XBRL US pushes for a unified approach to data standards in FDTA rule proposal

Posted on October 27, 2024 by Editor

XBRL US has submitted a comment letter on the Financial Data Transparency Act (FDTA) rule proposal.

The FDTA aims to modernise how US agencies gather and share data, but XBRL US warns that the "properties-based approach" currently being contemplated could lead to fragmented, non-comparable data, making things trickier for everyone involved.

Last week, XBRL US highlighted the Act's potential to revolutionise data quality. Now, they're doubling down on that message, emphasising that a consistent data standard like XBRL is the key to unlocking those benefits. Without it, agencies could end up building costly, siloed systems that fail to deliver the interoperability needed. By adopting XBRL, they argue, regulators can streamline processes, reduce costs, and deliver better data for businesses, investors, and policymakers. It's a win-win, really.

Here at XBRL International we also submitted our own comment to the SEC to expand some of the themes. In our letter, we highlighted why XBRL is vital to making the FDTA a success. It's not just about ticking regulatory boxes, but ensuring that data works more efficiently and transparently. With over 200 global implementations, we've seen how XBRL turns complex information into clear, actionable insights that benefit everyone from regulators to businesses and investors.

We also stressed that, as AI continues to evolve and cybersecurity risks grow, structured, reliable data is becoming indispensable. By embedding XBRL into the FDTA framework, regulators can build a solid foundation for the future, saving time, reducing costs, and improving data quality.

For more insights, read XBRL International's full letter here. You can also revisit XBRL US' comment letter, which raises complementary points, here.