Following a three-year extension that allowed Form 11-K filers time to prepare for implementation, the amended SEC rule finalized in 2022 becomes effective on July 11, 2025. The amendment supports the SEC’s broader efforts to modernize required filings and improves accessibility to publicly filed submissions by providing filings in an easily searchable format.
How Does Taxonomy Implementation Affect Form 11-K Filers?
For all Forms 11-K filed on July 11, 2025, and later, the SEC will require filers to tag certain data and footnotes using Inline eXtensible Business Reporting Language (XBRL). Filers will embed XBRL tags directly into their Form 11-K before filing, providing both human-readable and machine-readable data. XBRL tags will improve the efficiency of SEC database searches because users — including filers, investors, analysts, and regulators — will be able to search for detail-specific tags.
XBRL tagging was unavailable to Form 11-K filers until 2024, although other filers have been required to use similar tagging systems for some time. Implementing the new taxonomy rule should be relatively straightforward for users as the SEC has integrated the tagging system into its platform. However, it is crucial for entities required to file Form 11-K to be aware of the mandate and ensure compliance by July 11, 2025.
Is Assistance Available?
To assist filers in navigating this transition, the Financial Accounting Standards Board (FASB) has released the Proposed GAAP Taxonomy Implementation Guide. This comprehensive resource includes examples and insights into various scenarios that filers may encounter, serving as an invaluable tool for learning how to implement the new tagging requirements.
As the 2025 deadline approaches, it is essential for Form 11-K filers to familiarize themselves with the new Inline XBRL requirements and take the necessary steps to ensure compliance with regulatory obligations.
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