Common Errors in XBRL Filings with the SEC:
Now that Canadian firms listed with the SEC
are required to file in XBRL, it is useful to consider the kinds of errors that
other firms have made with their XBRL filings. Some errors are more common than
others.
Sometimes amounts relating to an element are
entered as negative because it is known they are to be deducted in the final presentation.
However, the taxonomies usually take this into account. For example, there is a
calculation linkbase that makes these
calculations and uses the amounts as positive amounts. If filers enter them as
negative, then the taxonomy deducts the negative values, thus adding it rather than
subtracting it. On the other hand, sometimes positive numbers are entered for
elements that require a negative value.
Companies can create
extensions to the taxonomy being used if they cannot find an element they want
in the taxonomy. This is a capability designed to enable companies with unusual
financial statement items to create a matching taxonomy element. However,
extensions are sometimes created for elements that do exist in the taxonomy but
were just missed by the filer. Or incorrect elements are created.
Sometimes a filer simply
enters incorrect values into the filing for a particular element. Some of the
very basic rules of accounting come into play here. For example, does the
balance sheet balance? Do the notes tie into the financial statements?
Sometimes incorrect dates
are included in the filings. For example, fixed assets might be disclosed as
being acquired on a date after the fiscal year, when it is obvious they were
acquired during the year.
Sometimes a required value
is not reported and sometimes a value is reported for an element that should be
zero.
Sometimes filings are incomplete, with some
statements or elements or forms missing.
The filing rules call for detailed tagging,
but sometimes such detail is missing.
It’s clear from these errors and others
that there is no one answer to avoiding them. Rather there is a need to use the
types of procedures usually used in preparing accounting reports, such as
independent quality reviews, numeric checks, and data cross-checks.
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