Can you spell XBRL? Or is it XBLR? We have a hard time keeping it straight in our Edgar filing office. This acronym is multiplying in popularity or rather infamousness among public panies as the year 2011 waxes full.

We are talking about the SEC mandate, now beginning its third year, requiring all panies that file a 10K to now also file XBRL Interactive Data. While many and magnanimous benefits surround XBRL filing, this has public panies running scared – and many panies are just sticking there heads in the ground hoping that the SEC is just bluffing.

On this ic I have seen a lot of misinformation, nfusion, and scare tactics. Well meaning folks are trying to enurage public panies to be responsible (and hopefully profit in some way). My goal is to go right to the bottom line: the straight sop.

2011 is the third year of the SEC three-year rollout, and it is happening. More than 1,500 panies are already filing XBRL interactive data with the SEC each quarter. They have struggled, invested time and money, and are current with their filings. This is not going away.

It is estimated that 8,700 panies are required to file XBRL interactive data for the first time this year (2011). It is also estimated that at least half of those panies have not yet decided how they will meet this requirement.

nsequences

So what is the penalty if I don’t ply? What happens if I ignore this and just wait for the SEC to let me know?

If you flip to page 24 of the SEC’s Final Rule on Interactive Data to Improve Financial Reporting, you will see there that ignoring this filing is just about the same as ignoring filing your 10k or 10q. The SEC reports the registrant as not being current with its filings, and all of the punitive action acpanying that status applies. Actually it’s not really that bad, because once you do file your XBRL interactive data, the SEC will nsider you current with your filings.

On the positive side, filing XBRL interactive data with the SEC is actually a service to investor munication benefiting stock holders, analysts, and the pany itself. You may want to review “How XBRL improves analysis,” by Michelle Savage.

Action Plan

Ok so what actually do I need to do? You need to file a new exhibit at least four times a year. Exhibit 101, “Interactive Data” must acpany your 10-K and each of your 10-Q filings. Alternatively, EX-101 may be filed by attaching it to an 8-K. Any time you file financial statements (e.g., S-1 Registration, amended 10k or 10q, special purpose 8k, etc.), an Exhibit 101 must be filed. The SEC provides more details under Rule Release No. 33-9002 at the url above.

The trick is managing the time and expense needed to prepare Exhibit 101. More on that as well as the filing deadlines to be addressed in the next article.

Efraim Lezak is the president of mpletion rp., an Edgar Filing Agent of fifteen years responsible for Edgarizing and filing thousands of SEC pliance documents via SEC EDGAR. mpletion rp. is the creator of an automated online Edgar Filing Agent, . mpletion rp. is mitted to providing dependable, enomically sensible solutions to XBRL and Edgar filers

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