With the first phase of the Inline XBRL Rule coming into effect September 17, 2020, it is important to understand there is added complexity and challenges in adopting the new Inline XBRL Rule.
What Inline XBRL means:
- The elimination of the 15-business day grace period between the information filed in HTML and the XBRL tagged version
- Simultaneous HTML and Inline XBRL preparation and review
- Shortened review and approval process times
- Embedding XBRL tags directly into the html document filed with the SEC
- Validating all content within the primary document is xhtml compliant
Ultimately the new rule will require tighter filing deadlines, which fundamentally means compliance and legal teams needing to evaluate existing work flow management processes, revisiting current technology, how current work is being tasked internally or externally (outsourced), and looking at potential new ways in standardizing operations. Moreover, unlike corporate filers, prospectuses for mutual funds can run into the hundreds of pages that will require robust Risk/Return summary tagging to generate Inline XBRL.
Things to consider as you transition to Inline XBRL
- If you work with multiple vendors, ensure processes are in place to align HTML preparation and Inline XBRL tagging so that filing dates are not compromised
- Find solutions that allow teams to simultaneously review and approve tagged data
- Companies that handle XBRL themselves need to be sure that their employees receive proper training on the new format
- Don't wait to begin your iXBRL implementation. Begin following best practices for your iXBRL compliance dates to assure that your submissions will meet SEC guidelines when the mandate takes effect
With the iXBRL mandate fast approaching, now is the time to begin choosing process options:
Create your iXBRL in-house
Outsource to a service provider,
Or through a flexible combination of the two.
If you are in the process of transitioning due to the new rule and are looking for additional support or are beginning to prepare for the new Inline XBRL rule, Toppan Merrill can help.
With over fifty years' experience as a leading regulatory compliance solutions provider, Toppan Merrill can help decrease the burden on resources, alleviate time constraints, and minimize compliance risks. Let us know how we can help with your Inline XBRL transition.
Toppan Merrill Inline XBRL Services Overview