Why does the Data Transparency Coalition support the adoption of consistent data formats, such as XBRL, throughout regulatory reporting? If regulatory agencies standardized the information they collect, software could automate reporting, replacing layers of lawyers with lines of code – and the cost of compliance would drop.
This is not science fiction. It’s already happening in the Netherlands, where, through the Standard Business Reporting program, the Dutch tax authority, lead business regulator, and statistical agency have adopted consistent data formats across their different reporting regimes. This means Dutch companies can comply with tax, business, and statistical reporting requirements automatically and electronically, using the same data.
We are grateful to the Dutch Tax and Customs Administration for permission to republish a speech by Rob Kuipers, Standard Business Reporting Commissioner of the Netherlands, delivered on September 8, 2015, at XBRL International in Copenhagen, Denmark. Mr. Kuipers’ speech explains how consistent data formats can dramatically reduce the cost of compliance for business and the cost of administration for government.
This is why we’re calling on Congress to pass the Financial Transparency Act to standardize financial regulatory reporting – and, in the future – similar reforms in other areas of regulation.
To read full speech by Commissioner Kuipers, click here.