US GAAP Disclosure Analysis (Prototype): Nature of Business, Basis of Reporting, Significant Accounting Policies, Revenues Recognition

To the left is a list of reporting entities who have provided a specific disclosure in their XBRL-based digital financial report. Click on the name of the entity and the disclosure will show up on the right. For more information please concact CharlesHoffman@olywa.net or go to http://xbrl.squarespace.com/journal/2014/12/21/understanding-primary-cause-of-errors-in-public-company-sec.html.

Nature of Business, Basis of Reporting, Significant Accounting Policies, Consolidation Policy, Revenue Recognition Policy

There are four disclosures that every public company reporting to the SEC must make: Nature of business, basis of reporting, significant accounting policies, and revenue recognition policy. If the reporting entity is consolidated (which most are), then a consolidation policy is also required. In the graphic below which shows a matrix see those disclosures listed across the top in columns. The US GAAP XBRL Taxonomy provides concepts for public companies to report that information. See those concepts listed in rows numbered 1 through 11 in the graphic below. The followings are definitions/documentation for those concepts (rows 1 to 5 in the matrix):

• Nature of Operations [Text Block]: The entire disclosure for the nature of an entity's business, major products or services, principal markets including location, and the relative importance of its operations in each business and the basis for the determination, including but not limited to, assets, revenues, or earnings.
• Basis of Accounting [Text Block]: The entire disclosure for the basis of accounting, or basis of presentation, used to prepare the financial statements.
• Consolidation, Policy [Policy Text Block]: Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests in other entities.
• Significant Accounting Policies [Text Block]: The entire disclosure for all significant accounting policies of the reporting entity.
• Revenue Recognition, Policy [Policy Text Block]: Disclosure of accounting policy for revenue recognition.

In addition, the US GAAP XBRL Taxonomy combines the individual disclosures into combined "sets". For example, here are a handful of those sets including their definitions/documentation: (rows 6 to 11 in the matrix)

• Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]: The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity.
• Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]: The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.
• Basis of Presentation and Significant Accounting Policies [Text Block]: The entire disclosure for the basis of presentation and significant accounting policies concepts.
• Business Description and Basis of Presentation [Text Block]: The entire disclosure for the business description and basis of presentation concepts.
• Business Description and Accounting Policies [Text Block]: The entire disclosure for the business description and accounting policies concepts.

Rows 13 to 16 show some of the extensions reporting entities create:

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