Live Blogging from the SEC Open Meeting ("Let There Be Light" Edition)

Here we go...just over 8 years from the official "coming out" party of XBRL at the Morgan Stanley offices in New York City.  I remember the event well and in fact, after the session was over, a few of us zealots were hanging out munching on left-over food and said "You know, wouldn't it be cool for the SEC to one day use [read: mandate] this technology?"  Well, seems pretty clear to me that vision is about to become reality.  Buckle up and here we go!

[NOTE:  I'm live-blogging from the event so please excuse my fat fingers, typos and bad grammar; I'll clean it up l8r.]

11:38:  Vote time...and it's unanimous...the proposed ruling was approved.  It's now officially "game on" for XBRL at the SEC.  Will this end up being the XBRL shot "heard 'round the world"?  Only time will tell but what's for sure is that XBRL adoption just took a major step forward.  60-day comment period for the proposed ruling begins now so let the real fun begin!  [Meeting adjourned.]

11:35am:  Did Casey just ask about/allude to the Modernization project?  Okay, okay...she just referenced validation in a question that Corey is responding to but she's right on:  This ruling on getting more XBRL data into the SEC is only half the equation.  What's the big picture/plan timeframe on the internal systems at the SEC around XBRL?  Am I allowed to ask a question?  Dang...probably not...

11:30am:  Over the past 6 months I think the larger companies started "getting it" in terms of knowing their time was coming around XBRL submissions to the SEC.  Commissioner Casey's focus on the small/medium filers is a good one as these registrants have honestly been in a bit in denial (no, not the river...;o) around XBRL and therefore haven't participated in any significant numbers in the current voluntary filing.  Monitoring costs and whatnot is good but small/medium folks be ready...XBRL is quickly coming to a theater near you!

11:23am:  Let's talk about the notes/footnotes tagging for a second.  For year one of a registrants's XBRL filings, the SEC will require the statements to be tagged in detail but the notes/footnotes in "block" or summary tagging only.  No surprise here...trying to "ease" companies into the tagging of the narrative information.  But year two...wow...they are heating things up a bit.  A registrant's second year (and assumed beyond) XBRL filings will have the notes/footnotes provided in detail tagging, just like the financials.  That's a substantial workload increase for year two of XBRL creation over year one.  Technically a company could begin the detailed tagging process during year one and simply choose to only submit the summary tagging for the notes/footnotes to the SEC but still...watch out for year two!!!

11:16am:  Providing registrants extra time (30 days) to file their XBRL the first, and the first time the notes/footnotes are tagged in detail, is a good olive branch to help alleviate fears of those first 500 that will soon be putting in place an XBRL strategy.  Too bad about IFRS apparently not being "officially" brought into the timeline in year 3.  I'm not clear what the hesitation is on bringing XBRL IFRS in more quickly as there already is an IFRS taxonomy (set of tags) available and Reuters has filed twice to the SEC using it.

11:05am:  Wow...it's out...everyone can breathe now...in-person attendees are now all sitting back a bit more in their seats.  My read is that they have closely followed the recommendation of CiFR and bitten off just enough to take XBRL to the next level at the SEC.  Not that it was a surprise but I thought the SEC would be a bit more aggressive and pick off all large accelerated filers in year 1.  Looks like it's dinner on me...

10:58am:  Details as follows:
FILINGS:  Annual and quarterly, domestic and foreign filers...US GAAP at first...IFRS soon
WHERE:  Submitted to SEC and placed on corporate web site
HOW:  Supplemental, does not replace existing ASCII/HTML
          Filed as new exhibit
DATA:  First year is statements in details and notes in block tagging
WHO:  3 year phase in, Year 1:Large Accelerated Filers, both domestic and international, that use the US GAAP, and have a worldwide float in excess of US$5 Billion, Year 2:  Remaining large accelerated filers; Year 3:  All remaining filers, including small companies
START DATE:  For filings on/after 12/15/2008
WHEN:  At the same time save for two exceptions:  30-day grace on first filing
LEGAL LIABILITY:  Similar to current voluntary program, furnished not filed, limited '34 Act liabilities

10:49am:    This should be interesting...big question is how much will the SEC deviate from the CiFR recommendations on XBRL.

10:43am:  "Unflagging" support of XBRL by the Chairman is an understatement.  Man the guy has big shoulders and literally moved XBRL from infancy to reality at least from an external/PR standpoint, especially in the early days, almost single-handidly.

10:38am:  Lots of love to go around...mostly well deserved kudos...and again the tie-back to the fact that the SEC has considered data "tagging" for a long time...not as many people assume as only within the past 3-5 years around XBRL.  On to the detail already!

10:31am:  The tie-backs on the Chairman's opening comments to the original launch of EDGAR is not surprising and in fact is a key message to registrants:  We've been here before...we all survived...and we'll continue to survive in the land of an XBRL mandate.

10:27am:  It's off to the races at 10:26 for the start of XBRL on a path to mandate XBRL over a time period of three years.  The first juicy fact of the mandate timeline?  Interesting...I thought it would be two...

10:24am:  Anticipation of the arrival of the Chairman and Commissioners is building while I wonder if I have time to run to the Starbucks at Union Station to get a little more caffeine.  Hmm...tough call...but if you'd like to tune into the video, do it here.

10.12am:  Turnout for the in-person event is somewhat surprisingly low...only about 60 people here in person.  Although the videocast of the event obviously had an impact, nothing like slingin' comments from the cheap seats at the back of the room...=)

Comments

[Miles Jennings]

So, in essence, the SEC said to EDGAR filers: "Let's play tag---you're it."

Thanks for your comments.