For Energy Companies, Tagging Regulations Require a New Approach

Energy firms will soon start reporting quarterly and annual financial and operational data in XBRL format to the Federal Energy Regulatory Commission (FERC). The XBRL format isn’t new for public corporations that have been submitting reviews with XBRL tags to the Securities and Exchange Commission (SEC) for years, but the taxonomy for tagging FERC forms will be totally different.
TIME TO EVALUATE YOUR OPTIONS
In many respects, the burden ought to be lighter for FERC filers than SEC filers. Both will rely on the XBRL 2.1 Specification (which defines the essential constructing blocks of XBRL implementation in business reporting) and the Arelle open-source XBRL validation engine. And a “fact” in each stories is represented by a price (numeric or non-numeric), parts, date, unit, and accuracy.
But, as ราคาpressuregauge detail beneath, you’ll discover quite a couple of differences with FERC’s XBRL necessities.
SIMPLIFIED ELEMENT SELECTION
Standard schedules enable for highly prescriptive tag assignments. That means no extra tagging from scratch. For example, the Workiva solution for FERC reporting provides users with pre-tagged varieties. These standardized pre-tagged types not only cut back preparation efforts considerably, additionally they minimize tagging inconsistencies—you can obtain larger knowledge high quality with much less effort.
Also, you aren’t required to tag every quantity. Notes to financial statements require block tags only. For example, if disclosure notes are pasted into FERC Form 1 from the 10-K you file with the SEC, those could be tagged with a single textual content block for FERC. A bonus for customers of the Workiva resolution for SEC reporting and the Workiva resolution for FERC reporting: You will be succesful of link info in your 10-K to your pre-tagged Form 1 for consistency and efficiency.
If no relevant XBRL idea is available, the knowledge is to not be tagged. However, if an relevant idea exists, FERC requires the data to be tagged (both numeric and nonnumeric). Note that some required info may be reported within footnotes for schedules.
Additionally, no extensions are allowed. Besides ideas, axes and members are also to be used as provided. So, how do you report company-specific info, such as officer names? In order to help reporting of company-specific information, FERC uses the typed dimension.
The bonus for Workiva users? Although FERC makes use of a different technical specification, you will note the Workiva FERC reporting answer provides the same feel and appear as axis/member software within the Workiva solution for SEC reporting.
NO OUTLINE MANAGEMENT OR CUSTOM DATES
For FERC reporting, no customized labels or label roles are needed. Labels are auto-assigned by the official FERC renderer based on type places. Also, there are no calculation to outline. In truth, custom calculations usually are not permitted. Validation rules will handle consistency checks.
Since FERC taxonomy assigns specific hypercube to every schedule, there is no outline structure to construct. For customers of Workiva for FERC reporting, that is automatically managed by the Workiva platform.
Plus, truth ordering isn’t controlled by the define and isn’t required. FERC uses a numeric factor “OrderNumber” to manage sequencing of company-specific data. Users of the Workiva solution for FERC reporting can easily assign row numbers within the type schedules as “OrderNumber” in the Workiva platform. Lastly, there are no custom dates as you’re restricted to a small record of allowable values.
SUBMISSION OF DATA AS INSTANCE DOCUMENT ONLY
Going forward, there is no digital kind to submit. Machine-readable information is the important thing focus. Although not in iXBRL format, FERC’s official type renderer will provide standardized viewing for the submitted XBRL data.
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 truly approve a request for confidential knowledge is one other question! If you have an XBRL vendor for SEC reporting, make certain your vendor additionally supports FERC compliance, because the FERC taxonomy won’t be the same because the SEC reporting taxonomy.
PREPARE FOR YOUR NEEDS
Whether you outsource XBRL tagging, choose an XBRL software program vendor, or invest the time and money to build and keep an in-house solution for FERC compliance, understanding the similarities and variations between XBRL filings for FERC and for the SEC shall be essential when evaluating your choices.
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 global software-as-a-service firm. It provides a cloud-based connected and reporting compliance platform that allows using connected information and automation of reporting across finance, accounting, risk, and compliance. For extra info, go to www.workiva.com
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