Earlier this year, March 1, 2017 to be exact, the Securities and Exchange Commission announced that foreign private issuers (FPIs) following International Financial Reporting Standards (IFRS) and filing 20-F/40-F with the SEC in Edgar format now need to file in XBRL for fiscal periods ending on or after December 15, 2017.Said Acting SEC Chairman Michael S. Piwowar:
“Foreign private issuers will use the published IFRS Taxonomy for IFRS financial statements, which will enable the public to take advantage of enhanced data analysis of those financial statements, as they already can with financial statements of issuers that prepare their financial statements in accordance with U.S. accounting standards.”
Backing up: XBRL stands for “eXtensible Business Reporting Language.” An XML database that has nomenclature assigned to the numbers in the 20-F or 40-F filing. It’s also a mechanical requirement that’s filed as an additional exhibit at the same time as the 20-F filing.
If you have questions, and many foreign private issuers do, Issuer Direct can help.