The AI paradigm shift has opened up possibilities for truly automated XBRL tagging that go far beyond just checking for tag presence. Current software can verify if tags exist, but struggles with contextual accuracy. Filing agents, can often be constrained by tight deadlines and may distribute a single filing across multiple team members - leading to inconsistencies within the same document. This is why most 10-K/Q filings we come across contain at least a few IXBRL errors, whether they're missing tags, incorrect tags, or inconsistent tagging of identical items. In fact, for one of our customers, our platform indicated around ~30% incorrect/inconsistent tags on a previous 10-Q. The SEC comment letter from September 2023 indicates that that the correctness and consistency of tags is as important as their presence. The reality is that with proper document parsing, most XBRL tagging (including custom tags) can be automated with complete correctness.
A Trap for the Unwary: Inline XBRL Strikes Again this Annual Reporting Season | The Corporate Counsel A new blog post by Senior Editor Dave Lynn. #annualreporting #proxyseason #cybersecurity #XBRL #EDGAR #corpgov https://lnkd.in/gW_YwZiw