The SEC, Madoff and XBRL

You probably have never heard of XBRL. If you havent, and you are the least bit interested in how regulatory agencies can avoid future Madoff  like events, and in government transparency for our bailout tax dollars, you should take a minute to get up to speed on what XBRL can do.

XBRL is a version of XML for financial reporting. To the SEC’s credit, they have become a big proponent, requiring $5 Billion Market Cap companies to start reporting using XBRL as of this past June, with the next 1800 in market size required in 2009, and everyone else in 2010.  The value of XBRL is that by creating standardized tags for data elements (ie, net income , cash, interest, etc), companies will not only have to conform their financial statement line items to the defined tags, but in doing so it will make it much easier for investors and regulators alike to analyze and compare the financials of various companies. All good so far.

Here comes the but..  read the rest of this Mark Cuban post here

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