How to boost trust in digital reporting with XBRL’s new digital signatures standard

Posted on October 11, 2024 by Editor

If you haven't had a chance to check out our recent blog on digital signatures yet, it's worth a read. Our CEO, John Turner, discusses the increasingly critical issue of trust in corporate reporting and how we're tackling it with a new global standard for digital signatures.

With the world rapidly shifting to digital reporting, and widespread adoption of iXBRL, ensuring the integrity and authenticity of reports is no longer a nice-to-have; it's essential.

John lays out a problem we all recognise but may not talk about enough: there's often no airtight way to prove that the financial report you're reviewing hasn't been tampered with, or that it was truly signed by the right person. Cyber threats are evolving, and while fraud may not happen every day, when it does, it can be catastrophic. That's where digital signatures come in. They provide a verifiable link between a report and its signatory, ensuring the data remains untouched and the signature authentic.

Our Digital Signatures in XBRL Working Group (D6WG) has been working behind the scenes to finalise a new standard that brings this into reality. The approach is simple yet powerful: apply digital signatures to XBRL reports in a way that guarantees security and transparency. This isn't just theoretical, imagine how much market damage could have been avoided in cases of financial fraud if these safeguards had been in place. Digital signatures would have shut that down before the ink even dried (well, digitally speaking).

One of the standout features of this new standard is its flexibility. It allows for multiple signatures at different levels of a report. This isn't just about ticking a box; it's about accountability. For example, the CEO can sign off on the entire report, while the CFO and auditors sign off on their respective sections. It's not only transparent but ensures everyone's responsibility is crystal clear.

So, whether you're a regulator, an investor, or part of the reporting ecosystem, this is something you'll want to follow closely. For all the details and to see how digital signatures are set to reshape corporate reporting, read the full blog.