Could a better filing system have prevented the collapse?

SEC Chairman Chris Cox is stumping for something called the 21st Century Disclosure Initiative, which is intended to remedy "insufficient transparency"--something he believes "is at the heart of today's market problem." The new initiative is essentially a new filing system that will create a continuous stream of near real-time submissions via XBRL for easy searching online, CFO.com explains. The SEC plans to eventually replace EDGAR with IDEA, or interactive data electronic applications, which is scheduled to be up and running in three years.

Could this have prevented the credit crisis? Well, probably not. So much of the most interesting information was not reported data. But that's not to say the initiative is without merit. Indeed, the world will appreciate not only better data, but a way to access it logically. The key will be the application layer that organizes information for investors. That being said, there will be many companies who fight the idea of continuous disclosure or at least argue for the liability to be limited, as there will be more errors.  

For more:
- here's the CFO.com article

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