Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Considerations for Accounting Professionals Wishing to Perform XBRL-Specific Assurance Services<br />Hang Miao<br />
Brief introduction to XBRL<br />eXtensible Business Reporting Language<br />Computing language designed to improve quality...
Brief introduction to XBRL (Cont’d)<br />Example:<br />Consider the following piece of financial information:<br />Assets ...
Brief introduction to XBRL (Cont’d)<br />XBRL financial statements are created by tagging financial statement data with el...
Financial statements<br />XBRL document (Instance)<br />Users<br />XBRL taxonomy<br />
Source: http://www.informationbuilders.com/images/products/webfocus/enlarge/enl_xbrl-fml.jpg<br />
What services can an accountant provide with respect to XBRL?<br />XBRL was not designed with information integrity in min...
Can professional accountants provide XBRL services?<br />Assurance is currently not required for XBRL documents<br />As wi...
Choosing between an Attestation Report and Specified Procedures Report<br />Two types of reports can be issued:<br />Attes...
Skills/expertise required<br />Knowledge of regulatory environment (e.g. SEC filing rules in the US)<br />Knowledge of IT ...
Future developments<br />More guidance– AICPA Exposure Draft<br />Increased size and complexity of XBRL filings<br />Incre...
Thank you for watching<br />
Upcoming SlideShare
Loading in …5
×

Considerations and areas of judgment for accounting professionals

888 views

Published on

  • Be the first to comment

Considerations and areas of judgment for accounting professionals

  1. 1. Considerations for Accounting Professionals Wishing to Perform XBRL-Specific Assurance Services<br />Hang Miao<br />
  2. 2. Brief introduction to XBRL<br />eXtensible Business Reporting Language<br />Computing language designed to improve quality of financial reporting by:<br />Eliminating manual keying<br />Making financial statements between companies more comparable<br />
  3. 3. Brief introduction to XBRL (Cont’d)<br />Example:<br />Consider the following piece of financial information:<br />Assets held For Sale € 100,000<br />In XBRL, this information would be represented as:<br /><ifrs-gp: AssetsHeldSaleontextRef=”Current_AsOf” unitRef=”U-Euros” decimals=”0”> 100000 </ifrs-gp:AssetsHeldSale><br />Source: http://www.xbrl.org/Example1/<br />
  4. 4. Brief introduction to XBRL (Cont’d)<br />XBRL financial statements are created by tagging financial statement data with elements from an XBRL taxonomy<br />An XBRL taxonomy is a dictionary of the XBRL tags. <br /><ifrs-gp: AssetsHeldSalecontextRef=”Current_AsOf” unitRef=”U-Euros” decimals=”0”>100000</ifrs-gp:AssetsHeldSale><br />
  5. 5. Financial statements<br />XBRL document (Instance)<br />Users<br />XBRL taxonomy<br />
  6. 6. Source: http://www.informationbuilders.com/images/products/webfocus/enlarge/enl_xbrl-fml.jpg<br />
  7. 7. What services can an accountant provide with respect to XBRL?<br />XBRL was not designed with information integrity in mind<br />Possible problems with XBRL include:<br />Improper use of taxonomic elements<br />Improper use of custom elements<br />XBRL document does not match original financial statements<br />
  8. 8. Can professional accountants provide XBRL services?<br />Assurance is currently not required for XBRL documents<br />As with any other assurance engagement, the accountant must be independent<br />See AICPA SOP 09-1 for list of engagement conditions<br />
  9. 9. Choosing between an Attestation Report and Specified Procedures Report<br />Two types of reports can be issued:<br />Attestation Report (US: AT 101, Can: HB 5025)<br />Specified Procedures Report (US: AT 201, Can: HB 5025)<br />Choice depends on user needs<br />Specified procedures report requires input from users <br />
  10. 10. Skills/expertise required<br />Knowledge of regulatory environment (e.g. SEC filing rules in the US)<br />Knowledge of IT and XBRL<br />Ability to use XBRL reading and manipulation programs<br />
  11. 11. Future developments<br />More guidance– AICPA Exposure Draft<br />Increased size and complexity of XBRL filings<br />Increased user sophistication with respect to XBRL<br />
  12. 12. Thank you for watching<br />

×