XBRL Tagging (#108)
/In this podcast episode, we discuss the requirements for XBRL tagging in financial statements. The key points made are:
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XBRL is short for extensible business reporting language. It was developed to improve transparency in financial reporting.
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XBRL is required by the SEC for the reporting of all publicly-held companies, starting in 2009 in a staggered rollout.
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The SEC mandates that XBRL be used to tag all numbers in the footnotes, as well as the financial statements.
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XBRL is also required in other countries, such as the Netherlands, China, the United Kingdom, and Australia.
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Expect to spend around 300-400 hours per year doing financial statement tagging. You can conduct tagging activities in-house, or outsource it.