Great article in FWC about the status of XBRL as required in the DATA ACT. FCW provides federal technology executives with the information, ideas, and strategies necessary to successfully navigate the complex world of federal business.
The DATA ACT passed by the US Congress unanimously and passed into law by President Obama in 2016 uses the global XBRL data format for accounting. XBRL continues to move forward in providing greater transparency in taxpayer-paid government financial transactions transparency but the road toward accountability and transparency has not been easy - but the results have meant better government management of programs to serve the public interest.
From the article:
Almost all Inspector Generals (IGs) made recommendations about how to improve their DATA Act reporting. The most common recommendations "related to the need for agencies to develop controls over their data submissions, develop procedures to address errors, and finalize or implement procedures or guidance," GAO stated. Nine CFO Act IGs recommended the modification of systems or the implementation of systems controls. By and large, agencies concurred with the recommendations.
Actions are underway to move XBRL into financial reporting for each of the 24 federal agencies to reduce financial mismanagement. Taxpayers want to know why we have more than $144 billion in improper payments of US taxpayer dollars spent in across the 24 Federal agencies.
Legislation has been introduced to add the XBRL data standard to be used for the 24 federal financial statements for greater transparency and accountability. Let’s hope Congress moves forward to use XBRL for this effort as well as the US SEC has moved forward with using Inline XBRL for public company financial disclosure transparency to help reduce the $144 Billion improper payments federal agencies have made on a annual basis by using the XBRL data standard.
Congressman Darrell Issa: “Passing the Financial Transparency Act would be a big achievement for data transparency and the openness of public information. What my previous legislation, the DATA Act, is doing to open up government spending through online, searchable and freely accessible data, the Financial Transparency Act would do for financial reporting information. Financial reporting often relies on cumbersome – and duplicative – paper or PDF reports that make it difficult for regulators, and the public, to track down the information they need. By updating the process to an open data standard for the information already reported to the nation's eight financial regulatory agencies, we’ll be able to reduce regulatory burdens on businesses, give the public and investors better access to information, and boost our ability to find, and prevent, instances of fraud.”
Congressman Jared Polis: "This bill is a common-sense solution, which will help make financial reporting more transparent, efficient, and accessible to the public,” Polis said. “Access to financial information is a win for consumers, businesses, as well as regulators.”
Countries like Australia and the Netherlands are using XBRL for a “Standard Business Report” that companies are disclosing that is shared across stock exchanges, regulators and investors. It looks like Congressman Issa and other members of Congress from both parties would like the same model to apply to make businesses competitive and reduce regulatory reporting burden. More than 2/3 of the world’s capital markets are using XBRL for better financial statement reporting by public companies.
With the XBRL global data standard – data reported by a company can be pulled off the Internet and put into Excel or business models for instant analysis without re-keying data.
Efforts are underway to use XBRL for non-financial information that companies disclose which also includes natural and human capital metrics to deal with better corporate governance topics such as global warming, diversity and inclusion, human trafficking and child labor.
The IMA supports the build-out of XBRL because it allows management accountants to move away from keying data into Excel spreadsheets and move to data analytics – predictive analytics for companies they serve.
The IMA is one of the founding members of the XBRL consortium to use data analytics for better financial management across the capital markets and government.
Use the IPSASB move forward is using XBRL for government reporting transparency on an international basis? Stay tuned. Management accountants are working in both the private and public sectors and can play a key role as XBRL continues to be build out across 70 countries used by more than 100 regulators and governments world-wide for better accountability and transparency to make better decisions.
To learn more about XBRL and its use around the world – including government The Data Amplified Conference will be in Dubai on November 13-15, 2018 in Dubai to discuss XBRL, data analytics, its increasing use in Blockchain, distributed ledgers and smart contracts.