On July 2, 2021 the Data Quality Committee (DQC) updated their rule plug-in tool for the latest set, round 15, of data quality validation rules. The effective date of adoption for this release for filings submitted as of September 1, 2021. The latest set of the Data Quality Committee’s (DQC) validation rules are now available in Workiva. Round 15 includes nine new rules and updates to four existing rules.
General Text Block
- The rule identifies where the text block “Schedule Of Acquired Finite Lived Intangible Assets By Major Class Text Block” is used with a value on the Business Acquisition Axis.
Fact Value Consistency Over Time
- The rule identifies those facts that are only expected to grow over a reporting period.
- This rule is intended to identify those cases where the value of a monetary fact has a larger value reported than the value reported for another fact that represents the same concept, but over a longer duration of time.
- The rule also identifies any elements that cannot be negative but may increase or decrease over a measurement period.
- The rule excludes the following elements that meet this category, CapitalExpendituresIncurredButNotYetPaid and ConstructionInProgressExpendituresIncurredButNotYetPaid.
- This rule consists of a number of parts that check concentration risks are reported correctly. All of the parts use the line item ConcentrationRiskPercentage1.
- The correct reporting of concentration risk requires use of multiple dimensions. The Concentration Risk by Benchmark Axis and Concentration Risk by Type Axis are required for all disclosures. A third axis (e.g., Major Customers Axis or Statement Geographical Axis) may be used to further disaggregate the data.
Missing Business Acquisition Axis (Short Period)
- This rule identifies where the company has reported the details of a specific acquisition but has not identified the actual acquisition.
- It also identifies those cases where the aggregate consideration transferred for the reporting period has not been reported using appropriate dates.
- This rule will flag errors for those cases where the company has not used the Business Acquisition Axis.
- The rule looks for those cases where the element BusinessCombinationConsiderationTransferred1 has been used with no dimensions but has been reported with a duration period less than the reporting period by 20 days.
Line Items Requiring the Business Acquisition Axis
- This rule is intended to identify those cases where the company reports facts that are expected to include the business acquisition axis.
- The rule checks a list of line item concepts are reported with the business acquisition axis and a member representing the actual acquisition.
Gross Acquisition Less Than Net Acquisition
- This rule ensures that filers use the correct elements to identify the Gross Payments and the Net Payments for business acquisitions.
- This rule is intended to identify those cases where the company reports the total “Payments To Acquire Businesses Gross” with an amount that is less than the value of “Payments To Acquire Businesses Net Of Cash Acquired”.
Assets Acquired Net of Goodwill
- This rule is intended to identify those cases where the company reports the values of Assets acquired and liabilities assumed excluding goodwill, the value of assets acquired and liabilities assumed including goodwill and the value of goodwill.
- The rule flags an error when the value net of goodwill plus goodwill does not equal the amount including goodwill. This rule will only run on those facts that use the BusinessAcquisitionAxis.
Fact Value Consistency Over Time (IFRS)
- This rule ensures that filers consistently use the same element across durations of time.
- This rule flags an error for those cases where the value of a monetary fact has a larger value reported than the value reported for another fact that represents the same concept, but over a longer duration of time. This is based on the list of items that cannot be negative. Of these, the rule only identifies those concepts that are monetary and have a period of a duration.
Line Items Requiring the Asset Acquisition Axis
- This rule is intended to identify those cases where the company reports facts that are expected to include the Asset Acquisition Axis.
- The rule flags an error when specific line item concepts are reported without the Asset Acquisition Axis and a member representing the actual acquisition.
While the rules will not be effective until September 1, 2021, we encourage filers to review and address any errors before the effective date to improve data quality.
What’s our plan?
As part of our high level of ongoing service and partner in your success, we want to reassure you that Workiva is working tirelessly to anticipate these changes to EDGAR and incorporating them into our platform. Since Workiva is a cloud-based software, we are able to quickly adapt to these changes, unlike a traditional software that may require IT work.
As such, Workiva has been updated to reflect the new rules and will appear with the “(DQC)” at the beginning of the validation message.
In the meantime, if you have any questions, feel free to let us know here in the Workiva Community. Thanks!