XBRL Progress Report

XBRL: Introduction & Overview Grant Boyd, CA [email_address] Technical Manager – XBRL, AICPA

Why XBRL
XML / XBRL Overview
Global Adoption
Public Sector
Session Topics

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

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 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 MT CH FR SI HU AT Established Jurisdictions Provisional Jurisdictions in Construction & in Project DE DK ZA

XBRL Regulatory Adoption – Publicly Announced
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
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)

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 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

Why XBRL …

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

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.

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 …

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

XML / XBRL Overview …

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: Hg

“ Content in Context” (Industry-specific)
Chemical Industry
<SYMBOL>
Auto Industry
<CAR-MODEL>
Publishing or Mythology
<GOD>
Music Industry
<RECORD-LABEL>
Aerospace Industry
<PROGRAM>
Astronomy
<PLANET>

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>
Metadata: Information about information Ordinary information

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.

Savings Quality Efficiency Barcode has done for product distribution …

… what XBRL is doing for business reporting

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 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

Instance Document …

XBRL Taxonomy Created by XBRL Consortium Consumed Rendered XBRL Document Created by Preparer Company Financial Statement TAGGING XBRL Creation

Two Critical Pieces for Adoption
Taxonomies
Language
Significant upfront investment
Airport runway
Software
Tools
Needs critical mass
Fax machine
2002-2005 Growing monthly Progress …

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

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

XBRL Adoption Accelerates …

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

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 Eval TSX OBX LSE CSE Deutsche Börse Taipei SEC Korea Shanghai

Different kinds of reporting
“ Closed”
Aggregate data
Complex forms with hundreds or thousands of concepts
Advanced validation
“ Open”
Aggregate data
Financial Statements
Common base disclosures
Industry, company and segmented additional disclosure

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.
Closed Forms Financial Statements XBRL in Fall 2005

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
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 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

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

http://www.sec.gov/spotlight/xbrl.htm Preparer Benefits? Consumer Benefits? SEC Benefits?

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

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

XBRL Progress Report

by MRicky on May 13, 2010

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XBRL Progress Report — Presentation Transcript