For Energy Companies, Tagging Regulations Require a New Approach

Energy firms will quickly start reporting quarterly and annual monetary and operational information in XBRL format to the Federal Energy Regulatory Commission (FERC). The XBRL format isn’t new for public corporations which were submitting reviews with XBRL tags to the Securities and Exchange Commission (SEC) for years, but the taxonomy for tagging FERC types shall be completely different.
TIME TO EVALUATE YOUR OPTIONS
In many respects, the burden must be lighter for FERC filers than SEC filers. Both will depend on the XBRL 2.1 Specification (which defines the fundamental building blocks of XBRL implementation in enterprise reporting) and the Arelle open-source XBRL validation engine. And a “fact” in each reviews is represented by a price (numeric or non-numeric), elements, date, unit, and accuracy.
But, as we detail beneath, you’ll discover fairly a few differences with FERC’s XBRL necessities.
SIMPLIFIED ELEMENT SELECTION
Standard schedules permit for highly prescriptive tag assignments. That means no extra tagging from scratch. For example, the Workiva answer for FERC reporting supplies users with pre-tagged types. These standardized pre-tagged forms not only cut back preparation efforts significantly, additionally they reduce tagging inconsistencies—you can achieve higher data high quality with less effort.
Also, you aren’t required to tag every number. Notes to financial statements require block tags only. For example, if disclosure notes are pasted into FERC Form 1 from the 10-K you file with the SEC, those could be tagged with a single text block for FERC. A bonus for users of the Workiva solution for SEC reporting and the Workiva solution for FERC reporting: You will have the power to link data in your 10-K to your pre-tagged Form 1 for consistency and efficiency.
If no applicable XBRL idea is out there, the information is to not be tagged. However, if an relevant concept exists, FERC requires the data to be tagged (both numeric and nonnumeric). Note that some required info may be reported inside footnotes for schedules.
Additionally, no extensions are allowed. Besides concepts, axes and members are additionally to be used as offered. So, how do you report company-specific info, such as officer names? In order to support reporting of company-specific info, FERC makes use of the typed dimension.
The bonus for Workiva users? Although FERC uses a unique technical specification, you will see the Workiva FERC reporting solution offers the identical appear and feel as axis/member utility within the Workiva solution for SEC reporting.
NO OUTLINE MANAGEMENT OR CUSTOM DATES
For FERC reporting, no custom labels or label roles are wanted. เกจวัดแรงดันเบนซิน are auto-assigned by the official FERC renderer primarily based on form places. Also, there are not any calculation to define. In fact, custom calculations aren’t permitted. Validation guidelines will deal with consistency checks.
Since FERC taxonomy assigns specific hypercube to each schedule, there is no outline structure to build. For users of Workiva for FERC reporting, this is mechanically managed by the Workiva platform.
Plus, truth ordering isn’t controlled by the outline and is not required. FERC uses a numeric element “OrderNumber” to manage sequencing of company-specific info. Users of the Workiva solution for FERC reporting can simply assign row numbers in the type schedules as “OrderNumber” within the Workiva platform. Lastly, there aren’t any customized dates as you’re restricted to a small listing of allowable values.
SUBMISSION OF DATA AS INSTANCE DOCUMENT ONLY
Going forward, there is not any digital form to submit. Machine-readable data is the vital thing focus. Although not in iXBRL format, FERC’s official type renderer will present standardized viewing for the submitted XBRL data.
SUPPORTS REQUEST FOR CONFIDENTIAL DATA
Since most filing data to the SEC is public record, the SEC doesn’t supply this, but FERC does. Whether FERC will truly approve a request for confidential knowledge is another question! If you may have an XBRL vendor for SEC reporting, make sure your vendor additionally supports FERC compliance, for the reason that FERC taxonomy will not be the identical because the SEC reporting taxonomy.
PREPARE FOR YOUR NEEDS
Whether you outsource XBRL tagging, select an XBRL software vendor, or make investments the money and time to construct and keep an in-house resolution for FERC compliance, understanding the similarities and differences between XBRL filings for FERC and for the SEC might be crucial when evaluating your choices.
FOR MORE INFORMATION
Percy Hung is director of structured information initiatives and Peter Larison is manager of structured data initiatives at Workiva. Workiva, Inc. is a worldwide software-as-a-service company. It offers a cloud-based linked and reporting compliance platform that enables the use of connected information and automation of reporting throughout finance, accounting, threat, and compliance. For more info, go to www.workiva.com
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