The Data Quality Committee (DQC) has released its 12th ruleset for US-GAAP and IFRS filers for public review. This latest update includes five new automated checks — three for US-GAAP filers and two for IFRS filers — and an update to the negative values rule.
New GAAP Checks
The newest US-GAAP automated checks include:
- Invalid Value for Percentage Items (DQC_0091): This rule identifies any fact that is assigned a concept from the base taxonomy with a percentage item type that has a value equal to or greater than 10 (meaning 1000% or greater). This rule excludes any concepts containing “EffectiveIncomeTaxRate” in the name.
- Maturity Schedules (DQC_0094): This rule only applies to filings using the 2020 GAAP Taxonomy where the definitions of maturity concepts were changed. It is divided into two parts:
- For annual filings (10-K, 10-KT, 20-F, 40-F, and their amended versions), the rule will look at all maturity schedules and cause an error if there are any “Remainder of Period” values reported.
- For all other GAAP filings, the rule will flag any maturity schedules that include a “Remainder of Period” and “Year 2”, but no “Year 1” concept.
- Scaling for Common Stock Outstanding (DQC_0095): This rule compares the values for dei:EntityCommonStockSharesOutstanding and us-gaap:CommonStockSharesOutstanding to assure neither are incorrectly scaled.
New IFRS Checks
The newest IFRS automated checks include:
- Non Positive Items (DQC_0092): This rule checks to make sure a positive value has not been used when a negative one should have been. There are two parts to the rule:
- The first part checks that the concepts from DQC_0080 that use the SegmentConsolidationItemsAxis and EliminationOfIntersegmentAmountsMember are positive. If there are additional dimensions applied, the rule will ignore those facts.
- The second part checks that any facts using CarryingAmountAccumulatedDepreciationAmortisationAndImpairmentAndGrossCarryingAmountAxis and AccumulatedImpairmentMember, AccumulatedDepreciationAmortisationAndImpairmentMember or AccumulatedDepreciationAndAmortisationMember are negative. Additional dimensions will cause the rule to skip these facts.
- Durational Aggregation (DQC_0093): This rule checks for concepts with a duration type used across several periods that do not aggregate to the correct amounts. The check includes a “tolerance factor” to account for differences caused by rounding. This new rule would help to identify errors in scaling, negation, calculations, usage of nils vs. zeros, and inconsistent concept selection.
Existing Check Updates
The latest update also includes an update to the Negative Values check (DQC_0015). This update adds 145 concepts from the GAAP 2020 taxonomy to the listing of those checked for improper negative values.
The Data Quality Committee feedback period on the proposed rules ended June 1, 2020. The new checks should become effective within 90 days of approval, and once they have been approved, they will be integrated into the Transform platform to assure your filings are compliant with the latest guidelines.