XBRL Extension for Construction, Energy and Transportation
The XBRL working group meetings are made up of stakeholders and indusrty experts that get together to discuss how XBRL-CET can be developed so that is potential is realized.
The working group sessions are designed educate public agencies and other stakeholders on the recently passed DATA Act, how compliance will impact all public agencies that receive any federal funding, and just as important, how compliance can be undertaken in such a way as to improve access to opportunities for small business, particularly SBE, LBE, SDVBE and WBE.
With the DATA Act every public agency, and the contractors/vendors that work with them, will need to develop a strategy for how they will comply by 2017, which creates a “fork in road” and compels action to be taken.
XBRL-CET is an effort to influence the direction of system and application development towards cost effective open standards and interoperability that promote competition and enable efficiency, and away from mandated costly proprietary systems that create redundancy, inefficiencies and constrains innovation.
While large companies can absorb extra costs that come from inefficiency, and financial services can be provided to larger companies regardless because they generate enough revenue, the small companies suffer greatly from the excess administrative burden. With limited revenue to offer small companies often have difficulty securing financial services and products, particularly when the cost of providing services exceeds the income to the financial service provider.
The objective is to address the skepticism that universally adopted data standards can be achieved cost effectively, and that efforts like standardized financial reporting to the SEC and the mandate imposed by the DATA Act will fail to deliver on their promise and represent yet another example of good intentions gone wrong, with scope creep, delays and cost overruns leaving those that invested time and resources with an abandoned project and heavy losses that cannot be recovered.
The resistance to implementation and adoption of data standards caused from these perceptions is understandable, and given the history and financial impact of prior miscalculations is justified.
To overcome the prudent resistance to investing time and resource into standards there must be a compelling reason to believe that the probability of success, universal adoption, is almost certain, and the potential cost of delay in both catch up expense and lost market share is too high, and likely.
XBRL, while developed for the largest companies, and designed for financial reporting on the most complicated large capital infrastructure projects, can be utilized to create efficiencies and costs savings that have the greatest impact on the smallest company and can enable innovation where otherwise the excess burden would have prevented small companies from participating.
XBRL is a non-commercial open standard established by federal legation for publicly traded companies to utilize for financial reporting to the Securities and Exchange Commission. The goal of the working group sessions are to outline how the national asset/resource of XBRL can be expanded to include Construction, Energy and Transportation (XBRL-CET) so that system administrators can comply with the DATA Act, learn new ways to innovate by utilizing the potential XBRL enables, and help small business at the same time.
There is a fork in the road, and we must take it.