New Financial 'Language' For Funds

On the SEC's Web site, investors can access an XBRL application that is targeted at public companies by tagging certain information from their detailed financial statement data. The ICI's XBRL version is similar, though it is specifically targeted to mutual fund investors and advisers, who are less focused on financial statements for key information, but instead tend to look at information in the risk/return summary when evaluating funds.

The ICI's proposal is the first that "extends XBRL beyond the financial statements," says Mike McNamee, director of public communications at the ICI.

McNamee says mutual fund companies that elect to use XBRL will have to use it across the board, which will prevent funds from cherry-picking which information they highlight. Like the SEC's XBRL application for public companies, the mutual fund XBRL program would be voluntary for mutual funds. It also would be available through the SEC's EDGAR service.

There are a few more steps before the ICI's XBRL application would be made available to investors. There is a 45-day review period that begins today. Any comments submitted will be evaluated and adjustments may be made. The SEC would then have to amend its program to include or add the new information from the risk/return summary.