Changes to accounting rules can move markets: Use structured data to inform policy decisions

A new comment letter from CFA Institute to the Financial Accounting Standards Board (FASB) demonstrates the value of using structured data to inform debate and support policy decisions. The FASB is considering alternatives to existing accounting treatments for goodwill i.e., amortization (set annual write-downs) over impairment (i.e., annual evaluations).  In our letter, we argue that the FASB has not considered the magnitude of the goodwill balances they likely would put on a schedule to amortize over a period of 10 […]

XBRL US Investor Forum on How Standards Disrupt the Status Quo

An upcoming event takes a deep dive into how data standardization is modernizing the capital markets and delivering on the fintech promise. Blockchain. Alternative data. Automation through standards. Regulatory and legislative changes. All of these factors are changing the way financial institutions operate, disturbing the status quo, shuttering outdated businesses, and opening new ones. These disruptions are affected — and sometimes driven — by financial data standards. Information drives our analyses and our decisions. As […]

Structured Data changing Our World: Examples from around the World

In the latest paper issued by CFA Institute, Data and Technology: How Information Is Consumed in the New Age, takes a deep dive into how structured data (i.e., machine readable data) contained in regulatory filings in the form of XBRL (a type of structured data) is being consumed by investors and analysts. XBRL is not only used just for reporting to securities regulators but also used by lenders, tax authorities, and other regulating bodies for analysis. The […]

XBRL Taxonomies

CFA Investor Forum Discusses Who’s Using XBRL and Why

At CFA’s Investor Forum 2017, a panel of industry experts discussed case studies that illustrate XBRL’s use in accounting and financial reporting and the rationale behind its adoption. This panel discussed different ways in which XBRL is employed in the financial sector. Included on the panel were Todd Castagno, Executive Director of Morgan Stanley, Christine Tan, Chief Research Officer and co-Founder of idaciti, and Mike Willis, Assistant Director of the Office of Structured Disclosure of […]

XBRL framework

Manner in which XBRL filing can be helpful to Companies and Investors

Regulatory authorities around the world have adopted rules requiring companies to provide their financial reporting in a structured data, machine-readable format i.e. eXtensible business reporting language (XBRL). The vision of XBRL filing is that the format would enable investors and analysts to capture and analyse information more effectively, as well as help companies automate their financial report filings with the Regulators. Eventually, both preparer and investor costs would be reduced through the use of XBRL. […]

Realizing the Potential of Structured Data

Despite its presence and use for several years now, XBRL has not achieved its full potential for either investors or companies in the United States. One reason is that companies continue to see structured data as a compliance and cost burden, and they have shared these views with regulators. Securities regulators worldwide are examining costs and some of what has been learned may be particularly relevant to them. The CFA Institute paper, “The Cost Of […]