Most companies, whether large or small, currently outsource the tagging of their financial filings into the interactive XBRL format. But in-house solutions are becoming more attractive, in part because the two-year liability grace period is winding down. During the limited liability period that covers the first two years in which companies tag their financial filings, the Securities and Exchange Commission alerts companies to errors that need fixing. Once that period ends, errors will mean restating the company’s financials.
“That’s big, because restatements can end up on the front page of the Wall Street Journal,” says William Sinnett, research director at Financial Executives International (FEI).