The proposed taxonomy, which the FASB released on Sept. 1, contains updates for accounting standards and other recommended improvements to the official taxonomy, which is a list of computer-readable financial reporting labels coded in eXtensible Business Reporting Language (XBRL).
XBRL is an open-source computer language that allows companies to tag precisely the thousands of pieces of financial data included in typical long-form financial statements and related footnote disclosures. The tags allow users of financial statements to electronically search for, assemble, and process data so that the data can be readily accessed and analyzed by investors, analysts, journalists, and regulators.
The taxonomy is used by public issuers that are registered with the US Securities and Exchange Commission (SEC).
The 60-day comment period is intended to allow users of the taxonomy to provide feedback on these updates. It also gives SEC filers, service providers, software vendors, and other interested parties an opportunity to become familiar with and suggest revisions to the taxonomy, including incorporating new elements for current filings.
Instructions on how to submit comments are available on the FASB website.
The proposed 2016 US GAAP Financial Reporting Taxonomy is expected to be finalized and approved by the SEC in early 2016. Questions about using this taxonomy for creating and submitting XBRL-tagged interactive data files in compliance with SEC rules should be directed to the SEC. More details and guidance are available on the SEC's portal on XBRL.
In early 2010, the Financial Accounting Foundation (FAF), the parent organization to the FASB and the Governmental Accounting Standards Board, assumed maintenance responsibilities for the taxonomy. The FAF and the FASB assembled a team of technical staff dedicated to updating the taxonomy for changes in US GAAP, identifying best practices in taxonomy extensions, and technical enhancements.