Financial statements tagged using XBRL opens up opportunities for data users to automatically access detailed, filer-supplied data. The machine-readable format creates efficiencies and cost-savings for users to use the data to gain better insights and make more informed decisions.
Technology Is the Key Component to Reshape Financial Data Analysis
XBRL data, in and of itself, provides structure to previously unstructured data. As Wes Bricker, PwC's Vice Chair and Assurance Leader for the US and Mexico, and XBRL International Board Director indicated in this podcast, XBRL data reflect the details as reported in the company's financials. XBRL-tagged data does not change a company's story; rather, it enables the stories to be understood at scale.
At idaciti, we have always believed that XBRL is just one piece of the puzzle for making data interactive. The other important part of the puzzle would be the technology and applications that interact and make the structured data come alive. We have focused on XBRL data quality and simultaneously building a technology infrastructure that leverages machine learning to automate the XBRL data consumption. The intuitive, user-friendly applications can help users analyze the data at scale and easily connect the dots to gain new insights.
Structured Earnings Releases and ESG Reports
XBRL-tagged financial reports is just the beginning. Naturally, we haven't stopped there. The investment community's calls to require that earnings releases and ESG disclosures be tagged have not gone unnoticed at idaciti. We stand on the shoulders of giants like Christopher Cox (former SEC Commissioner who saw the promise of interactive data), and have built on the XBRL foundation that Commissioner Cox set in place back in the mid-2000s.
idaciti has leveraged the XBRL framework to structure currently unstructured data.
While these highly sought-after company disclosures are not required by the SEC to be tagged in XBRL, using a combination of machine learnings techniques and the rich metadata of existing XBRL tags, we have created algorithms to auto-tag the earnings releases. We are also collaborating with industry leaders in making significant advances in structuring ESG data.
Has the promise of the interactive data been fulfilled? We believe so - at least to certain degrees. But there is still progress to be made. When combined with user-intuitive applications and data analytics technology, XBRL data is allowed to shine and bask in its current glory, and the encore is awaiting us. The interactive data movement doesn't stop at 10-Ks and 10-Qs -- the whole world of ESG disclosures, earnings releases, proxy statements, and other non-GAAP disclosures is a goldmine waiting to be tapped. And we're excited about the opportunity to harvest all the benefits XBRL can offer for our customers.
Join Us and Learn How Analysts Are Using XBRL Data in Their Investment Process
idaciti invites you to join investors, analysts, and traders at the XBRL US Investor Forum: Ready for Anything – Using Data in Perilous Times, Nov 17-18. This free virtual forum is sponsored by CFA Society New York and CFA Institute, featuring speakers including SEC Commissioner Allison Herren Lee alongside PwC Vice Chair Wes Bricker.
Christine Tan, idaciti's Chief Research Officer will demonstrate the idaciti analytical platform and share case studies on how machine-readable structured data enables investors and analysts to take more innovative approaches to analysis and gain greater insights.