FSN: SEC consults on interactive financial data via Internet and XBRL

SEC consults on interactive financial data via Internet and XBRL

27th March 2006
The Securities and Exchange Commission announced a series of roundtable consultations last week focused on speeding the implementation of new Internet tools that will help provide investors and analysts with better financial information about companies and funds. The roundtables will review the experiences from the first year of a pilot program to use so-called interactive data for company filings with the SEC using XBRL.

Interactive data permits Internet users to search for and use individual items of information from financial reports, such as net income, executive compensation, or mutual fund expenses. Today, even computer-based financial information is generally presented in the form of entire pages of data that can't easily be separated. Approximately a dozen companies participated in the voluntary program in its initial year.

The roundtables will also use the lessons learned from the pilot program in order to develop new ways to get analysts and investors significantly better information. Topics will include what investors and analysts are looking for in the new world of interactive data; how to accelerate the use of new software that permits the dissemination of interactive financial data; and how to best design the SEC's requirements for company disclosures to take maximum advantage of the potential of interactive data.

Representatives from investors, issuers, auditors, analysts, technology professionals, regulators, and others will be invited to the roundtable discussions.

“It is now within our reach to get dramatically more useful information in the hands of investors," said SEC Chairman Christopher Cox. “We look forward to these discussions on implementing interactive data initiatives that can benefit investors as quickly as possible, and we welcome the opportunity to learn from investors and other users of financial information how the SEC can improve our own disclosure program.”

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