Proponents of XBRL argue that XBRL will make possible a clear, consistent presentation of financial statements, allowing more comprehensive and frequent (and possibly automated) oversight. However, the problem with assigning a presumed level of integrity for tagged information is that there is no guarantee that the data is factual!
Given the unlimited and substantial financial incentives for unscrupulous behavior in the business world, this reality is quite material. It is critical therefore those XBRL statements be posted after an audit to allay concerns that companies may simply demonstrate “transparency" by providing such samples.
Friday Dec 23, 2005
Today’s news is an important XBRL adoption milestone:
Today's 8K filing prepared and submitted by United Technologies Inc. heralds the first XBRL filing in the SEC voluntary filing program to receive an attestation performed under under AT101. AT101 was adopted by the PCAOB in May 2005 and provides guidance for auditors who are engaged to report on whether the XBRL data accurately reflects the corresponding information in the official EDGAR filings.
United Technologies 8-K
Report of Independent Registered Public Accounting Firm
PCAOB Q&A on AT101
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