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For Energy Companies, Tagging Regulations Require a New Approach

Energy corporations will quickly begin reporting quarterly and annual monetary and operational data in XBRL format to the Federal Energy Regulatory Commission (FERC). diaphragm seal isn’t new for public corporations that have been submitting stories with XBRL tags to the Securities and Exchange Commission (SEC) for years, but the taxonomy for tagging FERC forms might be totally different.
TIME TO EVALUATE YOUR OPTIONS

In many respects, the burden ought to be lighter for FERC filers than SEC filers. เพรสเชอร์เกจ will rely on the XBRL 2.1 Specification (which defines the fundamental constructing blocks of XBRL implementation in business reporting) and the Arelle open-source XBRL validation engine. And a “fact” in both reviews is represented by a price (numeric or non-numeric), elements, date, unit, and accuracy.
But, as we detail beneath, you’ll notice quite a couple of variations with FERC’s XBRL requirements.
SIMPLIFIED ELEMENT SELECTION

Standard schedules enable for extremely prescriptive tag assignments. That means no more tagging from scratch. For example, the Workiva answer for FERC reporting offers customers with pre-tagged forms. These standardized pre-tagged types not solely scale back preparation efforts significantly, in addition they decrease tagging inconsistencies—you can obtain larger knowledge high quality with much less effort.
Also, you are not required to tag each number. Notes to financial statements require block tags solely. For instance, if disclosure notes are pasted into FERC Form 1 from the 10-K you file with the SEC, these would be tagged with a single text block for FERC. A bonus for users of the Workiva solution for SEC reporting and the Workiva resolution for FERC reporting: You will have the power to hyperlink data in your 10-K to your pre-tagged Form 1 for consistency and effectivity.
If no applicable XBRL idea is on the market, the information is to not be tagged. However, if an relevant idea exists, FERC requires the knowledge to be tagged (both numeric and nonnumeric). Note that some required info could also be reported inside footnotes for schedules.
Additionally, no extensions are allowed. Besides ideas, axes and members are additionally to be used as provided. So, how do you report company-specific information, similar to 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 unique technical specification, you will notice the Workiva FERC reporting solution presents the same look and feel as axis/member application in the Workiva resolution for SEC reporting.
NO OUTLINE MANAGEMENT OR CUSTOM DATES

For FERC reporting, no custom labels or label roles are needed. Labels are auto-assigned by the official FERC renderer primarily based on kind places. Also, there are no calculation to outline. In fact, customized calculations usually are not permitted. Validation guidelines will handle consistency checks.
Since FERC taxonomy assigns specific hypercube to each schedule, there isn’t a define construction to construct. For users of Workiva for FERC reporting, this is automatically managed by the Workiva platform.
Plus, truth ordering isn’t controlled by the define and is not required. FERC makes use of a numeric element “OrderNumber” to control sequencing of company-specific data. Users of the Workiva solution for FERC reporting can simply assign row numbers within the kind schedules as “OrderNumber” in the Workiva platform. Lastly, there are no customized dates as you’re limited to a small listing of allowable values.
SUBMISSION OF DATA AS INSTANCE DOCUMENT ONLY

Going forward, there isn’t a digital form to submit. Machine-readable data is the key focus. Although not in iXBRL format, FERC’s official kind renderer will present standardized viewing for the submitted XBRL knowledge.
SUPPORTS REQUEST FOR CONFIDENTIAL DATA

Since most filing knowledge to the SEC is public document, the SEC doesn’t supply this, but FERC does. Whether FERC will truly approve a request for confidential data is one other question! If you have an XBRL vendor for SEC reporting, make certain your vendor also helps FERC compliance, for the explanation that FERC taxonomy is not going to be the same because the SEC reporting taxonomy.
PREPARE FOR YOUR NEEDS

Whether you outsource XBRL tagging, choose an XBRL software vendor, or make investments the money and time 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 might be crucial when evaluating your options.
FOR MORE INFORMATION

Percy Hung is director of structured knowledge initiatives and Peter Larison is supervisor of structured data initiatives at Workiva. Workiva, Inc. is a global software-as-a-service firm. It provides a cloud-based linked and reporting compliance platform that enables using related data and automation of reporting throughout finance, accounting, risk, and compliance. For more information, visit www.workiva.com

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