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XBRL: Introduction & Overview. Grant Boyd, CA [email protected] Technical Manager – XBRL, AICPA. Session Topics. Why XBRL XML / XBRL Overview Global Adoption Public Sector. XBRL. XBRL. XBRL. The Business Reporting Supply Chain. XBRL Financial Statements. XBRL-GL The Journal

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XBRL: Introduction & Overview

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Xbrl introduction overview

XBRL: Introduction & Overview

Grant Boyd, CA

[email protected]

Technical Manager – XBRL, AICPA


Session topics

Session Topics

  • Why XBRL

  • XML / XBRL Overview

  • Global Adoption

  • Public Sector


Xbrl introduction overview

XBRL

XBRL

XBRL

The Business Reporting Supply Chain

XBRL

Financial Statements

XBRL-GL

The

Journal

Standard

Transaction Standards

Business

Operations

Internal

Financial

Reporting

External

Financial

Reporting

Investment,

Lending, and

Regulation

Processes

Collaboration is KEY!!!

Companies

Financial

Publishers

and Data

Aggregators

Investors

Participants

Trading

Partners

Management

Accountants

Auditors

Regulators

Software Vendors


Xbrl introduction overview

Then …

XBRL began with the idea of a single individual - Charlie Hoffman, from a small CPA firm in Tacoma, Washington …

… and 13 Sponsoring Companies


Xbrl membership growth

Members

400

300

200

100

Time

2000

2001

2002

2003

2004

2005

2006

XBRL Membership Growth

400

300

275

210

130

80

13


Xbrl jurisdictions

XBRL Jurisdictions

NO

SE

FI

NL

DE

CZ

DK

IASB

LU

PL

RU

HU

CA

SI

UK

AT

UA

IR

BE

TR

US

SP

GR

CN

FR

PT

LB

JP

IT

KR

CH

IN

MT

VZ

HK

AE

CO

SG

BR

Established Jurisdictions

AU

ZA

Provisional Jurisdictions

NZ

AR

in Construction & in Project


Xbrl regulatory adoption publicly announced

XBRL Regulatory Adoption – Publicly Announced

  • KOSDAQ – Korea

  • National Tax Agency of Japan

  • New Zealand Exchange

  • Patent and Registration Office (PRV – Sweden)

  • U.S. Securities & Exchange Commission

  • Shanghai Stock Exchange 800+ companies

  • Shenzhen Exchange

  • Tokyo Stock Exchange

  • UK Financial Services Authority

  • UK Inland Revenue

  • US Federal Financial Institutions Examination Council (includes FDIC)

  • Australian Tax Office

  • Banco de España

  • Bank of Japan

  • Bundesbank

  • Committee of European Banking Supervisors (CEBS)

  • Chinese Securities Regulation Commission (CSRC) {sponsoring Shenzen and Shanghai exchanges}

  • Danish Commerce & Companies Agency

  • Dutch Tax Authority

  • Dutch Water Authority

  • Eurostat

  • EU Commission – XBRL in Europe

  • Financial Service Agency of Japan

  • The Irish Revenue

  • Spanish Stock Exchange Commission – 3000 companies


Xbrl introduction overview

This RFP contemplates a significant, multi-year project to update the system's underlying technology.


Xbrl introduction overview

During the next 12 months, the SEC will move beyond the EDGAR concept of electronic filing of paper-based forms, to an interactive data concept in which investors can have instant access to data that's ready to use in myriad software applications on their desktops

The SEC has already begun to move toward the use of interactive data in its disclosure program. Since February 2005, the Commission has been testing the use of data tagging in periodic and investment company reports, using a format known as Extensible Business Reporting Language (XBRL). Filing financial data in XBRL is currently voluntary, and a number of registrants have begun to use the program.


Gartner xml hype cycle 2005

Gartner – XML Hype Cycle, 2005


Xbrl introduction overview

Why XBRL …


Consolidated profit and loss account for the year ended june 30 2003

Consolidated Profit and Loss Account for the year ended June 30, 2003


Democratizing access to financial information percentage of companies receiving coverage

Democratizing Access to Financial InformationPercentage of Companies Receiving Coverage

Includes all common stock on NASDAQ National Market and NYSE.

Source: Thomson Financial. December 2002.


For example helping banks

Without XBRL …

Average Time for Updating Financial Information—11 days

Value-added Analysis and Decision-making?

90% time spent on Mechanics

10%

With XBRL …

Mechanics

Average Time for Updating Financial Information—1 days

With XBRL?

More Time for Analysis => Better Analysis => Less Risk

For example … helping banks


Xbrl introduction overview

Better information leads to better management… better governance… better markets


Xbrl introduction overview

XML / XBRL Overview …


Xbrl introduction overview

Simple problem:

1,200,000 results in a typical search

(e.g. IBM Fixed Assets)


Content without context

Content—without Context

Searching for the word “Mercury” on the Web can provide a wide variety of results—too many—such as:

Hg


Xbrl introduction overview

  • Auto Industry

  • <CAR-MODEL>

  • Chemical Industry

  • <SYMBOL>

  • Publishing or Mythology

  • <GOD>

  • <RECORD-LABEL>

  • Music Industry

  • Aerospace Industry

  • <PROGRAM>

  • Astronomy

  • <PLANET>

“Content in Context” (Industry-specific)


Xml markup what does it look like

XML Markup: What Does it Look Like?

Gerald Bostock

8080 Floppy Disk Drive

San Sushi, CA 94078

+1 (650) 555-1424

Birthdate: 19 October 58

<name>Gerald Bostock</name>

<address>

<street>8080 Floppy Disk Drive</street>

<city>San Sushi</city>

<state>California</state>

<country>United States of America</country>

<postcode>94078</postcode>

</address>

<telephone>6505551424</telephone>

<birthdate>1958-10-19</birthdate>

Ordinary information

Metadata:

Information about information


Xbrl is a pretty simple concept

XBRL is a pretty simple concept…

  • Tag individual concepts for electronic dissemination.

  • Most concepts that are disclosed are defined in a common framework – like IFRS

  • Those that aren’t are the unique aspects of a particular company’s operations. They are interesting because they are different to what their peers report.

  • Where a concept belongs to a common framework, use that.

  • Where a concept only belongs to a single organization, define it, and disclose that definition, together with the fact.


Xbrl introduction overview

Barcode has done for product distribution …

Efficiency

Savings

Quality


What xbrl is doing for business reporting

… what XBRL is doing for business reporting


Xbrl basics

XBRL Basics

  • XBRL is XML

  • It is Extensibile

  • There is an XBRL specification – tells you how to use XBRL

  • Hinges on taxonomies – the dictionary of terms for business reporting – which includes financial statements


Xbrl more than just definitions

Standardization

Presentation

Cash & Cash Equivalents

References

GAAP I.2.(a)

Instructions

Ad Hoc disclosures

Label

cashCashEquivalentsAndShortTermInvestments

Calculation

Cash = Currency + Deposits

FormulasCash ≥ 0

Contexts

US $

FY2004

Budgeted

Validation

XBRL – More Than Just Definitions

Presentation

Comptant et Comptant Equivalents

Presentation

現金及び現金等価物

Presentation

Гроші та їх еквіваленти

Presentation

Деньги и их эквиваленты

Presentation

Kas en Geldmiddelen

Presentation

现金与现金等价物

Presentation

Geld & Geld nahe Mittel

XMLItem

XBRL

Item

XBRL

Item


Xbrl introduction overview

Instance Document …


Xbrl introduction overview

XBRL Creation

Company Financial Statement

XBRL TaxonomyCreated by XBRL Consortium

TAGGING

XBRL DocumentCreated by Preparer

Consumed

Rendered


Two critical pieces for adoption

Taxonomies

Language

Significant upfront investment

Airport runway

Software

Tools

Needs critical mass

Fax machine

Two Critical Pieces for Adoption

Progress …

Growing monthly

2002-2005


Xbrl taxonomy growth

Public Taxonomies

Time

2000

2001

2002

2003

2004

2005

2006

XBRL Taxonomy Growth

February, 2005

US GAAP C&I

US GAAP Bank

US GAAP Ins

SEC Certification

Mgmt Report

Accountants Report

MD&A

This does not include any

private taxonomies such as

those prepared for statutory

purposes.

Nov, 2005

General Ledger

June, 2004

IFRS GAAP

NZ GAAP

UK GAAP

July, 2005

China Framework

IFRS GAAP

US GAAP Invest Mgt

January, 2004

UK GAAP 2.0

Canada GAAP

June, 2001

General Ledger


Xbrl tools growth representative listing

Tools

Time

2000

2001

2002

2003

2004

2005

2006

XBRL Tools Growth(Representative Listing)

FDIC Vendors

DBI Financial Systems, Inc.FinArchFRS Global Financial Reporting & AnalyticsIDOM, Inc.Information Technology, Inc.Fidelity Regulatory SolutionsJack Henry & Associates Inc.

Semansys Integrator

Semansys Analyzer

Core Filings

Microsoft Business Solutions

Snappy Reports

Carthesis

FR Solutions

J2R Batavia Data Driver

Semansys

Deployment Manager

Metapraxis

Adobe

DecisionSoft True North

High Ridge Technologies

UBMatrix Automator Pro

IBS Open Digital Reporting

Ipedo EII

Software AG

Covarity

Hyperion

Fujitsu XWand

Fujitsu

Oracle

XBI Software

IBMatrix

SAP

UBMatrix Converter

Rivet Software

XBRL Solutions

UBMatrix Tool Kit

SavaNet

DynAccSys Xabra

Caseware

Semansys Composer

Hitachi CBRP

Hitachi Ximba

Allocation Solutions

Navision

Creative Solutions

Hitachi XiRute

Edgar-Online IMetrix


Xbrl introduction overview

XBRL Adoption Accelerates …


Tax authorities

Tax Authorities

NO

CA

UK

DE

NL

IE

JP

CN

Tax XML Technical Committee recommends use of XBRL (Oasis-OECD)

29 Tax authorities

AU

NZ

Pilot

Committed


Financial banking regulators

Financial Banking Regulators

EU CEBS

SE

UK

DK

BE

DE

FR

NL

Portugal

LuX

ES

US

CN

JP

KR

SG

AU

ZA

NZ

Pilot

Committed


Exchanges equity regulators

Exchanges & Equity Regulators

OBX

CSE

LSE

TSX

Deutsche

Börse

KOSDAQ

EuroNext

Tokyo

SEC

Shanghai

Lux

Korea

SWX

Shenzen

Taipei

Singapore

Sao Paulo

Johannesburg

ASX

NZSE

Live

Eval

Pilot


Different kinds of reporting

Different kinds of reporting

  • “Open”

  • Aggregate data

  • Financial Statements

  • Common base disclosures

  • Industry, company and segmented additional disclosure

  • “Closed”

  • Aggregate data

  • Complex forms with hundreds or thousands of concepts

  • Advanced validation


More concrete

More concrete…

  • Closed form reporting for regulators in XBRL is now absolutely normal. Numerous major implementations.

  • Financial statement reporting in XBRL is still in its infancy, in terms of number, but is rapidly getting acceptance at all levels, from all stakeholders.

XBRL in Fall 2005

Closed Forms

Financial Statements


Xbrl regulatory adoption 40 projects publicly announced around the world

XBRL Regulatory Adoption – 40+ Projects Publicly Announced around the world

KEY PROJECTS

  • Banco de España

  • Dutch Ministry

  • US Federal Financial Institutions Examination Council (includes FDIC)

  • Shanghai Stock Exchange

  • SEC Voluntary Filing Program


Dutch taxonomy project

Dutch Taxonomy Project

  • Major eGovernment initiative

  • The Ministry of Justice and the Ministry of Finance in a joint effort intend to reduce the administrative burden of businesses by using XBRL to make the composing of reports and exchange of financial data easier.

  • Focuses on three important reporting chains:

    • Reporting of taxes; for instance profits tax, wage taxes, value added taxes (VAT) and Income taxes

    • Reporting of annual accounts

    • Reporting of economic statistics

Projected savings for Netherlands businesses?

350 million euro


Solution development all about me

Regulator

Regulator

Regulator

Company

Regulator

Regulator

Regulator

Company

Company

Regulator

Regulator

Regulator

Regulator

Company

Company

Company

Regulator

Regulator

Regulator

Regulator

Company

Company

Company

Regulator

Regulator

Regulator

Regulator

Company

Company

Company

Regulator

Regulator

Regulator

Regulator

Company

Problem = Exchange of

data between regulated

entity and regulator

Company

Regulator

Regulator

Regulator

Regulator

Regulator

Regulator

Regulator

Regulator

Company

Regulator

Regulator

Regulator

Regulator

Company

Company

Company

Regulator

Regulator

Regulator

Regulator

Company

Regulator

Company

Company

Regulator

Regulator

Regulator

Regulator

Company

Regulator

Company

Company

Regulator

Regulator

Regulator

Regulator

Company

Regulator

Company

Company

Regulator

Regulator

Company

Regulator

Regulator

XML

Schemas

Company

Regulator

Regulator

Regulator

Regulator

Proprietary solution for Regulator

Looks good to the regulator

Regulator

Regulator

Regulator

Regulator

Company

Regulator

XML

Schema

Company

Company

Regulator

Regulator

Regulator

Company

Regulator

Company

Company

Company

Regulator

Regulator

Company

Regulator

Regulator

Company

Company

Company

Regulator

Regulator

Company

Regulator

Regulator

Company

Company

Company

Regulator

Regulator

Company

Regulator

Company

Company

Company

Regulator

Regulator

Company

Regulator

Company

Regulator

Regulator

Proprietary solutions looks

different to the companies

and is a costly and complex

model

Regulator

Company

Company

Regulator

Regulator

Regulator

XML

Schema

Company

Company

Regulator

Regulator

Regulator

Company

Company

Regulator

Regulator solution =

Use XML Schema to

define terms for exchange.

Regulator builds taxonomy using

a (XML Schema) proprietary platform.

Company

Regulator

Regulator

Company

Company

Company

Regulator

Regulator

Company

Company

Company

Regulator

Regulator

Company

Company

Company

Regulator

Solution development – all about me


Solution development collaboration yields benefits to all participants

Regulations

Stds (FASB,

IFRS)

Interpretative

Guidance

3rd Party

Interpretative

Guidance

Publicly available

Audit

Guidance

Instructions

Internal

Reporting

Instructions

Reporting

Sources

XBRL

Validation

Solution development - Collaborationyields benefits to all participants

Company

Regulator


Xbrl introduction overview

http://www.sec.gov/spotlight/xbrl.htm

Preparer Benefits?

Consumer Benefits?

SEC Benefits?


Public sector project collaboration example

Public Sector Project Collaboration Example

  • New Zealand Government taxonomy under development

  • 8 key agencies collaborating on development (includes NZX, IRS, Statistics, E-gov, OAG, Audit Office, ACC, Treasury)

  • Compared standard forms required from business – common Information needs

  • Simplify reporting for preparers by producing 1 XBRL instance – feeding to multi regulators


Xbrl introduction overview

Transforming Business Reporting

The global XML standard for business and financial reporting

XBRL is happening!!!


Xbrl it s unstoppable

XBRL: It's Unstoppable

Grant Boyd, CA

Technical Manager – XBRL, AICPA


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