SEC Resource Extraction Payment New Rule
SEC implemented a new rule impacting resource extraction issuers (issuers engaged in the commercial development, including exploration, extraction, processing, export, license acquisition, or other significant actions, of oil, natural gas, or minerals) that have made payments to governmental agencies, either foreign or domestic, for commercial development of oil, natural gas or minerals. Under this rule, these issuers will be required to submit their payment details in an exhibit to a Form SD filing, and that exhibit must be in XBRL.
With some exceptions for smaller reporting companies, emerging growth companies, and those issuers subject to an accepted alternative reporting regime (currently the EU Directives, the UK Report on Payments to Governments Reg. 2014, Norway’s Regulations on Country-by-Country Reporting, and Canada’s ESTMA), these payment details would be expected to include:
- The total amount of payments, by category,
- The currency used for the payment,
- The period of the payments,
- The business segment that made the payments,
- The government agency that received the payments and the country where that agency is located,
- The project that the payments were related to.
Timeline:
- Rule was effective March 16, 2021
- Includes a 2-year transition period
- Initial filings are due 270 days after end of most recently completed fiscal year
- 12/31 fiscal year, first filings would be due 9/26/2024
Here are a few links to SEC resources available if you wish to learn more:
We are here to help
Should you need help with this new resource extraction tagging requirement, the Workiva Professional Services team is available for any of your tagging needs. Please don't hesitate to reach out to your Account Rep, CSM or PSM.
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