A Comparison of XBRL Filings to Corporate 10-Ks - Evidence from the Voluntary Filing Program

Abstract

The SEC phase-in of XBRL financial statement filings began June 2009, and by 2011, all public registrants will be required to file XBRL disclosures. While the SEC expects the interactivity of XBRL-tagged data to add value to financial reports, this benefit will materialize only if the XBRL statements are accurate and reliable. If inaccuracies or other significant problems occur in initial XBRL filings, registrants stand to lose credibility and users will lose confidence in the data, potentially forcing the abandonment of the XBRL reporting initiative. This study evaluates the accuracy of early voluntary filings and develops an expectation about the accuracy of mandated filings. While improvements in the XBRL standard and related technology will mitigate certain errors, other errors, related to inexperience, will persist. This study identifies those errors and makes recommendations about how to reduce experience-related errors.