For Energy Companies, Tagging Regulations Require a New Approach

Energy companies will soon begin reporting quarterly and annual financial and operational data in XBRL format to the Federal Energy Regulatory Commission (FERC). Professional isn’t new for public firms that have been submitting reviews with XBRL tags to the Securities and Exchange Commission (SEC) for years, but the taxonomy for tagging FERC varieties might 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 building blocks of XBRL implementation in enterprise reporting) and the Arelle open-source XBRL validation engine. And a “fact” in both reviews is represented by a value (numeric or non-numeric), elements, date, unit, and accuracy.
But, as we detail beneath, you’ll discover quite a few variations 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 supplies customers with pre-tagged varieties. These standardized pre-tagged forms not only scale back preparation efforts significantly, additionally they decrease tagging inconsistencies—you can achieve larger knowledge high quality with less effort.
Also, you are not required to tag each quantity. Notes to financial 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, those can be tagged with a single text block for FERC. A bonus for customers of the Workiva answer for SEC reporting and the Workiva solution for FERC reporting: You will be capable of hyperlink info in your 10-K to your pre-tagged Form 1 for consistency and efficiency.
If no relevant XBRL idea is out there, the information is to not be tagged. However, if an relevant concept exists, FERC requires the data to be tagged (both numeric and nonnumeric). Note that some required information could additionally be reported inside footnotes for schedules.
Additionally, no extensions are allowed. Besides ideas, axes and members are also for use as offered. So, how do you report company-specific info, similar to officer names? In order to help reporting of company-specific info, FERC makes use of the typed dimension.
The bonus for Workiva users? Although FERC makes use of a different technical specification, you will notice the Workiva FERC reporting solution offers the same appear and feel as axis/member software in the Workiva answer 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 on kind locations. Also, there are no calculation to define. In truth, custom calculations are not permitted. Validation rules will deal with consistency checks.
Since FERC taxonomy assigns specific hypercube to each schedule, there is not a outline structure to build. For users of Workiva for FERC reporting, that is automatically managed by the Workiva platform.
Plus, fact ordering isn’t managed by the define and isn’t required. FERC makes use of a numeric element “OrderNumber” to regulate sequencing of company-specific info. Users of the Workiva answer 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 record of allowable values.
SUBMISSION OF DATA AS INSTANCE DOCUMENT ONLY
Going ahead, there is no digital type to submit. Machine-readable data is the key focus. Although not in iXBRL format, FERC’s official form renderer will provide standardized viewing for the submitted XBRL knowledge.
SUPPORTS REQUEST FOR CONFIDENTIAL DATA
Since most submitting knowledge to the SEC is public record, the SEC doesn’t supply this, however FERC does. Whether FERC will truly approve a request for confidential data is another question! If you could have an XBRL vendor for SEC reporting, make certain your vendor additionally supports FERC compliance, because the FERC taxonomy is not going to be the same as the SEC reporting taxonomy.
PREPARE FOR YOUR NEEDS
Whether you outsource XBRL tagging, select an XBRL software program vendor, or invest the money and time to construct and maintain an in-house solution for FERC compliance, understanding the similarities and variations between XBRL filings for FERC and for the SEC might be crucial when evaluating your choices.
FOR MORE INFORMATION
Percy Hung is director of structured information initiatives and Peter Larison is supervisor of structured data initiatives at Workiva. Workiva, Inc. is a global software-as-a-service company. It provides a cloud-based connected and reporting compliance platform that allows using connected data and automation of reporting across finance, accounting, risk, and compliance. For more info, go to www.workiva.com
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