"This is all about bringing investors better, faster, more meaningful information about the companies they own," said SEC Chairman Christopher Cox. "It would transform financial disclosure from a 1930s form-based system to a truly 21st century model that taps the power of technology for the benefit of investors."

This proposal will now be open to public comment for 60 days to mid-July, but if accepted, and it seems unlikely that it will not be, the schedule would require companies using US GAAP with a market cap of over $5 billion (approximately the 500 largest US companies) to start using XBRL for disclosure in early 2009. Other US companies using GAAP would follow in the next two years. Companies using IFRS would report in XBRL from late 2010.

David M. Blaszkowsky, Director of the SEC's Office of Interactive Disclosure, said, "Information — meaningful, accurate, timely, easy-to-use financial reporting — always has been the driver of commerce and markets. This proposal provides the critical regulatory framework by which interactive data will make financial reporting more easily and quickly available, and help transform the relationship between filer and investor."

This decision by the SEC, and we believe it is in line with the European Commission’s plans, will put pressure on the UK’s FSA which, in late 2006, decided on using the less standardised XML language for its reporting plans.