XBRL: Introduction & Overview   Grant Boyd, CA [email_address]   Technical Manager – XBRL, AICPA
<ul><li>Why XBRL </li></ul><ul><li>XML / XBRL Overview </li></ul><ul><li>Global Adoption </li></ul><ul><li>Public Sector <...
The Business Reporting Supply Chain External Financial Reporting Business Operations Internal Financial Reporting Investme...
Then … <ul><li>XBRL began with the idea of a single individual - Charlie Hoffman, from a small CPA firm in Tacoma, Washing...
XBRL Membership Growth 13 80 130 210 275 300 400 2000 2001 2002 2003 2004 2005 2006 Time Members 100 200 300 400
XBRL Jurisdictions UK CA SP US AU NZ IR JP KR BE VZ CO BR AR PT RU SG HK NO SE PL FI IT CN IN LB CZ UA LU IASB AE NL TR GR...
XBRL Regulatory Adoption – Publicly Announced <ul><li>Australian Tax Office </li></ul><ul><li>Banco de España </li></ul><u...
This RFP contemplates a significant, multi-year project to update the system's underlying technology.
During the next 12 months, the SEC will move beyond the EDGAR concept of electronic filing of paper-based forms, to an int...
Gartner – XML Hype Cycle, 2005
<ul><li>Why XBRL … </li></ul>
 
 
Consolidated Profit and Loss Account  for the year ended June 30, 2003 11.0 3.6 Earnings per share blah blah Blah 448 925 ...
Democratizing Access to Financial Information Percentage of Companies Receiving Coverage Includes all common stock on NASD...
For example … helping banks With XBRL? Mechanics More Time for Analysis => Better Analysis => Less Risk Value-added Analys...
Better information leads to better management… better governance… better markets
<ul><li>XML / XBRL Overview … </li></ul>
Simple problem: 1,200,000 results in a typical search (e.g. IBM Fixed Assets)
Content—without Context Searching for the word “Mercury” on the Web can provide a wide variety of results—too many—such as...
“ Content in Context” (Industry-specific) <ul><li>Chemical Industry </li></ul><ul><li><SYMBOL> </li></ul><ul><li>Auto Indu...
XML Markup:  What Does it Look Like? <ul><li>Gerald Bostock </li></ul><ul><li>8080 Floppy Disk Drive </li></ul><ul><li>San...
XBRL is a pretty simple concept… <ul><li>Tag individual concepts for electronic dissemination. </li></ul><ul><li>Most conc...
 
 
Savings Quality Efficiency Barcode has done for product distribution …
…  what XBRL is doing for business reporting
XBRL Basics <ul><li>XBRL is XML </li></ul><ul><li>It is Extensibile </li></ul><ul><li>There is an XBRL specification – tel...
XBRL – More Than Just Definitions XBRL Item XML Item XBRL Item Presentation Comptant et Comptant Equivalents Presentation ...
<ul><li>Instance Document … </li></ul>
XBRL Taxonomy Created by XBRL Consortium Consumed Rendered XBRL Document Created by Preparer Company Financial Statement T...
Two Critical Pieces for Adoption <ul><li>Taxonomies </li></ul><ul><ul><li>Language </li></ul></ul><ul><ul><li>Significant ...
XBRL Taxonomy Growth June, 2001 General Ledger January, 2004 UK GAAP 2.0 Canada GAAP  June, 2004 IFRS GAAP NZ GAAP UK GAAP...
XBRL Tools Growth (Representative Listing) Caseware Creative Solutions DynAccSys Xabra Fujitsu XWand J2R Batavia Data Driv...
<ul><li>XBRL Adoption Accelerates … </li></ul>
Tax Authorities CA UK IE AU NO JP NZ NL DE CN Pilot Committed Tax XML Technical Committee recommends use of XBRL (Oasis-OE...
Financial Banking Regulators US UK JP ES SE CN ZA AU DE DK Pilot Committed KR SG FR NZ NL LuX Portugal BE EU CEBS
Exchanges & Equity Regulators Sao Paulo NZSE ASX Johannesburg Shenzen EuroNext KOSDAQ Tokyo Singapore SWX Lux Pilot Live E...
Different kinds of reporting <ul><li>“ Closed” </li></ul><ul><li>Aggregate data </li></ul><ul><li>Complex forms with hundr...
More concrete… <ul><li>Closed form reporting for regulators in XBRL is now absolutely normal. Numerous major implementatio...
XBRL Regulatory Adoption – 40+ Projects Publicly Announced around the world <ul><li>KEY PROJECTS </li></ul><ul><li>Banco d...
Dutch Taxonomy Project <ul><li>Major eGovernment initiative </li></ul><ul><li>The Ministry of Justice and the Ministry of ...
Solution development – all about me Company Regulator Problem = Exchange of data between regulated entity and regulator Re...
Solution development - Collaboration yields benefits to all participants Company Regulator Publicly available XBRL Interna...
http://www.sec.gov/spotlight/xbrl.htm Preparer Benefits? Consumer Benefits? SEC Benefits?
Public Sector Project Collaboration Example <ul><li>New Zealand Government taxonomy under development </li></ul><ul><li>8 ...
The global XML standard for business and financial reporting Transforming Business Reporting XBRL is happening!!!
XBRL: It's Unstoppable   Grant Boyd, CA Technical Manager – XBRL, AICPA
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  • This slide demonstrates the pervasive migration of regulatory reporting onto the Internet and the wide range of agencies which are leveraging it around the world. Tax XML Technical Committee recommends use of XBRL (Oasis-OECD)
  • But if there isn’t agreement on what each of those details mean, naturally this is what you’ll get.
  • DAN Company uses XBRL to standardize financial info that supports the assessment of their portfolio of risk (that arises from dynamic pricing, M&amp;A, etc.)
  • Enhanced Business Reporting is the next step in the evolution of corporate reporting
  • Here are the Great Plains Financial Statements in an XBRL format. Can you see the differences between these financial statements and those in PDF format posted at their website?
  • XBRL provides more than just XML Schema for addressing these problems; it provides XML Schema in connection with XML Link (or XLink) to provide multidimensionality. The XBRL Item is connected to its label or machine definition via a schema concept; then XBRL goes beyond the use of Schema to link the element to a range of additional concepts: Presentation – providing a human readable label…..in this case with English, French, German, Dutch, Chinese, Japan, Russian, and Ukrainian presentation alternatives for this item label. Reference – can be any other concept such as reference materials, business process guidance, a Web service or even another business rule. Calculation – provides an internal mathematical check or validation on the item. Context – provides the item with transferable context around currency, period, nature (actual, budgeted, forecasted, etc.). The combination of XML Schema and XML Link provide the data with significant standardization and validation context that can be shared across applications, platforms and entities via domain level taxonomies.
  • http://www.xbrl.org/FRTaxonomies/
  • http://www.xbrl.org/tools http://www.xbrl.org/productsandservices There are more software tools in specific territories such as Japan, Germany, China, etc. http://www.ffiec.gov/find/softwarefocusgroup.htm FDIC vendors DBI Financial Systems, Inc. FinArch FRS Global Financial Reporting &amp; Analytics IDOM, Inc. Information Technology, Inc. Fidelity Regulatory Solutions Jack Henry &amp; Associates Inc.
  • This slide demonstrates the pervasive migration of regulatory reporting onto the Internet and the wide range of agencies which are leveraging it around the world.
  • The US Securities and Exchange Commission has also begun a voluntary filing program accepting company filings in XBRL. In establishing this project; it is important to realize the benefits which accrue to the preparer: a lower cost of reporting; and enhanced communication with the company analyst community. More information on this effort is available here: http://www.sec.gov/spotlight/xbrl.htm http://www.xbrl.org/us/frontend.aspx?clk=LK&amp;val=27
  • XBRL Progress Report

    1. 1. XBRL: Introduction & Overview Grant Boyd, CA [email_address] Technical Manager – XBRL, AICPA
    2. 2. <ul><li>Why XBRL </li></ul><ul><li>XML / XBRL Overview </li></ul><ul><li>Global Adoption </li></ul><ul><li>Public Sector </li></ul>Session Topics
    3. 3. The Business Reporting Supply Chain External Financial Reporting Business Operations Internal Financial Reporting Investment, Lending, and Regulation Processes Participants Auditors Trading Partners Investors Financial Publishers and Data Aggregators Regulators Software Vendors Management Accountants Companies XBRL Financial Statements XBRL-GL The Journal Standard Transaction Standards Collaboration is KEY!!! XBRL XBRL XBRL
    4. 4. Then … <ul><li>XBRL began with the idea of a single individual - Charlie Hoffman, from a small CPA firm in Tacoma, Washington … </li></ul>… and 13 Sponsoring Companies
    5. 5. XBRL Membership Growth 13 80 130 210 275 300 400 2000 2001 2002 2003 2004 2005 2006 Time Members 100 200 300 400
    6. 6. XBRL Jurisdictions UK CA SP US AU NZ IR JP KR BE VZ CO BR AR PT RU SG HK NO SE PL FI IT CN IN LB CZ UA LU IASB AE NL TR GR MT CH FR SI HU AT Established Jurisdictions Provisional Jurisdictions in Construction & in Project DE DK ZA
    7. 7. XBRL Regulatory Adoption – Publicly Announced <ul><li>Australian Tax Office </li></ul><ul><li>Banco de España </li></ul><ul><li>Bank of Japan </li></ul><ul><li>Bundesbank </li></ul><ul><li>Committee of European Banking Supervisors (CEBS) </li></ul><ul><li>Chinese Securities Regulation Commission (CSRC) {sponsoring Shenzen and Shanghai exchanges} </li></ul><ul><li>Danish Commerce & Companies Agency </li></ul><ul><li>Dutch Tax Authority </li></ul><ul><li>Dutch Water Authority </li></ul><ul><li>Eurostat </li></ul><ul><li>EU Commission – XBRL in Europe </li></ul><ul><li>Financial Service Agency of Japan </li></ul><ul><li>The Irish Revenue </li></ul><ul><li>Spanish Stock Exchange Commission – 3000 companies </li></ul><ul><li>KOSDAQ – Korea </li></ul><ul><li>National Tax Agency of Japan </li></ul><ul><li>New Zealand Exchange </li></ul><ul><li>Patent and Registration Office (PRV – Sweden) </li></ul><ul><li>U.S. Securities & Exchange Commission </li></ul><ul><li>Shanghai Stock Exchange 800+ companies </li></ul><ul><li>Shenzhen Exchange </li></ul><ul><li>Tokyo Stock Exchange </li></ul><ul><li>UK Financial Services Authority </li></ul><ul><li>UK Inland Revenue </li></ul><ul><li>US Federal Financial Institutions Examination Council (includes FDIC) </li></ul>
    8. 8. This RFP contemplates a significant, multi-year project to update the system's underlying technology.
    9. 9. 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.
    10. 10. Gartner – XML Hype Cycle, 2005
    11. 11. <ul><li>Why XBRL … </li></ul>
    12. 14. Consolidated Profit and Loss Account for the year ended June 30, 2003 11.0 3.6 Earnings per share blah blah Blah 448 925 Profit blah blah Blah blah blah blah blah Blah blah blah Blah blah blah blah Blah
    13. 15. Democratizing Access to Financial Information Percentage of Companies Receiving Coverage Includes all common stock on NASDAQ National Market and NYSE. Source: Thomson Financial. December 2002.
    14. 16. For example … helping banks With XBRL? Mechanics More Time for Analysis => Better Analysis => Less Risk Value-added Analysis and Decision-making? 10% Average Time for Updating Financial Information—11 days 90% time spent on Mechanics Average Time for Updating Financial Information—1 days Without XBRL … With XBRL …
    15. 17. Better information leads to better management… better governance… better markets
    16. 18. <ul><li>XML / XBRL Overview … </li></ul>
    17. 19. Simple problem: 1,200,000 results in a typical search (e.g. IBM Fixed Assets)
    18. 20. Content—without Context Searching for the word “Mercury” on the Web can provide a wide variety of results—too many—such as: Hg
    19. 21. “ Content in Context” (Industry-specific) <ul><li>Chemical Industry </li></ul><ul><li><SYMBOL> </li></ul><ul><li>Auto Industry </li></ul><ul><li><CAR-MODEL> </li></ul><ul><li>Publishing or Mythology </li></ul><ul><li><GOD> </li></ul><ul><li>Music Industry </li></ul><ul><li><RECORD-LABEL> </li></ul><ul><li>Aerospace Industry </li></ul><ul><li><PROGRAM> </li></ul><ul><li>Astronomy </li></ul><ul><li><PLANET> </li></ul>
    20. 22. XML Markup: What Does it Look Like? <ul><li>Gerald Bostock </li></ul><ul><li>8080 Floppy Disk Drive </li></ul><ul><li>San Sushi, CA 94078 </li></ul><ul><li>+1 (650) 555-1424 </li></ul><ul><li>Birthdate: 19 October 58 </li></ul><ul><li><name> Gerald Bostock </name> </li></ul><ul><li><address> </li></ul><ul><li><street> 8080 Floppy Disk Drive </street> </li></ul><ul><li><city> San Sushi </city> </li></ul><ul><li><state> California </state> </li></ul><ul><li><country> United States of America </country> </li></ul><ul><li><postcode> 94078 </postcode> </li></ul><ul><li></address> </li></ul><ul><li><telephone> 6505551424 </telephone> </li></ul><ul><li><birthdate> 1958-10-19 </birthdate> </li></ul>Metadata: Information about information Ordinary information
    21. 23. XBRL is a pretty simple concept… <ul><li>Tag individual concepts for electronic dissemination. </li></ul><ul><li>Most concepts that are disclosed are defined in a common framework – like IFRS </li></ul><ul><li>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. </li></ul><ul><li>Where a concept belongs to a common framework, use that. </li></ul><ul><li>Where a concept only belongs to a single organization, define it, and disclose that definition, together with the fact. </li></ul>
    22. 26. Savings Quality Efficiency Barcode has done for product distribution …
    23. 27. … what XBRL is doing for business reporting
    24. 28. XBRL Basics <ul><li>XBRL is XML </li></ul><ul><li>It is Extensibile </li></ul><ul><li>There is an XBRL specification – tells you how to use XBRL </li></ul><ul><li>Hinges on taxonomies – the dictionary of terms for business reporting – which includes financial statements </li></ul>
    25. 29. XBRL – More Than Just Definitions XBRL Item XML Item XBRL Item Presentation Comptant et Comptant Equivalents Presentation Geld & Geld nahe Mittel Presentation Kas en Geldmiddelen Presentation 现金与现金等价物 Presentation 現金及び現金等価物 Presentation Деньги и их эквиваленты Presentation Гроші та їх еквіваленти Validation Standardization Calculation Cash = Currency + Deposits Formulas Cash ≥ 0 Contexts US $ FY2004 Budgeted Label cashCashEquivalentsAndShortTermInvestments References GAAP I.2.(a) Instructions Ad Hoc disclosures Presentation Cash & Cash Equivalents
    26. 30. <ul><li>Instance Document … </li></ul>
    27. 31. XBRL Taxonomy Created by XBRL Consortium Consumed Rendered XBRL Document Created by Preparer Company Financial Statement TAGGING XBRL Creation
    28. 32. Two Critical Pieces for Adoption <ul><li>Taxonomies </li></ul><ul><ul><li>Language </li></ul></ul><ul><ul><li>Significant upfront investment </li></ul></ul><ul><ul><li>Airport runway </li></ul></ul><ul><li>Software </li></ul><ul><ul><li>Tools </li></ul></ul><ul><ul><li>Needs critical mass </li></ul></ul><ul><ul><li>Fax machine </li></ul></ul>2002-2005 Growing monthly Progress …
    29. 33. XBRL Taxonomy Growth June, 2001 General Ledger January, 2004 UK GAAP 2.0 Canada GAAP June, 2004 IFRS GAAP NZ GAAP UK GAAP February, 2005 US GAAP C&I US GAAP Bank US GAAP Ins SEC Certification Mgmt Report Accountants Report MD&A July, 2005 China Framework IFRS GAAP US GAAP Invest Mgt Nov, 2005 General Ledger This does not include any private taxonomies such as those prepared for statutory purposes. 2000 2001 2002 2003 2004 2005 2006 Time Public Taxonomies
    30. 34. XBRL Tools Growth (Representative Listing) Caseware Creative Solutions DynAccSys Xabra Fujitsu XWand J2R Batavia Data Driver Hitachi CBRP Metapraxis Microsoft Business Solutions Rivet Software UBMatrix Automator Pro DecisionSoft True North Allocation Solutions Edgar-Online IMetrix Hitachi Ximba Hitachi XiRute IBS Open Digital Reporting Ipedo EII Oracle XBI Software UBMatrix Tool Kit UBMatrix Converter Software AG Hyperion Navision XBRL Solutions IBMatrix Fujitsu SAP Snappy Reports High Ridge Technologies FR Solutions Covarity SavaNet FDIC Vendors DBI Financial Systems, Inc. FinArch FRS Global Financial Reporting & Analytics IDOM, Inc. Information Technology, Inc. Fidelity Regulatory Solutions Jack Henry & Associates Inc. Adobe Core Filings Semansys Integrator Semansys Analyzer Semansys Deployment Manager Semansys Composer Carthesis 2000 2001 2002 2003 2004 2005 2006 Time Tools
    31. 35. <ul><li>XBRL Adoption Accelerates … </li></ul>
    32. 36. Tax Authorities CA UK IE AU NO JP NZ NL DE CN Pilot Committed Tax XML Technical Committee recommends use of XBRL (Oasis-OECD) 29 Tax authorities
    33. 37. Financial Banking Regulators US UK JP ES SE CN ZA AU DE DK Pilot Committed KR SG FR NZ NL LuX Portugal BE EU CEBS
    34. 38. Exchanges & Equity Regulators Sao Paulo NZSE ASX Johannesburg Shenzen EuroNext KOSDAQ Tokyo Singapore SWX Lux Pilot Live Eval TSX OBX LSE CSE Deutsche Börse Taipei SEC Korea Shanghai
    35. 39. Different kinds of reporting <ul><li>“ Closed” </li></ul><ul><li>Aggregate data </li></ul><ul><li>Complex forms with hundreds or thousands of concepts </li></ul><ul><li>Advanced validation </li></ul><ul><li>“ Open” </li></ul><ul><li>Aggregate data </li></ul><ul><li>Financial Statements </li></ul><ul><li>Common base disclosures </li></ul><ul><li>Industry, company and segmented additional disclosure </li></ul>
    36. 40. More concrete… <ul><li>Closed form reporting for regulators in XBRL is now absolutely normal. Numerous major implementations. </li></ul><ul><li>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. </li></ul>Closed Forms Financial Statements XBRL in Fall 2005
    37. 41. XBRL Regulatory Adoption – 40+ Projects Publicly Announced around the world <ul><li>KEY PROJECTS </li></ul><ul><li>Banco de España </li></ul><ul><li>Dutch Ministry </li></ul><ul><li>US Federal Financial Institutions Examination Council (includes FDIC) </li></ul><ul><li>Shanghai Stock Exchange </li></ul><ul><li>SEC Voluntary Filing Program </li></ul>
    38. 42. Dutch Taxonomy Project <ul><li>Major eGovernment initiative </li></ul><ul><li>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. </li></ul><ul><li>Focuses on three important reporting chains: </li></ul><ul><ul><li>Reporting of taxes; for instance profits tax, wage taxes, value added taxes (VAT) and Income taxes </li></ul></ul><ul><ul><li>Reporting of annual accounts </li></ul></ul><ul><ul><li>Reporting of economic statistics </li></ul></ul>Projected savings for Netherlands businesses? 350 million euro
    39. 43. Solution development – all about me Company Regulator Problem = Exchange of data between regulated entity and regulator Regulator solution = Use XML Schema to define terms for exchange. Regulator builds taxonomy using a (XML Schema) proprietary platform. XML Schema Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Regulator XML Schema Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Proprietary solution for Regulator Looks good to the regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator XML Schemas Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Regulator Company Proprietary solutions looks different to the companies and is a costly and complex model Regulator
    40. 44. Solution development - Collaboration yields benefits to all participants Company Regulator Publicly available XBRL Internal Reporting Instructions 3 rd Party Interpretative Guidance Reporting Sources Regulations Interpretative Guidance Instructions Stds (FASB, IFRS) Audit Guidance Validation
    41. 45. http://www.sec.gov/spotlight/xbrl.htm Preparer Benefits? Consumer Benefits? SEC Benefits?
    42. 46. Public Sector Project Collaboration Example <ul><li>New Zealand Government taxonomy under development </li></ul><ul><li>8 key agencies collaborating on development (includes NZX, IRS, Statistics, E-gov, OAG, Audit Office, ACC, Treasury) </li></ul><ul><li>Compared standard forms required from business – common Information needs </li></ul><ul><li>Simplify reporting for preparers by producing 1 XBRL instance – feeding to multi regulators </li></ul>
    43. 47. The global XML standard for business and financial reporting Transforming Business Reporting XBRL is happening!!!
    44. 48. XBRL: It's Unstoppable Grant Boyd, CA Technical Manager – XBRL, AICPA
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