Implementing XBRL Reporting

Options and Issues to Consider

Deb Sledgianowski, PhD, PMP, and Robert Fonfeder, PhD, CPA, CMA, and Nathan S. Slavin, PhD, CPA

In January 2009, the SEC ruled that public companies will now be required to file their financial statements using Extensible Business Reporting Language (XBRL) interactive data to be phased in beginning in 2009, with all U.S. publicly traded companies complying by 2011. As such, high-level accounting personnel and CPAs should consider their options when making decisions and recommendations related to XBRL implementation. Three options for accountants to consider are discussed below, along with eight characteristics of sourcing decisions to consider when developing the implementation plan and deciding whether the project should be outsourced or done in-house. For a primer on how XBRL works, see “How CPAs Can Master XBRL,” by Jianing Fang (The CPA Journal, May 2009).