XBRL a technology and a revolutionSEC mandate for data standardizationInformation supply chain and internal reportingA use...
Kristine Brands, CMA        Assistant Professor, Regis University              kbrands@regis.edu    Charlie Hymer, CPA    ...
Agenda   XBRL Explained   SEC Mandate for XBRL   Internal Reporting   Mythbusters 2012 – XBRL   Business Cases   Final Tho...
What is XBRL?   A standardized way to communicate business reports.   Focus on providing a mechanism to define reporting t...
Built on the shoulders of giants.   XML (Extensible Mark-up Language) – Data standard for the web      Based on HTML (Hyp...
RIVET SOFTWARE   5
What is XBRL?US GAAP ASC         US GAAP TAXONOMY   US GAAP REPORTING   RIVET SOFTWARE                                    ...
What is XBRL?RIVET SOFTWARE    7
XBRL in action!RIVET SOFTWARE    8
Epic use case: the SEC mandate.                 The initial event that                 popularized XBRL in the US         ...
Entities, filings and facts by                                       phase.       No. of Entities               No. of Fil...
Why it matters.                    “I just sent over the 10-Q to my                    boss to review. I only started it N...
What’s in it for you?No more keying in data.   Work together w/ your    Use one Word   Instead, Link it.       team in rea...
Why it matters.                    “I just sent over the 10-Q to my                    boss to review. I only started it N...
Keep it simple.                                HTML     Data        Excel   Word                                XBRLRIVET ...
The role of software.1211
XBRL in internal reporting.XBRL GL/XBRL FR conceptual overview.RIVET SOFTWARE                         16
Internal Reporting: Three Tracks                       Edit reports  Primarily for       Ad hoc reports  internal use     ...
In general internal reporting is: More detailed More frequent More varied (less standardized) Fewer “EDI or Die” vendor de...
Types of internal reporting:OPERATIONAL AND ADMINISTRATIVE                      PREPARATION FORMANAGEMENT                 ...
Old World of Electronic Data Exchange                          NEW WORLDRIVET SOFTWARE                                    ...
ASB                BLT                                          Old world                      AFT                 TGI    ...
XBRL in internal reporting.BENEFITS OF XBRL FOR EXTERNAL PURPOSES ARE OBVIOUS    •   Shared meaning, different vocabulary ...
Filling in the gaps between GAAPS.             Tax      Regulators      Investors       Creditors     Lenders   WebsiteOne...
Data in internal reporting.CONSOLIDATIONSDATA MIGRATIONARCHIVALDATA TRANSFERAUDIT TRAILRIVET SOFTWARE                  24
Basic challenge: similar data, but...                                                                         XBRL GL prov...
XBRL GL challenges local concepts of “General Ledger.” Holds MoreRIVET SOFTWARE                                   26
Internal Data exchange.                     APOutsourced Travel and Expense                                             AR...
From initial transaction.Invoice #: 10037   INVOICE       May 2, 2003       Item        Description     Qty     Extension ...
The ERP system actual/virtual:    purchase orders                                              sales orders        PO     ...
Facilitating web service assurance                 Mapping 1                          Mapping 2                        Spe...
Data and views                                                                   Report                                   ...
Scope and role of XBRL                              Representations                                                Consoli...
XBRL GL works with XBRL FR.                          US                        XBRL       Tax                  IAS        ...
Benefits of XBRL for internal reporting.IMPROVES INTERNAL MANAGEMENT   •   Speed   •   Detail   •   Cost of abilities of a...
Benefits of XBRL for internal reporting.IMPROVES ASSURANCE DETAILS AGREEING OR RECONCILING TO REPORTING    • Internal audi...
Benefits of XBRL for external users.IMPROVES SHARING DATA WITH BANKS    • Asset based lending    • Listing of open account...
Today’s internal …tomorrow’s external?HOW ABOUT    • The same information from its source in greater detail - which may be...
EVERY SYSTEM AS  XBRL       System 1                 System 2                    System 3      XBRL GL                  XB...
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Regis Rivet IMA Presentation

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Regis Rivet IMA Presentation

  1. 1. XBRL a technology and a revolutionSEC mandate for data standardizationInformation supply chain and internal reportingA use case for XBRL
  2. 2. Kristine Brands, CMA Assistant Professor, Regis University kbrands@regis.edu Charlie Hymer, CPA Regional Account Manager, Rivet Software charlie.hymer@rivetsoftware.com Jordan Woodard Sr. Compliance Manager, Rivet Software jordan.woodard@rivetsoftware.com2
  3. 3. Agenda XBRL Explained SEC Mandate for XBRL Internal Reporting Mythbusters 2012 – XBRL Business Cases Final Thoughts QuestionsRIVET SOFTWARE 3
  4. 4. What is XBRL? A standardized way to communicate business reports. Focus on providing a mechanism to define reporting terms. Individually identify bits of data within a large block of information Getting to the heart of information that traditionally has been “paper-locked” “Bar coding for financial information”RIVET SOFTWARE 3
  5. 5. Built on the shoulders of giants. XML (Extensible Mark-up Language) – Data standard for the web  Based on HTML (HyperText Mark-up Language) - the language that rules the web XLINK (XML Linking Language) – A standard for linking pieces Of xml XHMTL (Extensible Hypertext Mark-up Language) – A modern variant of HTML and many moreRIVET SOFTWARE 4
  6. 6. RIVET SOFTWARE 5
  7. 7. What is XBRL?US GAAP ASC US GAAP TAXONOMY US GAAP REPORTING RIVET SOFTWARE 6
  8. 8. What is XBRL?RIVET SOFTWARE 7
  9. 9. XBRL in action!RIVET SOFTWARE 8
  10. 10. Epic use case: the SEC mandate. The initial event that popularized XBRL in the US was the SEC mandate for public companies to report their financials using the new data standard.RIVET SOFTWARE 9
  11. 11. Entities, filings and facts by phase. No. of Entities No. of Filings No. of Facts 507 5772 1381 6000567 Phase 1 5056 Phase 2 10928824 Phase 3 29069 3197389 6976Note:• Total entities of 8,864 • Phase 1 - 5 Billion Market Cap * Dataasof 7-27-2012 @ 7:54• Total filings of 39,897 • Phase 2 - Accelerate Filers• Total fact 20,126,780* • Phase 3 - Remaining Public Companies*includes duplicated facts RIVET SOFTWARE 10
  12. 12. Why it matters. “I just sent over the 10-Q to my boss to review. I only started it No more weekends yesterday morning... I usually work over the weekend and spend a few late nights during the quarter, but I at the office. only had to put in one Sunday afternoon and one evening and here I am - done. I was able to go to New Orleans instead.” Mitzie Pierce, CardtronicsRIVET SOFTWARE 11
  13. 13. What’s in it for you?No more keying in data. Work together w/ your Use one Word Instead, Link it. team in real-time. document to file everything.RIVET SOFTWARE 12
  14. 14. Why it matters. “I just sent over the 10-Q to my boss to review. I only started it No more weekends yesterday morning... I usually work over the weekend and spend a few late nights during the quarter, but I at the office. only had to put in one Sunday afternoon and one evening and here I am - done. I was able to go to New Orleans instead.” Mitzie Pierce, CardtronicsRIVET SOFTWARE 13
  15. 15. Keep it simple. HTML Data Excel Word XBRLRIVET SOFTWARE 14
  16. 16. The role of software.1211
  17. 17. XBRL in internal reporting.XBRL GL/XBRL FR conceptual overview.RIVET SOFTWARE 16
  18. 18. Internal Reporting: Three Tracks Edit reports Primarily for Ad hoc reports internal use Posting reports only Daily cash/AR/AP Performance Preparation for external use Financial Tax More detailed versions of Segment external reports PII*RIVET SOFTWARE * Personally identifiable information 17
  19. 19. In general internal reporting is: More detailed More frequent More varied (less standardized) Fewer “EDI or Die” vendor demands Change/up-front costs of standardization • without pressure from third party But: more pressures now Internal controls • SOx 404 PCAOB 3, Section 5.cRIVET SOFTWARE 18
  20. 20. Types of internal reporting:OPERATIONAL AND ADMINISTRATIVE PREPARATION FORMANAGEMENT • Financial • Planning • Statutory • Control • Legal • Decision making • Social • Environmental reportingINTERNAL REPORTING DRIVES • Procurement • Staffing and scheduling • Management and direction • Cash management • Preparation for external reporting …RIVET SOFTWARE 19
  21. 21. Old World of Electronic Data Exchange NEW WORLDRIVET SOFTWARE 20
  22. 22. ASB BLT Old world AFT TGI FRY ECP HDL SWG DRW MFP WCP QYD DLY SKD DLY WIU XPS KYF XOI ZIS CUI WKD WHR ASB RMO JIA GEX HCO BST VUH KFC AJT FQA DKERIVET SOFTWARE 21
  23. 23. XBRL in internal reporting.BENEFITS OF XBRL FOR EXTERNAL PURPOSES ARE OBVIOUS • Shared meaning, different vocabulary • Standards and definitions • Global consumption • Machine to machine consistency • Public: From A to B to CIS INTERNAL DIFFERENT?RIVET SOFTWARE 22
  24. 24. Filling in the gaps between GAAPS. Tax Regulators Investors Creditors Lenders WebsiteOne Aggregators Oneway way XBRL BUSINESS BUSINESS REPORTING Intra system Detail to summary ERP G/L Packages CRM XBRL GL Detail Journal Taxonomy Transaction Creation Accounting2-way recognition/2-way •Orders •Orders Suppliers (e-)Business •A/P •A/R classification Customers •Delivery •DeliveryRIVET SOFTWARE X12, UBL, CEFACT FORUM, Other XML INITIATIVES 23
  25. 25. Data in internal reporting.CONSOLIDATIONSDATA MIGRATIONARCHIVALDATA TRANSFERAUDIT TRAILRIVET SOFTWARE 24
  26. 26. Basic challenge: similar data, but... XBRL GL provides platform for agreed-upon and Similar Data well defined list of concepts – make sure my “Account” and your “Account” means the same Account, Amount, Date thing (not bank account or customer account but GL account.)Different Data Dictionaries: Field names, field order Based on XML, XBRL GL is order independent; sharing element names for import/export meansSystem 1: AccountNo, Amount, Date that AccountNo, AccountNumberm Account# and Account will all be express as one common name;System 2: MonetaryAmount, PostDate, AccountNumber applications will know what to expect inpublishingSystem 3: PostingDate, Account#, Value and consuming data files.System 4: Date, Journal, Account, Amount So many external data formats; XML Different provides a popular and increasing Data Formats Different Representations for the samedemanded data format. supported / concepts in common data field CSV Once you have agreed on data field Journal: PJ, Payroll Journal, Payroll ASCII standardization, software applications require Date: 12-31-03, 20031231, 12/31/03 agreement on content in many cases. XBRL GL WKS provides enumerated values to supplement XML data standards to help in this area. 1
  27. 27. XBRL GL challenges local concepts of “General Ledger.” Holds MoreRIVET SOFTWARE 26
  28. 28. Internal Data exchange. APOutsourced Travel and Expense AR Non-integrated point of sale GL IM External payroll provider Subsidiary with separate system PRRIVET SOFTWARE 1
  29. 29. From initial transaction.Invoice #: 10037 INVOICE May 2, 2003 Item Description Qty Extension 1078 Blue Widget 200 2,803.78 1083 Cyan Widget 100 1,402.93 Sub-total: 47,592.33 Freight: Total: 47,592.33 <documentType>invoice</documentType> <documentNumber>10037</document Number> <documentDate>2003-05-02</documentDate> 28
  30. 30. The ERP system actual/virtual: purchase orders sales orders PO AP, IM items OE AR, IM IM bomp employees customers vendors assets AR AP FA PR REPORTING GENERAL LEDGER
  31. 31. Facilitating web service assurance Mapping 1 Mapping 2 Spell Check Shipping Rate Check Credit Check Logistics Check Rules and Journalization Audit and monitoring toolRIVET SOFTWARE 30
  32. 32. Data and views Report Report Writer Select information from database(s), including joins Formulas create new data fields Filter the record set Add headers/footers, conditionals with record 1 groupings, derived totals based on sorts Concentration:Concentration: Data Fields Provide visual formatting Information Concepts RIVET SOFTWARE rules, like cross-tab
  33. 33. Scope and role of XBRL Representations Consolidation Transactional Internal External Investment,Processes Business Financial Economic XBRL Financial Lending, XBRL Operations Reportin Policymaking Reporting Regulation g GL FR Financial Publishers Central Companies InvestorsParticipants and Data Banks Aggregators 1 Trading Management Auditors Regulators Partners Accountants Software VendorsRIVET SOFTWARE
  34. 34. XBRL GL works with XBRL FR. US XBRL Tax IAS GL Internal RIVET SOFTWARE 33
  35. 35. Benefits of XBRL for internal reporting.IMPROVES INTERNAL MANAGEMENT • Speed • Detail • Cost of abilities of applications • Learn from mistakes, evaluate changes from plans early • Taxonomy - better communication from on top RIVET SOFTWARE 34
  36. 36. Benefits of XBRL for internal reporting.IMPROVES ASSURANCE DETAILS AGREEING OR RECONCILING TO REPORTING • Internal auditing • External auditing RIVET SOFTWARE 35
  37. 37. Benefits of XBRL for external users.IMPROVES SHARING DATA WITH BANKS • Asset based lending • Listing of open accounts from customers • Listing of inventoryIMPROVES SHARING DATA WITH ACQUIRERSIMPROVES SHARING DATA WITH PARTNERS 36RIVET SOFTWARE
  38. 38. Today’s internal …tomorrow’s external?HOW ABOUT • The same information from its source in greater detail - which may be tomorrows external reporting? • Bringing together internal groups to speak the same language?DRILL DOWN SUPPORT FROM EXTERNAL TODAYPOSSIBLE (PARTIAL OR TOTAL) REPLACEMENT FOR FORMS TOMORROW RIVET SOFTWARE 37
  39. 39. EVERY SYSTEM AS XBRL System 1 System 2 System 3 XBRL GL XBRL GL XBRL GL Account# Account Number accountMainID Identificador de la Cuenta accountMainID accountMainID Description Account Description Descripción Principal de la CuentaaccountMainDescription accountMainDescription accountMainDescription Amount Entry Amount Monto Monetario amount amount amount Posting Date Fecha de Asignación/Ingreso PostDate postingDate postingDate postingDate

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