Accounting Standards

SEC accepts reporting Taxonomies

The 2021 GAAP Taxonomy contains updates for accounting standards, improvements for two SEC final rules, and other recommended improvements

The Financial Accounting Standards Board (FASB) has announced that the U.S. Securities and Exchange Commission (SEC) has accepted the 2021 GAAP Financial Reporting Taxonomy (GRT) and the 2021 SEC Reporting Taxonomy (SRT).

In addition, the FASB finalized the 2021 DQC Rules Taxonomy (DQCRT), which together with the GAAP Taxonomy are collectively referred to as the FASB Taxonomies.

The 2021 GAAP Taxonomy contains updates for accounting standards, improvements for two SEC final rules, and other recommended improvements.

In addition to the GAAP Taxonomy, the 2021 DQCRT has also been finalized. According to the FASB, the DQCRT is “uniquely structured” from the typical design of XBRL taxonomies as it is narrowly focused on conveying the XBRL US Data Quality Committee’s (DQC) validation rules, predominantly for regulator use. 

It is not intended to be used in SEC filers’ extension taxonomies the way that the GAAP Taxonomy or the SEC’s Document and Entity Information Taxonomy (DEI) is used, the authority says. 

The DQCRT also contains a subset of the DQC rules. FASB Taxonomy staff evaluate the validation rules for inclusion in the DQCRT that have been available for use for more than a year, with consideration for how the DQC addressed any feedback received on a validation rule.

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