The move to XBRL filings will roll out in stages, with about 500 so-called "large" domestic and foreign issuers expected to submit XBRL versions of financial reports this winter. This is according to the Securities and Exchange Commission, which last week issued a rule proposal concerning XBRL adoption.
Beginning with fiscal periods ending on or before December 15, companies with a public float of $5 billion or more will have to begin using XBRL reporting.
Initially, reporting companies are required to have single tags, or identifiers, for each footnote but beginning in year two of the company's XBRL reporting, more detailed tags within the footnotes themselves will be required.
One group, XBRL US, believes the financial services industry will come to view the XBRL as the next evolution of the SEC EDGAR database. The group also predicts the gradual rollout will provide impetus for software providers to build out XBRL-enabled tools.
"We applaud the efforts of the SEC to improve the efficiency of the markets with corporate information that is faster to market and higher in accuracy and integrity," the industry group said in a release concerning the SEC's rule proposal.
And as more content becomes available in XBRL, the industry group predicts increased traction with the investment community, driven by a desire for higher-order analytics and the fact that large investment firms also stand to reduce costs.