XBRL 2018 Reporting Update: Everything You Need to Know

• 2018 US GAAP Taxonomy
• New Accounting Standard ASC 606 for Revenue Recognition
• IFRS Reporting
• Data Quality Checks
• Inline XBRL

Key Takeaways:

The new SEC Reporting Taxonomy (SRT) will drive higher level of re-tagging

If you are upgrading to the 2018 US GAAP Financial Reporting Taxonomy this year, you will need to do more retagging to update elements moved to the SRT. Here’s what you need to know:

• In an effort to support IFRS filers now required to file XBRL, the FASB split the existing US GAAP Taxonomy into two components.
• The new SRT includes elements to meet SEC reporting requirements for financial schedules required by the SEC, condensed consolidating financial information for guarantors, and disclosures about oil and gas producing activities.
• Both IFRS and US GAAP filers will use the new SRT.
• XBRL US and the Data Quality Committee (DQC) updated their rules to support the 2018 taxonomy. The DQC has provided useful guidance related to areas where they are seeing the most problems, including non-negative values, cash flow calculations and disclosures, relationships between elements, and dimensional equivalence. 

How ASC 606 for Revenue Recognition will impact your XBRL filing

One essential element that has changed is the revenue subject to the new accounting guidance will no longer be tagged with individual line-item elements. These amounts will now be tagged dimensionally with members based on the way in which each filer disaggregates revenues. This means that you will need to re-tag the income statement and related balance sheet accounts. If you are adopting the new accounting standard using the modified retrospective method and are not restating prior reporting periods, you should still tag values for prior periods with the same element as the current year and not use two different elements.

New requirement to disclose remaining performance obligations under ASC 606

The FASB has introduced a new type of dimension called a typed dimension. You will need to tag values for remaining performance obligations using a typed dimension for the start date of each remaining performance period. You will also need to indicate the time duration for each of these performance periods. If you report a period called thereafter, you will need to tag the duration for this performance time period with a nil value. When creating your XBRL filing, do not use elements located in Section 440000 within the US GAAP taxonomy if you are using elements from Section 606000. There will be new DQC rules to check for this in filings.

SEC requires that IFRS filers now report in XBRL

Under the original rules from the SEC, IFRS filers were required to submit XBRL files. However, they were given an exemption until the SEC approved an IFRS Taxonomy. The SEC approved the IFRS Taxonomy in March 2017 for fiscal years after December 31, 2017. In the first quarter of 2018, IFRS filers began reporting to the SEC. Over 250 filings have been made so far this year that provide a good amount of data to analyze for trends. XBRL US has made DQC rules available for IFRS filings. There were many basic errors occurring in IFRS filings and filers should run the DQC rules that are available. XBRL US will continue to update these rules to improve the quality of XBRL data.

What’s the latest on Inline XBRL?

Inline XBRL is a format that allows filers to embed XBRL data directly into an HTML format. The idea behind this is to make it easier for investors and others to consume the data and increase the use of XBRL. To date, over 400 filings have been made in inline XBRL as part of the SEC’s voluntary program. We anticipate the SEC will mandate it in the next 12 months.

Inline XBRL is not a one-off thing that is only affecting the United States. The European Securities and Markets Authority (ESMA), the securities regulator in Europe, has indicated that they will also move to adopt inline XBRL by 2020. It is the way the industry is moving.

View the webinar to understand these changes and how to make the necessary updates.