XBRL Tagging (#108)
/In this podcast episode, we discuss the requirements for XBRL tagging in financial statements. The key points made are:
XBRL is short for extensible business reporting language. It was developed to improve transparency in financial reporting.
XBRL is required by the SEC for the reporting of all publicly-held companies, starting in 2009 in a staggered rollout.
The SEC mandates that XBRL be used to tag all numbers in the footnotes, as well as the financial statements.
XBRL is also required in other countries, such as the Netherlands, China, the United Kingdom, and Australia.
Expect to spend around 300-400 hours per year doing financial statement tagging. You can conduct tagging activities in-house, or outsource it.