As reliance upon Extensible Business Reporting Language (XBRL) exhibits by market participants grows, the potential risks and consequences to companies may expand accordingly. Companies will have to address compliance with applicable federal securities laws and will want to avoid market consequences that might result from XBRL exhibits that are inconsistent with the information in the original financial statements. The SEC prescribed limited liability for XBRL exhibits submitted within the first 24 months from the time the company is first required to submit XBRL exhibits. After this period, the liability provision for XBRL exhibits will be aligned with existing penalties for financial–statement filings.
- You already need to comply with the SEC’s requirement to present XBRL-formatted financial statement information?
- You are considering whether to outsource the preparation of the XBRL exhibit or keep it in-house?
Although the SEC does not require an auditor’s attestation report on the XBRL exhibits, an auditor may perform agreed-upon procedures on the XBRL-formatted financial statements. In addition we could provide the following services:
1. Advice and assistance in connection with the creation of XBRL-formatted financial statements, such as:
- discussing XBRL basics, requirements, process and timetable with management
- identifying considerations for the implantation and creation of XBRL documents, including general advice and feedback on a client’s plans
- helping the client understand the general considerations for selecting tags.
- assisting the client with XBRL training of their personnel
- providing the client with training materials
- providing feedback on the client’s project management for the creation of XBRL formatted financial statements.
3. Providing feedback on the client’s project management for the creation of XBRL formatted financial statements