XBRL and the MACPA - Summit Presentation


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Slides of a presentation given by myself and Skip Falatko of the MACPA. This presentation covers what XBRL is in broad terms as well as an in-depth look at how the MACPA is using XBRL to improve internal efficiencies as well as extend the U.S GAAP FR Taxonomy.

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XBRL and the MACPA - Summit Presentation

  1. 1. XBRLWhat is it?What’’s happening with it?
  2. 2. The panelists:•• Skip Falatko –– MACPA•• Thomas Hood –– MACPA student intern (Salisbury University)•• Eric E. Cohen –– PricewaterhouseCoopers & founding member of XBRL
  3. 3. XBRL••eXtensible••Business••Reporting••Language
  4. 4. XBRL•• Open standard tagging language•• In use internationally•• SEC requirement in US•• ““Bar coding”” of financial information
  5. 5. XBRL tags provide meaning andcontext such as……•• McCormick & Company•• Sales Revenue $3,122•• US Dollars•• US GAAP•• Audited•• Year ending November 30, 2010
  6. 6. Taxonomies are data dictionaries•• Used to organize tagged data•• They include the financial statement elements•• Are unique to specific industries•• Can be extended to fit your organization
  7. 7. Initial XBRL work with Microsoft•• Fitting into the commercial and industrial taxonomy was a challenge•• Non-profits need their own taxonomy•• XBRL would be beneficial to the non-profit community
  8. 8. Why does XBRL matter?•• Facilitates the automatic exchange of information•• Can be used to populate financial statements, tax returns, or anything that relies on data•• Has the potential to change what we do as CPAs
  9. 9. MACPA’s XBRL project•• Learn about XBRL•• Impacts our members•• Leverage the technology internally to improve our speed, processes and capability
  10. 10. Overview•• Map Accounting Data to XBRL Global Ledger•• Subsidiary closing entry•• Extend the GAAP Taxonomy•• Use the XBRL GL Accounting Data GL to GAAP KPI Analysis –– Excel XML import Financial Scoreboard –– batch files/GUI
  11. 11. Mapping•• Use SQL to retrieve accounting data What information do we need?•• Use functions to facilitate movement of data•• Map –– Account info, journal entries, audit rollup groups, KPI’’s
  12. 12. Accounting Data
  13. 13. XBRL GL Data
  14. 14. Excel XML Import
  15. 15. Excel Pivot Table
  16. 16. Subsidiary Closing Entry•• Differences due to: BLI Closing Entry•• Use Global Ledger to ‘‘reverse’’ the closing entry•• No data in the accounting system is affected•• Reversing Journal Entry is easily pulled containing full detail in GL
  17. 17. Reversal of Closing Entry••
  18. 18. Reversing Entry in Excel
  19. 19. Extending GAAP•• Use GAAP Commercial & Industrial as entry point•• Add FASB References•• Create a dimension Dues Courses
  20. 20. GAAP Extension
  21. 21. Use the Data•• XBRL Global Ledger –– SRCD Module Facilitates the link between GL and FR Key Component of GL•• KPI Analysis Excel Pivot tables•• Financial ScoreBoard Second Mapping Batch Files/Graphical User Interface
  22. 22. Outlook•• Improve mappings - Global Ledger can represent much more than just general ledger –– use it to its max potential! Transaction level Multiple databases•• Database integration Dynamics Payroll AM4 SalesForce•• Audit Schedules/worksheets•• Financial Dashboard –– Own your Data•• Automated 990 form generation
  23. 23. What did Global Ledger Do?•• Automated generation of financial statements•• Automated KPI analysis of revenue/expense•• Automated Financial ScoreBoard package•• Drill down from audit rollup to underlying transactions•• ““Ownership”” of data•• Think Global Ledger, Think Internal
  24. 24. SEC Mandates•• Final Financial Reports Mutual Funds Credit Rating Agencies•• Proposed Extractive Industries SWAPs Registration and Regulation of Security- Based Swap Execution Facilities
  25. 25. SEC (Continued)••2011 Taxonomy FASB responsibility Incorporation into exposure drafts••Year 3 500 -> 1700 -> 10,000 IFRS Concerns Reaction: HOT OFF THE PRESSES!! End of limited liability for Group 1
  26. 26. SEC (Continued)
  27. 27. SEC (Continued)
  28. 28. Other Mandates•• Ongoing mandates in US (FDIC), Belgium, Chile, China, France, Germany, India, Israel, Italy, Japan, Korea, Spain and others•• Inline XBRL at HMRC; also Denmark, Ireland, elsewhere The ___ of HTML and the ___ of XBRL
  29. 29. SBR••SBR movement: Primary goal: Reduced compliance burden But also: Greater efficiencies, communications, transparency NL, AU, TW, SP, UK, et al Moving from option to mandate
  30. 30. Europe••Banking sector Former CEBS now EBA Basel II••Insurance sector European Insurance and Occupational Pensions Authority (EIOPA)
  31. 31. Assurance•• SOP 09-1: Agreed upon procedures•• Next step: Principles and Criteria http://www.aicpa.org/InterestArea s/AccountingAndAuditing/Resource s/XBRL/DownloadableDocuments/F INAL-ED-XBRL-Principles-and- Criteria.pdf Hot off the presses!
  32. 32. Tooling•• From outsourced to in-house Clarity FSR WebFilings•• To open source www.arelle.org•• To embedded MACPA story
  33. 33. XBRL Global Ledger•• The touch point to transactional standards•• The Seamless Audit Trail•• Outreach OMG, EDMC OCEG HIMSS and Medical Banking Project US Government space•• Research: Momentum Accounting (K. Wright)
  34. 34. Technical••Formal modelling••Many updates and refinements••Data types and Units of measure
  35. 35. Events••XBRL US, Nashville in Septemberhttps://events.capsllc.net/xbrl2011/welcome••XBRL International XII Brussels (just concluded) Montreal in October Abu Dhabi in the Spring.
  36. 36. Questions?For more information:skip@macpa.orgjh55424@gulls.salisbury.edueric.e.cohen@us.pwc.comAltova - MACPA XBRL Case Studyhttp://www.altova.com/documents/MACPA_Low.pdfXBRL Resources:http://www.xbrl.comhttp://www.cpasuccess.com/xbrlhttp://www.xbrlplanet.org/http://xbrlnetwork.ning.com/http://www.altova.com
  37. 37. Skip Falatko, CPA Director of Finance Maryland Association of CPAs Business Learning Institute (443) 632 2301 E mail skip@macpa.org Twitter: www.twitter.com/skipfalatkoLinked In: http://www.linkedin.com/pub/skip falatko/4/14b/332 Web http://www.macpa.org Blog http://www.cpasuccess.com http://www,bizlearningblog.com