Three years ago, the Securities and Exchange Commission introduced a financial reporting “tagging” concept called eXtensible Business Reporting Language (XBRL). Seventeen pioneers—including 3M Company, Altria Group, Microsoft, Pfizer, and Xerox—volunteered to file their financial statements using XBRL, to see what this new technology could do.
Fast forward to today. On May 14, the SEC voted to publish a proposed rule that would require companies to start filing financial statements tagged in XBRL as soon as next spring. First would be businesses using U.S. Generally Accepted Accounting Principles and carrying a worldwide public float of more than $5 billion (that is, the 500 or so largest public companies in the United States). The remaining companies using U.S. GAAP would be required to use XBRL over the next two years. Those using International Financial Reporting Standards would have until late 2010 to comply.
