By Jason Bramwell
Individuals interested in reviewing the proposed 2014 US Generally Accepted Accounting Principles (GAAP) taxonomy from the Financial Accounting Standards Board (FASB) have until October 31 to submit their written comments.
The proposed 2014 US GAAP Financial Reporting Taxonomy, which was released by the FASB on August 30, 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 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 sixty-day comment period is intended to solicit feedback on these updates from users of the taxonomy and to provide SEC filers, service providers, software vendors, and other interested parties with the 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 2014 US GAAP Financial Reporting Taxonomy is expected to be finalized and published in early 2014. 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), parent organization to the FASB and the Governmental Accounting Standards Board (GASB), 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.
The 2013 US GAAP Financial Reporting Taxonomy went into effect May 20 after it was approved by the SEC.