For Energy Companies, Tagging Regulations Require a New Approach

Energy companies will soon start reporting quarterly and annual financial and operational knowledge in XBRL format to the Federal Energy Regulatory Commission (FERC). The XBRL format isn’t new for public companies which have been submitting stories with XBRL tags to the Securities and Exchange Commission (SEC) for years, but the taxonomy for tagging FERC varieties shall be completely different.
TIME TO EVALUATE YOUR OPTIONS
In many respects, the burden should be lighter for FERC filers than SEC filers. Both will depend on the XBRL 2.1 Specification (which defines the basic building blocks of XBRL implementation in enterprise reporting) and the Arelle open-source XBRL validation engine. And a “fact” in each reports is represented by a value (numeric or non-numeric), elements, date, unit, and accuracy.
But, as we detail under, you’ll notice fairly a few variations with FERC’s XBRL requirements.
SIMPLIFIED ELEMENT SELECTION
Standard schedules permit for extremely prescriptive tag assignments. That means no more tagging from scratch. For instance, the Workiva resolution for FERC reporting provides users with pre-tagged types. These standardized pre-tagged varieties not only reduce preparation efforts considerably, additionally they reduce tagging inconsistencies—you can achieve larger information quality with less effort.
Also, you aren’t required to tag every quantity. On demand to monetary statements require block tags solely. For example, if disclosure notes are pasted into FERC Form 1 from the 10-K you file with the SEC, these can be tagged with a single text block for FERC. A bonus for users of the Workiva solution for SEC reporting and the Workiva solution for FERC reporting: You will be capable of hyperlink information in your 10-K to your pre-tagged Form 1 for consistency and efficiency.
If no applicable XBRL concept is out there, the data is not to be tagged. However, if an applicable idea exists, FERC requires the data to be tagged (both numeric and nonnumeric). Note that some required info may be reported inside footnotes for schedules.
Additionally, no extensions are allowed. Besides concepts, axes and members are also to be used as offered. So, how do you report company-specific info, corresponding to officer names? In order to support reporting of company-specific info, FERC uses the typed dimension.
The bonus for Workiva users? Although FERC makes use of a unique technical specification, you will see the Workiva FERC reporting resolution provides the identical feel and appear as axis/member utility in the Workiva solution for SEC reporting.
NO OUTLINE MANAGEMENT OR CUSTOM DATES
For FERC reporting, no custom labels or label roles are wanted. Labels are auto-assigned by the official FERC renderer based mostly on form places. Also, there aren’t any calculation to define. In reality, customized calculations are not permitted. Validation rules will deal with consistency checks.
Since FERC taxonomy assigns particular hypercube to each schedule, there isn’t any define construction to construct. For customers of Workiva for FERC reporting, that is automatically managed by the Workiva platform.
Plus, fact ordering just isn’t controlled by the outline and isn’t required. FERC makes use of a numeric factor “OrderNumber” to regulate sequencing of company-specific info. Users of the Workiva solution for FERC reporting can easily assign row numbers within the form schedules as “OrderNumber” in the Workiva platform. Lastly, there are no customized dates as you’re limited to a small list of allowable values.
SUBMISSION OF DATA AS INSTANCE DOCUMENT ONLY
Going ahead, there is not a digital form to submit. Machine-readable knowledge is the key focus. Although not in iXBRL format, FERC’s official type renderer will present standardized viewing for the submitted XBRL knowledge.
SUPPORTS REQUEST FOR CONFIDENTIAL DATA
Since most submitting data to the SEC is public document, the SEC doesn’t supply this, but FERC does. Whether FERC will really approve a request for confidential knowledge is another question! If you might have an XBRL vendor for SEC reporting, make certain your vendor additionally helps FERC compliance, since the FERC taxonomy will not be the same because the SEC reporting taxonomy.
PREPARE FOR YOUR NEEDS
Whether you outsource XBRL tagging, choose an XBRL software vendor, or invest the money and time to build and maintain an in-house solution for FERC compliance, understanding the similarities and differences between XBRL filings for FERC and for the SEC might be essential when evaluating your options.
FOR MORE INFORMATION
Percy Hung is director of structured information initiatives and Peter Larison is supervisor of structured knowledge initiatives at Workiva. Workiva, Inc. is a world software-as-a-service company. It supplies a cloud-based linked and reporting compliance platform that permits using related data and automation of reporting throughout finance, accounting, danger, and compliance. For extra data, visit www.workiva.com
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