Did you know banks have been reporting in XBRL for almost ten years? I did not.
As reported by Bloomberg BNA, the banking sector have been submitting their mandated quarterly FDIC Call Reports in eXtensible Business Reporting Language (XBRL). “The FDIC saved millions of dollars having all the banks report to them in this very standardized format,” said Glen Gray, professor at California State University. “That sometimes gets lost in these [XBRL] discussions.”
Also, per Bloomberg, “the U.S. Treasury Department, for example, is gearing up to get federal agencies like the Internal Revenue Service and others to use XBRL to submit data reports. Overall, over 60 regulators globally have either adopted or are in the processing of using XBRL. these include: the Netherlands, the European Union, the U.K., Australia, Japan, Korea, India, Russia, Brazil and Mexico.”
This follows on last week’s discussion (READ HERE) of XBRL being used by investors, in spite of general ongoing perceptions. Even as recent as Monday, the National Investor Relations Institute (NIRI) published this statement: “The SEC should resist calls for an expansion of XBRL reporting requirements, in NIRI’s view, until it examines whether a significant number of investors use XBRL and whether the benefits outweigh the compliance costs.”
Let’s be clear. No investor is ever going to say “I use XBRL.”
The question to ask investors is not “do you use XBRL,’ but rather… “would you like a single source of financial reporting data on an issuer that is directly and verifiably published by that issuer?”
IR should want that too. XBRL is the apex of “controlling your financial narrative.”
Lastly, if you still feel your company is paying too much for XBRL processing, you may be doing it wrong. Contact me directly and I can have you speak to one of our XBRL accountant.