Are you ready for interactive data?

• Author: Savage, Michelle
• Position: Technology - Financial reporting standards

Those in companies with a public float of more than $5 billion might have to start submitting extensible Business Reporting Language (XBRL)-formatted financials as early as the first quarter of next year.

In May, the U.S. Securities and Exchange Commission voted unanimously to formally propose mandating XBRL for public company filing. A final ruling is expected later this year.

If the rule proposal is enacted in its current form, it will require domestic and foreign issuers that use U.S. generally accepted accounting principles--and eventually those that use International Financial Reporting Standards--to submit their primary financial statements and footnotes in XBRL format.

Requirements for XBRL sub mission would follow a phased approach, with the largest companies filing first, followed by second and third waves of firms, based on their market capitalization.

Domestic and foreign large accelerated filers using U.S. GAAP that have a worldwide public float above $5 billion would be subject to the new rule beginning with companies with fiscal years ending after Dec. 15, 2008. (See more about the rule in the article on page 34.) All other accelerated filers would be required to start filing in year two and all filers in year three.

For companies that fall into the first wave of required XBRL filers, or just to get a head start and be prepared, it's time to start getting educated now.

Get Educated

Learn about the rule proposal. Get information about the proposed rule, including details about the direction and timing planned for the SEC's use of XBRL at www.sec.gov. Visit the SEC's interactive data spotlight page where you can read news, test out demonstration viewers, check out which companies have filed in XBRL format, and view samples of various XBRL-formatted documents at http://sec.gov/spotlight/xbrl.shtml).

Find out more about XBRL and what it means for public companies. Visit industry association Web sites that maintain special educational sections on XBRL (see a sample list above).

Read the Public Company Accounting Oversight Board's Staff Answers and Questions on XBRL. Attend free educational webinars led by XBRL pros or sign up for training sessions conducted by XBRL US members. Register for sessions at www.xbrl.us/events.

Learn from others. Hear about challenges and successes from participants in the SEC's voluntary filer program and others with XBRL experience Find out which companies have participated and see their actual XBRL...