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TechTalk Blog - Regulators Crack Down on Companies That Don't Use Technology for Compliance Reporting - XBRL Expands to Internal Use

By David Colgren posted 11-16-2015 12:12 PM

  

According to InvestmentNews -- regulators such as the Securities and Exchange Commission (US SEC) and the Financial Industry Regulatory Authority (FINRA) are cracking down on companies that fail to incorporate and use technology to stay in compliance with regulatory mandates. Citigroup recently agreed to pay a $15 million penalty for failing to enforce compliance breaches that technology could have prevented.

Using manual tools like spreadsheets can’t work to monitor and track regulatory risks according InvestmentNews. The IMA supports to use of using machine-readable formats like XBRL to enhances transparency and accountability of disclosed regulatory reports to help both regulators and investors.  XBRL can also be used for internal reporting and efforts are underway using XBRL for the General Ledger of companies.

Fujitsu, the world’s fifth-largest IT company is using XBRL for internal reporting and has the following case study discussing its benefits and use in the organization world-wide for internal reporting.

"Today's high-speed markets require that broker-dealers and investment advisers manage the convergence of technology and compliance," Andrew Ceresney, director of the Securities and Exchange Commission's Division of Enforcement.

Stay tuned for more updates on XBRL and how it adoption and use in the capital markets will help the management accountant.



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