The SEC’s Office of Structured Disclosure on Aug. 7, 2017, issued a brief update for the interpretive guidance in the Frequently Asked Questions (FAQs) for IFRS financial statements tagged in the eXtensible Business Reporting Language (XBRL).
The extra material in the question-and-answer format deals with the location of the tags for disclosure rules that are not part of the IFRS taxonomy, which is a set of instructions for preparing financial statements in interactive data.
The SEC said it wants foreign companies that prepare their financial statements in IFRS to refer to the U.S. GAAP taxonomy for standard XBRL tags. The tagging information for the financial statement schedules required by Rule 5-04 and Rule 7-05 of Regulation S-X is found in the U.S. GAAP Taxonomy Disclosure Relationship Groups numbered 991000, 993000, 993200, 993400, 993600, 993800, 994000, and 994200. Group 991000 also includes tagging instructions for the financial information for financial statements of guarantors and issuers of guaranteed securities required by Reg S-X Rule 3-10.
The tagging information for the disclosure rules about oil and gas production required by Instruction 2 of Item 18 from Form 20-F are in the U.S. GAAP Taxonomy Disclosure Relationship Group 965000.
The EDGAR Filer Manual says that facts that are used together in a calculation are part of the same relationship group.
The Electronic Data Gathering, Analysis, and Retrieval (EDGAR) filing system was updated on March 1 to accommodate XBRL exhibits for IFRS financial statements with the publication of Release No. 33-10320, IFRS Taxonomy for Foreign Private Issuers That Prepare Their Financial Statements in Accordance With International Financial Reporting Standards as Issued by the International Accounting Standards Board. In the first version of the FAQs published in April, the SEC said companies must use the IFRS taxonomy specified on the agency’s website.
Foreign companies that have been preparing their financial statements using IFRS must start submitting their annual reports on Form 20-F or Form 40-F for fiscal years that end on or after Dec. 15, 2017, using the IFRS taxonomy. XBRL submissions using the IFRS taxonomy will appear in EDGAR and XBRL data using the IFRS taxonomy will also be incorporated into the annual and quarterly financial statement data sets on the SEC’s website, the market regulator said.
For more information about preparing XBRL submissions in EDGAR, the FAQs said companies should look at the EDGAR Filer Manual, which details the technical requirements to prepare, validate, and submit filings in XBRL. The SEC referred people who want more information about XBRL and the IFRS taxonomy to the IFRS Foundation website.
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