Microsoft has submitted data to the US Securities and Exchange Commission (SEC) using a newly released taxonomy for a financial reporting.
Microsoft filed a Form 8-K, comprising financial data for shareholders, using XBRL (Extensible Business Reporting Language), an XML-based standard for financial data that's increasingly being used in Europe and the US.
Microsoft said it was the first company to submit data using a new XBRL taxonomy released on Wednesday that allows the description of data according to US Generally Accepted Accounting Principles (GAAP). The taxonomy defines, for example, what tags should be used to label data such as "net profit." Taxonomies differ between countries due to varying local laws and regulations.
The advantage of XBRL is that it is machine-readable, and computers can use the tags to pull out comparable data from different companies from their filings. It saves a person from having to read through financial reports to find specific data, as companies typically have different styles of presenting their financial data in reports.
Microsoft is one of about three dozen companies participating in a one-year pilot programme to submit reports in XBRL, according to the SEC. The SEC has run a voluntary XBRL filing programme since 2005.
Other US agencies such as the Federal Deposit Insurance Corporation are also using XBRL, saying use of the format has reduced data processing costs and made financial data available faster for analysis.
In the UK, HM Revenue and Customs, will require businesses filing tax data in XBRL by 2010. Other European XBRL projects are underway in Belgium, Denmark, Germany, Italy, the Netherlands and Spain.
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