SEC reminds filers to avoid custom tags for credit losses
During a recent review, the US Securities and Exchange Commission (SEC) staff in the Division of Economic and Risk Analysis found some issues with how companies are tagging provisions for credit losses on their income statements.
The assessment, which focused on Forms 10-K and 10-Q, found that some filers are using custom tags unnecessarily for this section, reducing the comparability of financial data. Specifically, the SEC observed filers using custom tags for credit losses on unfunded commitments, despite the availability of a standard element.
Similarly, some filers created custom tags for total provision for credit losses, which should also be tagged with the appropriate standard element.
Using custom tags when standard XBRL elements are available undermines the comparability and usability of financial data. The SEC encourages filers to review their tagging practices and ensure they use the appropriate standard elements to maintain high-quality data.
Read more here, and for a refresh on data quality best practice, take a look at SEC’s guidance here.
