SEC integrates XBRL cybersecurity taxonomy in latest EDGAR update

Posted on October 27, 2024 by Editor

Building on the EDGAR Next update from earlier this month, the US Securities and Exchange Commission (SEC) has announced new improvements to its EDGAR system. As of 22 October 2024, the SEC has adopted amendments to the EDGAR Filer Manual, introducing the use of XBRL for reporting cybersecurity disclosures

This update will allow companies to submit cybersecurity-related information in Inline XBRL as part of Forms 6-K, 8-K, 10-K, and 20-F, among others. As cybersecurity becomes an increasing concern, structuring these disclosures in machine-readable, transparent formats is critical, and XBRL is key to making that happen. Other important updates include the ability to add co-registrants to draft registration statements and enhanced XBRL features for security-based swap execution facilities (SBSEFs), bringing more clarity and accountability to reporting.

Cyber risks aren't exactly new, but how they're reported is evolving, and the SEC's move to integrate its cybersecurity taxonomy into XBRL filings sets a smart precedent. In an era when both regulators and investors are demanding clearer insights into corporate risk management, this added structure makes sure the most critical data doesn't slip through the cracks.

For more on these updates, explore the full SEC release here.