Ci may june 03 liv watson
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Ci may june 03 liv watson Ci may june 03 liv watson Document Transcript

  • financial metricsXBRL (EXTENSIBLE BUSINESS REPORTINGLANGUAGE): ITS IMPACT ON THE CICOMMUNITYLIV WATSON, EDGAR Online, KIRBY LUNGER, Painted Word Inc. andTOM TAULLI, EDGAR Online Are you one of the 64% of US standards language in which to describe Ultimately, XBRL enhances thecompanies experimenting with a financial facts and concepts. The XBRL usability and transparency of financialperformance management (scorecard) standard is a member of the family of information reported under existingsystem (Institute of Management XML (eXtensible Markup Language) accounting standards. It simplifiesAccountants, 2002)? If you are, you derivative languages that creates a data disclosure, and allows companies tohave likely learned that a critical exchange standard. XML allows for communicate financial informationcomponent of these methodologies is increased interoperability among more readily via the internet andfinancial metrics. In performance systems and enhanced integration between applications.measurement methodologies such as the among internet-based applications.balanced scorecard or performance XBRL adds additional information toprism, these financial measures are electronic financial and business HOW XBRL COULD CHANGElinked to all of the other metrics in the reporting documents by including both YOUR LIFE: A HYPOTHETICALscorecard, such as employee and content ($10,000) and structural BUSINESS CASEcustomer perspectives. context ($10,000=net income for Q1/ Imagine you are responsible for a Many companies are asking 2003) information within the data competitive scorecard initiative at yourcompetitive intelligence professionals to items. company. Your team determinesmake these measurements available in This standard offers tremendous financial metrics for tracking thenear real-time via the internet or the productivity advantages to financial company’s performance against yourcompany’s intranet in a dashboard institutions, regulatory agencies and competitors. You need to track revenueformat. These initiatives usually entail others in the competitive intelligence growth and mix, pricing, costgathering data in disparate formats community. It maintains a process reduction, and utilization of fixedfrom several different databases, much where numbers and their textual assets. These measurements are requiredmanual re-work, and fact checking. explanations can be tracked, analyzed, to be delivered via the internet. A new industry standard, the and distributed through any report To provide this information toeXtensible Business Reporting without changing format or re-keying corporate decision-makers, you willLanguage (XBRL), radically changes data. need to pull information from databasesand greatly enhancescompetitive intelligenceprofessionals’ ability to STEP ONE STEP TWO STEP THREE STEP FOUR STEP FIVE STEP SIXtrack and analyze these Working group Data is manually Data is manually Working group Data is delivered or Data is released tofinancial performance determines financial metrics and located and pulled from proprietary validated and re-entered into meets several times to manually manually keyed into analytic or corporate decision- makers via internetdrivers by providing one source systems source systems spreadsheets to provide a basis validate data scorecard systemuniform format for the for comparisonpublishing, exchange, and Company Data Sourcesanalysis of financial data. • General Ledger • Fixed Assets • Accounts Receivable • Accounts PayableWHAT IS XBRL? The purpose ofXBRL is to enhance the Third Party Dataflow of financial and • Financial Statementsbusiness information Tracking Vendors • Revenue Projectionsthrough the creation of a Tracking Vendorsglobally useful data Figure 1: Competitive ScorecardVolume 6 • Number 3 • May-June 2003 47
  • financial metrics exchange while reducing related costs. STEP ONE STEP TWO STEP THREE STEP FOUR The beneficiaries of XBRL include all Working group Data is located Data is sent Data is released to members of the financial statement determines and pulled using XBRL to corporate decision- information supply and analysis chain, financial metrics and from source systems analytic or makers via Internet source systems from preparers and distributors to scorecard systems without any aggregators and, most importantly, end manual intervention users such as competitive intelligence professionals. This standard provides a Company Data Sources very rich platform for the increased use • General Ledger • Fixed Assets XBRL of advanced analytics for competitive • Accounts Receivable analysis. • Accounts Payable Liv A. Watson is director of XBRL (eXtensible Business Reporting Language) Third Party Data for EDGAR Online Inc. She has • Financial Statements Tracking Vendors XBRL provided her expertise to converting • Revenue Projections EDGAR Online’s SEC report database Tracking Vendors into XBRL spec II compliant data. This XBRL repository delivers financial information reported on SEC EDGARFigure 2: XBRL’s Effect filings for all publicly traded USwithin the company and from third- analytics application you choose and companies. Liv is a founding member ofparty information vendors. You will published over the internet to corporate the XBRL International Consortium. Sheneed information from your company, decision-makers. has published several XBRL relatedyour key competitors and the industry Major improvements include time articles for international journals. She issector averages. and cost savings through reducing currently the chairman of the XBRL As demonstrated in Figure 1, this manual data entry. Data accuracy Financial Supply Chain and the co-chairinformation is not easily accessible in a improves through less extrapolation of the XBRL Research Committee. Livpre-XBRL world. Your team will most around what constitutes an apples to can be reached at lwatson@edgar-likely spend hours, days, or weeks apples data comparison. The result is online.commanually keying in or sourcing data that corporate decision-makers canfrom several proprietary systems. This more quickly access accuratedata will then have to be checked for information on market conditions and Kirby Lunger oversees businessdata entry errors and re-keyed to ensure make better strategic decisions. development for the financial servicescompetitive comparison within your practice at Painted Word, a managementindustry. After this evaluation, your consulting and system integrationteam will then have to create a process CONCLUSIONS company based in Cambridge, MA thatto feed this information into an eXtensible Business Markup offers services focused on the businessanalytics or scorecard system that will Language (XBRL) is a powerful intelligence and corporate performanceprovide these financial metrics over the mechanism to exchange financial and management industry. She can be reachedinternet to corporate decision-makers. business reporting data. It is an ideal at kirby_lunger@paintedword.com. Figure 2 shows the major changes solution for transferring structuredthat XBRL brings to this competitive financial and business reporting datascorecard project. Your team will still from server-to-client, server-to-server orhave to identify key financial application-to-application. XBRL takes Tom Taulli is an EDGAR Onlineinformation sources. However, now the concept of democratization of analyst and can be reached atthese sources provide a uniform apples financial and business reporting data to tom@taulli.com.to apples financial dataset for your the next level. For more information aboutcompany and its competitors. This XBRL, like other emerging open- XBRL please visit: www.edgar-information can then be delivered architecture technologies, increases the online.com/xbrl/automatically to whatever scorecard or overall efficiency of information48 Competitive Intelligence Magazine