NEWS RELEASE 04/23/10
FAF/FASB and XBRL US Labs Announce Research Initiative
Project will
advance XBRL taxonomy maintenance and publishing best
practices
WASHINGTON, DC and NORWALK, CT, April 23,
2010—XBRL US Labs, the research and development arm of XBRL US, and the
Financial Accounting Foundation (FAF), the parent organization of the Financial
Accounting Standards Board (FASB), have announced a three-year agreement for
cooperative XBRL taxonomy research.
XBRL, or eXtensible Business
Reporting Language, is an XML standard for tagging business and financial
reports to increase the transparency and accessibility of business information
by using a uniform format. XBRL US and the FASB have worked together since 2006
to apply XBRL to US GAAP accounting standards for companies to digitally “tag”
complex financial statements and footnotes using a common language.
FAF
recently assumed maintenance responsibilities for the 15,000-tag US GAAP
taxonomy, which was developed by XBRL US under contract to the US Securities and
Exchange Commission (SEC). In 2009, the SEC issued rules requiring public
companies and foreign private issuers that prepare their financial statements in
accordance with US GAAP to phase in use of the US GAAP taxonomy. Under these
rules, companies will tag and submit their financial statements and related
notes to the SEC using the US GAAP taxonomy.
Under the agreement, FAF and
XBRL US Labs will collaborate and work cooperatively with each other to foster
the continued high quality and effectiveness of the US GAAP taxonomy and to
promote interoperability and consistency between future versions of that
taxonomy developed by FAF with other financial reporting taxonomies that XBRL US
will develop and implement.
“This agreement is a very positive
development for the XBRL standard, for a growing XBRL user base, and for our
relationship with XBRL US,” said Terri Polley, FAF President. “Working
collaboratively with XBRL US, we have an opportunity to build a more transparent
market using XBRL taxonomies.”
The research will build on tools and
techniques developed by XBRL US Labs to maintain and publish taxonomies for
tagging financial statements. XBRL US Labs is also engaged in other research
projects to standardize common business reports for mutual funds, credit
ratings, mortgage-backed securities, and corporate actions such as dividends and
mergers.
“The collaboration between XBRL US and FAF is a powerful
combination of technology standards and accounting standards,” said Barry
Melancon, President and CEO of the American Institute of CPAs (AICPA) and XBRL
US chairman. “This work will strengthen a solid foundation for expanding XBRL
adoption in the public and private sectors.”
Contact: Neal McGarity, FAF
Director of Communications, 203-956-5347, nemcgarity@f-a-f.org
Contact:
Michelle Savage, Vice President, Communication, 917-747-1714, michelle.savage@xbrl.us
About
the Financial Accounting Foundation
The FAF is responsible for
the oversight, administration, and finances of both the Financial Accounting
Standards Board and its counterpart for state and local government, the
Governmental Accounting Standards Board. The FAF also is responsible for
selecting the members of both Boards and their respective Advisory Councils.
About the Financial Accounting Standards
Board
Since 1973, the Financial Accounting Standards Board has
been the designated organization in the private sector for establishing
standards of financial accounting and reporting. Those standards govern the
preparation of financial reports and are officially recognized as authoritative
by the U.S. Securities and Exchange Commission and the American Institute of
Certified Public Accountants. Such standards are essential to the efficient
functioning of the economy because investors, creditors, auditors, and others
rely on credible, transparent, and comparable financial information. For more
information about the FASB, visit our website at
www.fasb.org.
About XBRL US
XBRL US is the
non-profit consortium for XML business reporting standards in the U.S and it
represents the business information supply chain. Its mission is to support the
implementation of XML business reporting standards through the development of
taxonomies for use by U.S. public and private sectors, with a goal of
interoperability between sectors, and by promoting XBRL adoption through
marketplace collaboration. XBRL US has developed taxonomies for U.S. GAAP,
credit rating and mutual fund reporting under contract with the U.S. Securities
and Exchange Commission. XBRL US Labs, the research and development arm of XBRL
US, leverages the XBRL US platform, methodologies and people to address the
quality of taxonomies and the harmonization of XBRL with other XML
standards.