XBRL: Where are we? Update for business and technical professionals

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Presentation given in Bogota, Columbia May 15, 2009.

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  • Presented in Bogota, Columbia May 15, 2009
  • XBRL: Where are we? Update for business and technical professionals

    1. 1. XBRL: Where Are We? Update for Business and Technical Professionals May 15, 2009 Charlie Hoffman [email_address] UBmatrix www.ubmatrix.com
    2. 2. Presenters http://www.slideshare.net/CharlesHoffman Presentation is available at SlideShare.net Charlie Hoffman Director of Innovation Solutions at UBmatrix; CPA, MBA, Co-architect of the US GAAP Taxonomy for financial reporting and member of the taxonomy creation team; key member if IFRS-GP taxonomy creation team; Former Price Waterhouse auditor; Received the AICPA's Innovation User of Technology Award; Graduate of Pacific Lutheran; Author of many white papers and publications including "Financial Reporting Using XBRL", "XBRL Essentials", "Hitchhiker's Guide to the IFRS-GP Taxonomy".
    3. 3. XBRL for Dummies coming soon…
    4. 4. Agenda <ul><li>Quick XBRL Primer </li></ul><ul><li>XBRL: Where are we? </li></ul><ul><li>Interesting observations, trends </li></ul><ul><li>Predictions </li></ul><ul><li>XBRL “killer applications” </li></ul><ul><li>How I intend to leverage XBRL </li></ul>
    5. 5. Tags (Structured Information) <gaap:NetIncomeOrLoss contextRef=&quot;Period-2009&quot; unitRef=&quot;US-Dollars&quot; decimals=“-3&quot;> 5347000 </gaap:NetIncomeOrLoss>
    6. 7. XBRL: Where are we? <ul><li>Projects around the world </li></ul><ul><li>Analysts coming to the table </li></ul><ul><li>SEC project will provide insights </li></ul><ul><li>XBRL and XML boundaries </li></ul><ul><li>XBRL and Semantic Web technology boundaries </li></ul>
    7. 8. Projects Around the World <ul><li>Similar types of projects appearing in countries around the world </li></ul><ul><ul><li>Regulators of stock exchanges and securities </li></ul></ul><ul><ul><li>Regulators of financial institutions (banking supervisors) </li></ul></ul><ul><ul><li>Business registrars </li></ul></ul><ul><ul><li>Revenue reporting and tax filing agencies (the tax man) </li></ul></ul><ul><ul><li>National statistical agencies </li></ul></ul>
    8. 9. Analysts Coming to the Table <ul><li>CFA Institute Paper ( http://www.cfapubs.org/toc/ccb/2009/2009/3 ) </li></ul><ul><ul><li>Principle 1: Disclosure neutrality </li></ul></ul><ul><ul><li>Principle 2: Limited extensibility </li></ul></ul><ul><ul><li>Principle 3: Global initiative </li></ul></ul><ul><ul><li>Principle 4: Open source </li></ul></ul><ul><ul><li>Principle 5: Regulator cooperation </li></ul></ul>
    9. 10. <ul><li>XBRL – “one of the more successful Semantic Web metadata format” </li></ul>SEC Project will Provide Insights Web 1.0 Information Web 3.0 Information
    10. 11. XBRL and XML Boundaries <ul><li>XBRL is XML, uses XML syntax </li></ul><ul><li>XBRL expresses meaning; XML only articulates syntax </li></ul><ul><li>XBRL allows validation against expressed meaning </li></ul><ul><li>XBRL separates concept definition from content model </li></ul><ul><li>XBRL can express multiple (infinite) hierarchies of explicit relations </li></ul><ul><li>XBRL provides organized, prescriptive extensibility </li></ul><ul><li>XBRL enables “intelligent”, metadata driven connections to information </li></ul>
    11. 12. XBRL and Semantic Web Technologies Boundaries <ul><li>RDF and OWL are key semantic web technologies </li></ul><ul><li>XBRL called “one of the more successful Semantic Web metadata format” </li></ul><ul><li>RDF is a graph database (so is XBRL) </li></ul><ul><li>OWL expresses complex metadata/semantics (so does XBRL) </li></ul><ul><li>XBRL appears to be : </li></ul><ul><ul><li>Like a “database” or publishing mechanism </li></ul></ul><ul><ul><li>Business information specific metadata </li></ul></ul><ul><ul><li>A transfer/transport medium </li></ul></ul><ul><li>Remember EDGAR/IDEA comparison from earlier </li></ul>
    12. 13. Interesting Observations, Trends <ul><li>XBRL works well for technical people </li></ul><ul><ul><li>FDIC system works well </li></ul></ul><ul><ul><li>Lots of organizations have implementing XBRL successfully </li></ul></ul><ul><ul><li>No glaring failures </li></ul></ul><ul><li>XBRL does not work as well for business people </li></ul><ul><ul><li>One business person exchange information with another business person with no IT involvement </li></ul></ul><ul><ul><li>Flexible system </li></ul></ul><ul><li>Goal is business person to business person information exchange within an open, flexible system </li></ul><ul><li>We are moving in the right direction (slowly) </li></ul>
    13. 14. Predictions <ul><li>SEC project with highlight some XBRL realities, it will push the XBRL envelope </li></ul><ul><li>SEC will make XBRL work, with extensibility </li></ul><ul><li>That will push changes in financial reporting </li></ul><ul><li>IFRS will be used globally, even in the US </li></ul><ul><li>Over time, all this will dramatically impact financial reporting for everyone, everywhere </li></ul>
    14. 15. XBRL “ Killer Applications ” <ul><li>Business person to business person information exchange </li></ul><ul><li>Dynamic (flexible ) information exchange </li></ul><ul><li>Easy to use (think TurboTax) </li></ul><ul><li>Collaborative (integrated) </li></ul><ul><li>Operating environment (think iTunes, iPod) </li></ul><ul><li>Agility </li></ul><ul><li>Radically tailorable tool, but within rigid framework </li></ul><ul><li>One globally accepted logical model (think SQL) </li></ul><ul><li>Building blocks </li></ul><ul><li>Primitive types </li></ul><ul><li>Hidden (from business users) technical rules enforcing syntax </li></ul><ul><li>Business rules driven, exchangeable business rules </li></ul><ul><li>Integrated internal audit process </li></ul><ul><li>Supplemental internal and external audit capabilities </li></ul><ul><li>Smart transactions </li></ul>
    15. 16. How I Intend to Leverage XBRL <ul><li>I am a CPA, will use XBRL for things CPAs do </li></ul><ul><li>Spent 15 years of doing things where XBRL could have helped; now I do have XBRL to use (almost there) </li></ul><ul><li>When XBRL exists, then lots of change will occur </li></ul><ul><ul><li>Financial reporting disclosure checklist automated with XBRL Formulas </li></ul></ul><ul><ul><li>Accounting Trends and Techniques , templates, using the SEC IDEA system </li></ul></ul><ul><ul><li>XBRL “Killer Application” for closing the books </li></ul></ul><ul><ul><li>XBRL internal and external audit schedules </li></ul></ul><ul><li>When there is change, there is opportunity! </li></ul>
    16. 17. UBmatrix <ul><li>Leading provider of XBRL software </li></ul><ul><ul><li>XBRL processing engine </li></ul></ul><ul><ul><li>Enterprise Application Suite </li></ul></ul><ul><ul><li>XBRL Database Adaptor (XBRL-DB) </li></ul></ul><ul><ul><li>Report Builder </li></ul></ul><ul><ul><li>Taxonomy Designer </li></ul></ul><ul><li>Customers include the largest XBRL production systems </li></ul><ul><ul><li>Keane (SEC prime contractor) </li></ul></ul><ul><ul><li>FDIC </li></ul></ul><ul><ul><li>Banque de France </li></ul></ul><ul><ul><li>Microfinance Information Exchange </li></ul></ul><ul><li>www.ubmatrix.com </li></ul>
    17. 18. Where to Learn More <ul><li>XBRL International </li></ul><ul><ul><li>http://www.xbrl.org </li></ul></ul><ul><li>Charlie’s Blog </li></ul><ul><ul><li>http://xbrl.squarespace.com </li></ul></ul><ul><li>Learn More about XBRL </li></ul><ul><ul><li>http://www.ubmatrix.com/company/learn.htm </li></ul></ul><ul><li>Case Studies </li></ul><ul><ul><li>http://www.ubmatrix.com/casestudies </li></ul></ul>
    18. 19. More Information <ul><li>http://www.slideshare.net/CharlesHoffman </li></ul><ul><li>http://xbrl.squarespace.com </li></ul><ul><li>http://www.xbrlsite.com </li></ul><ul><li>http://www.amazon.com/XBRL-Dummies-Charles-Hoffman/dp/0470499796/ </li></ul><ul><li>http://www.lulu.com/content/paperback-book/financial-reporting-using-xbrl-ifrs-and-us-gaap-edition/231882 </li></ul>
    19. 20. Questions?

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