. If you don’t have one yet, don’t hesitate to reach out to us. You can access our experts with a simple click.
We hope to be able to support you with your XBRL/iXBRL and other compliance filings, in any way you want. So if you’re looking for an efficient and sustainable solution to streamline the last mile of your reporting process or an iXBRL solution that will ease your compliance process, we’re here to help.
