AICPA welcomes SEC proposed rule on use of XBRL in commission filings, encourages public companies to adopt XBRL.

In response to recent actions by the Securities and Exchange Commission on XBRL-tagged data in commission filings (The CPA Letter, Sept.), the AICPA believes this is an ideal time for companies to embrace the XBRL (Extensible Business Reporting Language; www.xbrl.org) standard as an important step in helping to enhance and modernize financial reporting. The SEC is proposing that fliers to the EDGAR system tag individual facts and figures in their financial statements using XBRL in a voluntary filing program to begin in 2005 and is also seeking public comment on alternative reporting methods and the costs and benefits associated with XBRL-tagged data.

"XBRL benefits the entire business reporting value chain, including the companies that prepare financial reports, as well as the capital markets and investors who rely on and use this information. In addition, XBRL improves the timeliness of financial information and accuracy of data in SEC filings," said Barry Melancon, President and CEO of the AICPA, the founding member of the XBRL initiative. "We urge public companies to consider the benefits of XBRL and adopt it as part of their reporting processes."

For AICPA members who serve in financial management, auditing and information technology roles, XBRL will streamline the preparation of business and financial reports for internal and external decision making. XBRL will significantly improve the ability for CPAs in financial management to more precisely direct and publish financial information to investors, regulators, analysts, lenders and other key stakeholders.

Moreover, the CPA profession is proactively fulfilling its primary mission to protect the public interest as XBRL will improve investor access to the capital markets and increase analyst coverage.