The Securities and Exchange Commission (SEC) Release Nos. 33-11070 and 34-095025, effective July 11, 2022, mandated the use of Inline eXtensible Business Reporting Language (XBRL) for the filing of statements and accompanying notes to the financial statements required by Form 11-K. The implementation deadline is three years from the rule’s effective date.
Data in Form 11-K, used for annual reports of Employee Benefit Plan (EBP) and other plans, would be tagged in Inline XBRL for filing. XBRL allows analytical tools to extract information from financial statements, allowing for data to be machine readable and in a format easily accessible in databases such as EDGAR. The instructions in Form 11-K have been updated to include information on Interactive Data (Section F). XBRL tags and (or) elements for preparers to tag financial statements and note disclosures can be found in GAAP Taxonomy for Financial Accounting Standards Board (FASB) Accounting Standards Codification.
Additionally, on July 26, 2024, the FASB issued a draft, Employee Benefit Plans (Including Defined Contribution Plans Filing SEC Form 11-K) and GAAP Financial Reporting Taxonomy and SEC Reporting Taxonomy, collectively referred to as the “GAAP Taxonomy” Implementation Guide Series.
The proposed guide shows modeling for EBP plan reporting through examples and how that modeling is structured within the 2024 Generally Accepted Accounting Principles (GAAP) Taxonomy, assuming the entity meets the criteria for reporting under GAAP and (or) the SEC. The guide communicates how the GAAP Taxonomy are designed and how “elements and relationships are structured.”
The FASB is requesting comment from interested parties on the draft proposal by September 24, 2024.
