Last Thursday the SEC Chairmen Christopher Cox announced that the combined market capitalization of companies submitting interactive data financial reports to the SEC has surpassed $2 trillion. 7 companies have joined over the last 3 months bringing the total voluntary group to just 40.
“The continued positive feedback from our enthusiastic group of test filers means that interactive disclosure is well on its way to becoming reality,” said Chairman Cox. “Investors in the future will have instant, user-friendly access to company disclosures that are far more accurate than anything that is possible with today’s EDGAR.”
Interactive data refers to financial information provided using XBRL (”eXtensible Business Reporting Language”) or any other computer software language that labels companies’ financial data with codes from standard lists called “taxonomies” so that investors and analysts can more easily locate and analyze desired information in a public company’s financial statements.
This milestone is one of many related to XBRL and there is sure to be more in the near future. XBRL (aka interactive data) is an important trend in disclosure and is one of the main elements in transforming how market analysts and ordinary investors obtain and use financial information.
Interactive disclosure is an important trend for us here at Q4 and is impacting many of our soon to be released products. Look for XBRL based disclosure extensions to show up in Q4 PRESS in the near future.
Technorati Tags: Q4 Web Systems, Q4, XBRL, Disclosure, Disclosure Risk, Disclosure Risk Management, Q4 PRESS
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