Unless you work in the financial markets you likely have no idea what XBRL tagging is. It is a method to identify and tag accounting data in an SEC reporting company’s quarterly and annual financial reports. XBRL tagging has been adopted by the SEC because it makes it easier for investors and the SEC to read and analyze data across competitors and industries. What do you need to do about XBRL tagging? Nothing if you have the right SEC filing agent on board!
What You Need to Know
XBRL is an acronym for extensible business reporting language. It is the most accepted programming language around the world for sharing financial information. It is used by stock exchanges, security regulators, accounting groups, corporations and financial houses. This language is used to tag information with a range of accounting taxonomy concepts and facts to ensure easy dissemination of information to the public. This is a universal language that helps concerned parties to better retrieve, store and share data.
It has Its Perks
For the most part XBRL tagging is a useful tool because it provides:
- A universal coding across all genres
- Can be easily imported into other models for financial analysis
- Easier to analyze
Anything that makes financial information more fluid, easier to recognize and easier to analyze is a good thing. There are a lot of organizations that financial information flows through, using one language that all organizations can understand is better for all parties concerned. It makes it easier for data to be reviewed with a specialized data reader. It is also a requirement by the SEC to appear in all quarterly and annual reports for public companies.
Formatting XBRL
If you have the right EDGAR filng agent, formatting for XBRL is something you do not have to worry about, your agent can handle the necessary tagging and accounting analysis. Your documents will be formatted to include these tags and meet the expectations of the SEC and other financial institutions. Colonial Stock Transfer Company, Inc. is an EDGAR filing agent that has the tools you need to successfully submit your EDGAR and XBRL filings to the SEC.
