Category Archives: XBRL

Vintage’s New XBRL Online Review (XOR) portal addresses SEC’s “Dear CFO” letter

The U.S. Securities and Exchange Commission (SEC) disclosed that they have begun sending formal alerts to issuers regarding the inclusion of accurate calculation relationships in their filing. This is an important – and visible – step towards quality enforcement.

XOR_XBRL_online_clipart250To help mitigate clients’ risk while improving their XBRL filing workflow experience, we are transitioning  - free of charge - our XBRL reviewing process into the new XBRL Online Review (XOR) portal.

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An important point to note is that XOR brings online review and collaborative commenting to our fleXBRL Core clients. (Click here to match up your XBRL workflow)  Our fleXBRL Command and Control (both SaaS portal-based) clients’ workflow is currently review, comment and self-edit.

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Without XOR: When your XBRL is viewed with the SEC’s viewer, or on a standard spreadsheet review, calculations are not visible.

With XOR: All calculations that have been made within an XBRL file are easily visible for review. You will see not only where calculations have been made, but what the components of those calculations are and whether the calculations foot properly.

XOR has been in trial with a select set of clients for one quarter. Thanks to their input and success, we are now able bring all Vintage fleXBRL clients into this easy-to use portal. Please click here to read an overview.

Including XOR at no additional cost is another demonstration why Vintage continues to be the industry’s intelligent value for capital markets and corporate services.

Another quality issue the SEC is now proactively flagging is the the practice of using custom taxonomies rather than an established taxonomies. True, the X in XBRL stands for extensible, however if there is an established, appropriate taxonomy, it’s key to use it. Remember, the only way you will get ROI from your XBRL efforts is to make the data usable (comparable) for investors. Using the “common ground” tags is the only way that will happen.

Your Vintage XBRL specialist can help you with this important action.  That’s even more intelligent value. 

Have a great day.

Should auld (GAAP) taxonomies be forgot, and never brought to file…

It’s a new year for XBRL filers! As of now, all corporate issuers should be on either the US GAAP 2014 or 2013 taxonomies. The 2012 taxonomies are retired – the SEC’s two-year acceptance window has officially expired. Certainly, all Vintage clients are already up-to-date.

sec_2014_tax

The new GAAP taxonomies affect the following SEC corporate form types:

Filing Program Att. Type EDGAR Forms
Interactive Data EX-101 10-K, 10-K/A,10-KT, 10-KT/A,10-Q, 10-Q/A, 10-QT, 10-12B, 10-QT/A, 10-12B/A, 10-12G, 10-12G/A, 8-K, 8-K/A, 8-K12B, 8-K12B/A, 8-K12G3, 8-K12G3/A, 8-K15D5, 8-K15D5/A, 20-F, 20-F/A, 20FR12B, 20FR12B/A, 20FR12G, 20FR12G/A, 40-F, 40-F/A, 40FR12B, 40FR12B/A, 40FR12G, 40FR12G/A, 6-K,6-K/A, SP 15D2 ,SP 15D2/A, S-1,S-1/A, S-1MEF, S-3, S-3/A,S-3ASR, S-3D, S-3DPOS, S-3MEF, S-4, S-4/A, S-4EF, S-4MEF, S-4 POS, S-11, S-11/A, S-11MEF, POS AM, POS EX, POSASR, F-1, F-1/A, F-1MEF, F-3,F-3/A, F-3ASR,F-3D, F-3DPOS,F-3MEF, F-4,F-4/A, F-4EF, F-4MEF, F-4 POS,F-10, F-10/A, F-10EF, F-10POS

If you are having ANY difficulties with your taxonomies, PLEASE reach out to us. This is especially important for corporate issuers who feel they have been left at the XBRL Support Alter i.e. “DIY” SaaS XBRL portals that charge extra for support. Download the SaaS portal checklist here. 

We don’t charge extra. It’s part of delivering intelligent value.

Have a great day.

Vintage’s Evan Scharf Joins XBRL Dignitaries at White House Briefing

Last week, members of the Data Transparency Coalition had the honor of meeting (in the White House!) with the US Chief Technology Officer, Todd Park, to share their knowledge about XBRL and its upcoming role in the DATA Act.

Evan Scharf, Vice President of XBRL Services (far left) visits the West Wing with The Data Transparency Coalition members.

Evan Scharf, Vice President of XBRL Services (far left) visits the West Wing
with The Data Transparency Coalition members.

The DATA Act is the nation’s first legislative regulation for data transparency, mandating the uniform “tagging” of federal spending thus requiring the Department of the Treasury and the White House Office of Management and Budget to transform spending from disconnected documents into open, standardized data and to publish that data online.

Sound familiar? ( The answer is yes, it’s XBRL)

The group of XBRL industry leaders were invited to roundtable their expertise and insights on the implementation of accounting standards. Those of us working the corporate side of XBRL are keenly aware that success depends on focusing on what matters: the push for XBRL qualityCertainly, the DATA Act cements the overall (and continuing) economic drive for accounting standards and transparency.

At the meeting, key milestones were discussed to develop a blueprint that will establish common definitions of data elements that support reporting by governmental agencies plus provide foundation for the data’s taxonomy:

  • Establish Data Standards (data exchange) Team
  • Kick‐off planning meeting w/ contractor (detailed project plan, scope, and methodology)
  • Identify up to three pilot agencies (intelligent data)
  • Conduct pilot w/ Fiscal Service bureau‐level data to demonstrate data linkages & visualizations
  • Classify data elements and identify master data elements
  • Develop and map United States Standard General Ledger(USSGL) taxonomy and financial reporting taxonomy using XBRL
  • Consult with Industry
  • Develop reporting templates including business rules and validation templates
  • Complete agency pilots
  • Document and present the prototype pilot
  • Issue data exchange standards
  • Issue on standards (definitions) on Federal Funding Accountability and Transparency Act (FFATA) data elements
  • Establish concept of operations for data standards governance framework
  • Develop detailed agency roll‐out plan

Many thanks to The Data Transparency Coalition for Vintage’s presence in this important bipartisan path.

Have a great day.

Adaptive Insights partners with Vintage Filings to bring cloud agility to XBRL reporting

New OfficeConnect Reporting Product and Partnership Help Companies Automate Financial and Management Reporting and Cut Complexity versus Legacy CPM Solutions

SAN FRANCISCO – May 20, 2014 – – Adaptive Insights, the worldwide leader in cloud business analytics solutions for companies and nonprofits of all sizes, today announced at its Adaptive Live 2014 user conference new products and partnerships that reinvigorate reporting processes from financial and board reporting to disclosure management. By combining reporting power traditionally only available to the world’s largest enterprises with the incredible ease of use and delivery of Adaptive’s cloud, organizations can transform their reporting processes with unprecedented speed, efficiency and flexibility.

adaptive_insights_logoAdaptive OfficeConnect, part of the Adaptive Suite, is a robust new reporting product that injects new power into Excel, Word, and PowerPoint with dynamic, always up-to-date data from the Adaptive cloud — accelerating reporting cycles and eliminating cost and risk.

Additionally, a new partnership with regulatory compliance leader Vintage Filings, a division of PR Newswire, provides complete disclosure management – from XBRL tagging and filing, to EDGAR HTML submissions – enables the world’s largest public enterprises to close with Adaptive and disclose with one of the world’s most trusted financial printers.

Traditional reporting processes are often mired with extremely high costs, risk of error, and time-intensive tasks. Organizations with one billion in revenue can spend more than half a million dollars in reporting (Source: APQC) and allocate ten or more full-time employees for financial reporting alone (Source: Aberdeen Research). Organizations looking to drive enterprise-class reporting processes have often been required to spend millions on costly, inflexible and hard to maintain legacy CPM solutions. For public companies needing to submit their financial reports to regulatory agencies, the process can be tedious, taking days to aggregate multiple spreadsheets from across the business, manually tag and update values across all filing documents, and validate that data is from the same version of the truth.

Adaptive OfficeConnect brings the power and efficiency of the Adaptive cloud to Microsoft Office, saving organizations time and money by transforming static Excel, PowerPoint, and Word reports into live, dynamic and connected reports in minutes. Organizations now get the best of both worlds – enterprise-class financial and board reporting, with data sourced from Adaptive’s easy to deploy and use cloud CPM suite.

“Adaptive OfficeConnect is a game-changer. We can transform all of our existing Excel reports and connect them to Adaptive, combining the distinctive power of Adaptive and Excel,” said Paulo Castro, Manager of Accounting, Embraer Defense and Security, Inc.

Adaptive’s new partnership with industry leading printer Vintage Filings empowers organizations to leverage Adaptive OfficeConnect reports throughout the disclosure process and beyond the walls of the enterprise.

Liam Power, President of Vintage Filings, commented,

“We are excited to be partnering with the #1 cloud CPM and BI suite to provide complete disclosure management. Thousands of public companies trust us with their regulatory submissions, and we look forward to bringing our deep expertise to Adaptive’s customers to streamline their filing processes.”

Now the Adaptive cloud can extend throughout the complete financial reporting lifecyle for the world’s largest public companies with Vintage’s superior service.

Highlights include:

  • Beautiful Reports Built On-the-Fly: Adaptive OfficeConnect easily and quickly creates presentation-quality reports based on up-to-date data from Adaptive’s cloud CPM, creating engaging board books, financial reports, management reports and more. Adaptive OfficeConnect embraces the complete control of Microsoft Office formatting, calculations and charting, eliminating the ongoing costly and complex maintenance with live, accurate data.
  • One-Click Intelligent and Dynamic Reports: Only Adaptive OfficeConnect enables business users to transform their existing static Excel reports into live, connected dynamic Excel reports, in just minutes. Adaptive OfficeConnect’s intelligent linking ensures that data is accurate and always up-to-date, eliminating errors and time traditionally spent copying, pasting and reformatting. Reports are refreshed with a simple click—delivering yet another boost in productivity.
  • Comprehensive Support for Microsoft Excel, Word, and PowerPoint: Adaptive OfficeConnect seamlessly weaves report information into Excel, Word and PowerPoint for board books and executive presentations. Infused with the same dynamic connection to data in Adaptive Planning and Consolidation, updates are seamlessly incorporated throughout all documents with a simple refresh.
  • Unified Close to Disclose Reporting: Adaptive OfficeConnect extends dynamic and connected reporting beyond the enterprise, enabling organizations to file their public financials in Microsoft Word with simplicity and ease, all with full support from industry filing and printing organizations.

Adaptive OfficeConnect builds on Adaptive Suite’s leading cloud CPM solution that is powerful, yet incredibly easy to deploy and run. “Increasingly, enterprises are on the march from expensive legacy CPM solutions, and are looking to transform the speed and flexibility of their aging planning processes with the agility of the cloud. With OfficeConnect, it’s easier than ever for them to make the move, and migrate their existing reports and processes to Adaptive,” said Connie DeWitt, Vice President of Product Management at Adaptive Insights. “These new innovations enable enterprises to accelerate their reporting processes by 70 percent, while tapping the Adaptive cloud to slash costs by 95+ percent versus traditional solutions. Enterprises can realize time and money savings to accelerate growth and drive success.”

Adaptive’s powerful global partner ecosystem is equally excited about Adaptive OfficeConnect.

“Adaptive makes an ideal partner because the company is so in tune with customer and partner needs and delivers innovations based upon them,” said Brian Storrs, founder and president, IntuitiveTek. “Each new feature and product added to the Adaptive Suite enables us to meet the most demanding enterprise needs, and enables us to take legacy and unmanaged spreadsheet-driven processes to the cloud with ease.”

A bridge not far enough: XBRL SaaS without sufficient training

VF_crossfire_header

 

Moving your XBRL workflow into a SaaS portal process is a viable path for many companies, but there are operational risks to “do-it-yourself.”

1.) Inadequate or lack of deep Bootcamp-style training

2.) Inflexible on-demand “hand-holding” support

3.) Inexperienced front-line staff expertise

Switching to XBRL SaaS: deep training is essential. Before you switch, download the Crossfire comparison checklist HERE.

To help you understand mitigation of these risks – we invite you (here) to a brief walk-through of Crossfire. As you may know, Crossfire is the underlying SaaS built by Rivet.

Vintage Filings is the #1 reseller of this popular XBRL portal – and the sure path to an operational XBRL success through proper training. Is a portal the smartest path for you? Tell us your workflow and we can help you decide.

Have a great day.

More proof XBRL is a universal language

Beyond the Senate’s recent bipartisan passing of the Digital Accountability and Transparency Act (DATA) of 2014, Vintage Filings’ SVP Liam Power and VP Trevor Loe are living proof that XBRL is THE global language for financial reporting.

PRNAsia

Vintage Filings met and presented to a captive audience of Chinese-based US-issuers in Beijing this week.

These ethically minded Chinese companies are working very hard to counter balance the tainted brush from the “mini-crisis” we experienced a couple years ago from the herd of Chinese reverse shells.

The audience was very interested in the advances we have made with our XBRL solutions. A more interesting observation was their companies’ reporting teams passion for XBRL  – the CEOs and CFOs instantly grasped the importance of a “common language” needed for both regulatory oversight and investor transparency.

This drive for a global financial language demonstrated by these Chinese corporations is an ironic juxtaposition to the backward movement being lobbied here in the US. Read this Fortune magazine article for a concise overview.

Have a great day.

XBRL tagging advice from an alpaca?

AIPCAOne of the biggest frustrations – and errors – is around the labeling and tagging of negative values. To that, our XBRL team is always looking for the best insight and advice for clients.

Our lead XBRL CPA strongly suggests that all preparers read this whitepaper. Although it’s inexplicably written by an alpaca, it’s the clearest guide he has ever come across.

To quote the alpaca:

“One of the most common XBRL errors cited by the Securities and Exchange Commission (SEC) continues to be incorrect sign values on tagged amounts in the XBRL files (that is, an incorrect number is input because a negative should have been input as a positive or vice versa). This may have significant implications for users of XBRL-formatted financial statements because this error may cause inaccurate analyses (for example, calculation of incorrect ratios or misinterpretations of gains and losses). Errors in the XBRL files also have implications for the filer.

Not only is a company’s reputation at risk if it includes incorrect information in its XBRL files, but most companies’ XBRL files are subject to the same legal liability as the filed financial statements.”

Getting these values correctly labeled is a simple, yet core quality issue – and we are all keenly aware of the heightened importance of XBRL quality.

As an ongoing demonstration of our dedication to the quality of our clients’ XBRL, our fleXBRL SaaS portal solution (Crossfire) clients all receive a deep, comprehensive training program with 1.) in-person XBRL executive Bootcamps,  2.) module-based online training and our 3.) exclusive double team support. There’s no gap to be bridged between self-service and full-service: our XBRL team correctly labels it as “client service.”

Again, the importance of correctly labeling your positive and negative values cannot be understated. Download the 11 page guide here.

OoooOOOOoooh. AIPCA. Boy, that goes to prove the importance of proper labels!

Have a great weekend.

The Senate takes a dedicated step towards transparency (coughcoughXBRLcough)

Yesterday afternoon, the Senate passed S.994, the Digital Accountability and Transparency Act (DATA) of 2014. This is a bill to expand the Federal Funding Accountability and Transparency Act of 2006, increasing the accountability and transparency in Federal spending.

You can read the bill here: http://thomas.loc.gov/cgi-bin/bdquery/z?d113:SN00994:@@@L&summ2=m&

From the bill:

…include data reporting standards that…

(I) incorporate a widely accepted, nonproprietary, searchable, platform-independent computer-readable format;

(II) be consistent with and implement applicable accounting principles;

(III) be capable of being continually upgraded as necessary;

(IV) are structured to specifically support the reporting of financial and performance-related data, such as that any data produced, regardless of reporting need or software used for creation or consumption, is consistent and comparable across reporting situations;

(V) establish, for each data point, a standard method of conveying the reporting period, reporting entity, unit of measure, and other associated attributes; and

(VI) incorporate nonproprietary standards in effect on the date of enactment of the Digital Accountability and Transparency Act of 2013.

Why we care about the DATA Act:

Even though it is not identified, we’re talking about XBRL. The bit about “computer-readable format” was the clue. What’s important to take away (and appreciate) is that XBRL is not a proprietary reporting process created by the SEC to torture us all in the capital markets. It’s a universal electronic language for ALL financial information. XBRL is also – and this is very core – a culture of accounting accountability.

DataTNGIn an odd juxtaposition, the passing of the DATA Act is the Ying to the Yang of another bill: the Small Company Disclosure Simplification Act, a bill that lobbies for more than half of the companies on US exchanges to stop filing in XBRL. (aka: to revert back to manual spreadsheets and PDFs)

Granted, XBRL has not been the smoothest nor simplest SEC regulation to follow. Nor is it free. XBRL US, the consortium whose charge is to support the implementation of XBRL, puts fees at $2,000 to $25,000 per year depending on the commercial solution and the complexity of the financials. Our fees are on the low-end of that spectrum – thanks to our fleXBRL program.

The new discussions, in light of the DATA Act passing, are what will the new bill do on The Hill? Does accounting accountability play favorites? Does this mean investors should mistrust large companies more than small? Can the capital markets really be just “half compliant” in regard to equity financial fundamentals data?

Regardless if the bill passes or dies on The Hill, we urge emerging growth companies to shop better. XBRL should not be a fiscal concern. We help hundreds of companies throughout their IPO process and into the post-IPO life. We understand that being transparent and compliant are the costs of going public… and we “sell” services that can easily (and fairly) work for all companies, small or otherwise. Size doesn’t matter.

Have a great day.

New report: The cost of regulation not the “success barrier” for small company IPOs

DISCLOSURE: The issue of “ROI of regulation” has been elevated once again, specifically in context to XBRL being viewed as a fiscal barrier for reporting-micro and smallcap companies. If you follow this blog or have spoken with our executives, you’re familiar with our proactive stance on reducing the cost of XBRL compliance… and “spending more” on initiatives that spur growth: aka marketing and shareholder communications. We promote a balanced approach to corporate transparency.

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DAVIDOFFA fascinating report was posted on the Harvard Law School Forum of Corporate Governance  and Financial Regulation blog (3/10/2014) by Steven M. Davidoff, Professor of Law and Finance at Ohio State University College of Law – soon to be Professor of Law at the University of California, Berkeley School of Law.

As the title states, Disappearing Small IPO and Lifecycle of Small Firm, analyzed the maturation of smallcap companies – and the cause for few and fewer smaller companies going (and successfully staying) publicly listed.

From the report: 

Our findings do not support the regulatory explanation for that dearth [ of small IPOs ] but instead we theorize that the evidence supports to a decline in investor demand. Namely, these small IPOs have simply not performed well. They delist at high rates and remain small when listed. This evidence points against legislation such as the JOBS Act or other regulatory tinkering having any material effect on the lifecycle of IPOs or the IPO market itself.

Instead, our conclusions support a counter-narrative that the small IPO drought is simply due to market judgments and changes in the market ecosystem. Investors appear to no longer want to invest in these opportunities because the return is not commensurate with the risk taken. With the decline of supply side forces that pushed these IPOs into the market, they have simply disappeared due to their inability to survive and grow in the public markets.

You can read Professor Davidoff’s synopsis here. Scroll to the bottom of that page to download the PDF of the report. 

Coincidently, Forbes just published (3/6/2014) an article on the costs v. benefits of SOX. You can read that article here.

We speak with micro and smallcap companies executives each day – and we are keenly aware of their frustrations. Both Vintage Filings and PR Newswire offer services and –frankly– pricing expressly tiered for small companies and the regulatory cards that ALL companies are dealt.

The Davidoff report’s bottom line indicates that investors are not hearing and/or understanding the corporate vision. What do investors want? This report will tell you.

Have a great day.

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Hone your work each quarter in advance of the final XBRL Limited Liability expiration

Untitled-1FRIENDLY REMINDER (ignore the bully club cop) If you are still swinging over the Limited Liability safety net, it’s about time take a sharp look at your XBRL work.

Under Rule 406T, the SEC provided for limited liability during the XBRL phase in period. During the limited liability the XBRL exhibits were considered “as furnished” as opposed to being “as filed”. The limited liability starts with the registrants’ first XBRL filing and expires after 24 months, but no later than October 31, 2014. 

Under section 406T, entities are subject to the antifraud provisions under the Securities Act of 1933 and Exchange Act of 1934. However, under 406T, no liability with result for the XBRL files if:

  • The registrant makes a good faith attempt to comply with Rule 232.405 (Regulation S-T general rules for electronic filings; and…
  •  The registrant promptly amends the XBRL exhibit to comply with Rule 232.405 after becoming aware of a compliance failure.

SEC’s Accounting Quality Model (AQM) and Enforcement Priorities

The SEC’s Division of Risk, Strategy and Financial Innovation (RiskFin) is implementing the AQM program (dubbed “Robocop”) that will utilize XBRL among other data sources to assess registrants’ financial statements for anomalies. AQM is designed to identify earnings management, companies that stand out from their peers or other outliers, information that may assist the commission in its examinations.

(In other words - create custom (extensible) tags ONLY if there is no other comparable, appropriate taxonomy defined. )

Talk with your counsel. Also, more information about AQM can be found here.

What is your XBRL workflow? Tell us here and see how fleXBRL will work for you.

Have a great day