SEC Wants XBRL Tags to become GAAP

SEC Chairman Christopher Cox announced the completion of the XBRL taxonomy and advocated use of XBRL in publicly-traded company financial reports. AICPA Chairman Barry Melancon praised the development as a step forward in financial transparency. At the moment, use of XBRL in financial reporting to the SEC is optional but next spring the SEC is considering whether XBRL should be required for publicly-traded businesses. A download of the taxonomy will be able by early December and the SEC plans to convert its Edgar database to XBRL in the near future. Other countries, such as South Korea, Spain and Canada, are also considering XBRL adoption.

Congratulations to those whose hard work has cumulminated in the XBRL taxonomy. By the way, tax readers, do NOT overlook this development; the IRS is considering implementation of XBRL for corporate tax reporting.