The U.S. Securities and Exchange Commission (SEC) began using XBRL (eXtensible Business Reporting Language) in 2005.
Initial Adoption and Evolution of XBRL at the SEC
The SEC's journey with XBRL commenced with a voluntary initiative aimed at modernizing financial reporting.
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2005: Voluntary Filing Program for Corporations
In 2005, the SEC established a voluntary XBRL filing program. This initial phase allowed corporate entities to submit their financial statements using the XBRL format. This move was a significant step towards leveraging structured data for improved transparency and analysis in corporate disclosures. -
2007: Expansion to Mutual Funds
Building on the early success and potential of the voluntary program, it was expanded in 2007. This expansion specifically permitted mutual funds to submit their risk/return summary information as XBRL exhibits. This broadened the scope of structured data adoption across different types of financial entities regulated by the SEC.
These early programs laid the groundwork for the SEC's subsequent mandatory XBRL reporting requirements, transforming how financial data is collected, processed, and disseminated, and enhancing the ability of investors and analysts to access and utilize financial information more efficiently.
Key Milestones in SEC's XBRL Integration
The table below summarizes the foundational years of XBRL integration at the SEC:
| Year | Initiative | Scope |
|---|---|---|
| 2005 | Establishment of voluntary XBRL filing program | Corporate financial statements |
| 2007 | Expansion of voluntary XBRL program | Mutual funds (risk/return summary information) |
These initial voluntary steps were crucial in understanding the practicalities and benefits of structured data, paving the way for more widespread and eventually mandatory XBRL adoption within SEC filings.
