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XBRL Fundamentals


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Get to know the basics of XBRL.

Published in: Economy & Finance, Technology

XBRL Fundamentals

  1. 1. XBRL Fundamentals
  2. 2. In this session…• Extending XML to XBRL• Introduction to XBRL documents• XBRL Taxonomy – Schema – Linkbases• Building taxonomy 2
  4. 4. XML – eXtensible Mark-up LanguageXML is a key Internet standard for transmission and interoperability• Electronic transmission is newer than electronic storage• With the growth of the Internet, transmission of data is exploding• XML uses "tags" to define data and is self-descriptive• XML has been developed by w3 consortium• Designed to describe, create, structure, store and transmit information• Processing gets shifted from applications to data• Data stored in hierarchy• Data stored in simple easy to use xml files 4
  5. 5. Extending XML - XBRL • XBRL combines hierarchical xml data with relationships and references between the data points. • It uses Xlink technology of linking xml files • It links the data xml files with various other files containing definitions, presentation, calculation, references relationships • XBRL data files are a set of xml and xsd files. Data with tags, Data with tags Data Hierarchy & hierarchy Relationships Primitive Data XML Data Formats XBRL Data Formats Formats 5
  6. 6. XML Vs. XBRL XML XBRL ExampleThe tags are not fixed and Tags defined in the schema Com A: Net Sales Taxonomy : SalesRevenueNetstandard. document are standard for Com B: Net turnover taxonomy.XML defines hierarchy of the XBRL defines relationships using a <GrossProfit> GrossProfit 1tags, which needs to be standard approach <TotalRevenue/> TotalRevenue 1processed by the application <TotalExpenditure/> TotalExpenditure -1 </GrossProfit>XML is validated with a single xsd XBRL data files are validated with Total Expenditure is to be Software automaticallyfile for data type and occurrence xml linkbase files & schema files subtracted from Total understands that Totalvalidations. Revenue. This is build at the Expenditure needs to be software level subtracted from Total RevenueXML data files have no standard XBRL data files have a standard User defined formats Standard format for definingformat format context units and facts.Express single Relations Express Multiple Relations Only presentation Other additional relationships relationship 6
  8. 8. XBRL Taxonomy & Instance Architecture XBRL Data XBRL Data Definition XBRL Data Relationships 8
  9. 9. XBRL documents InstanceTaxonomy document ABC Company Ltd. Rs.(000’s) Balance Sheet as at 31-03-2009 A Segment B Segment C Segment Group Fixed assets 30 35 33 98 Investments 18 22 20 60 Deferred tax assets 7 8 12 27 Current assets: Cash and cash equivalents 13 16 23 52 Sundry debtors 17 18 18 53 Inventories* 20 21 19 60 Total current assets 50 55 60 165 Total assets 105 120 125 350 * Includes inventories on acquisition of textile segment 9
  10. 10. Overview of XBRL Specifications XBRL 2.1 Specification • Recommendation – 2003-12-31 corrected Errata – 2008 • Some technical files • xbrl-instance-2003-12-31.xsd • xbrl-linkbase-2003-12-31.xsd • xl-2003-12-31.xsd • xlink – 2003-12-31.xsd Conformance suite • More than 200 test sets to verify the applications process the taxonomy correctly FRTA and FRIS • Financial reporting taxonomy architecture • Financial reporting instance standards • Guidelines on best reporting practices • Both have different conformance suites 10
  11. 11. Overview of XBRL Specifications Dimension specification • Recommendation – 2006-09-18 • Modular extension of 2.1 where in dimensions are used • Some technical files • xbrldt-2005.xsd • xbrldi-2006.xsd Formula specification • Recommendation – 2009 • Modular extension of 2.1 where in formulae are used • Number of technical files 11
  12. 12. TAXONOMY 12
  13. 13. Taxonomy Taxonomy word is derived from: tassein–classification nomos–law/science Taxonomy means “Science of Classification”• In XBRL, Taxonomy is “systematic classification of business and financial terms” 13
  14. 14. Role of taxonomies Standardization Facilitates Understanding of the Data System Enables Reuse, Data Exchange and Comparisons 14
  15. 15. Taxonomy ComponentsXBRL Taxonomy is made up of –SchemaDictionary of business and financial terms, along with their XBRL propertiesLinkbasesInterrelationships amongst the terms defined in the schema 15
  16. 16. Schema• Similar to XML schema• File with .xsd extension• Contains attributes describing the whole document• Contains the definition of financial terms and their attributes• Refers to the Linkbases 16
  17. 17. SchemaNamespace – Purpose of declaring Namespace – Namespace Prefix Indian GAAP Taxonomy • Namespace : • Prefix : in-gaap SEBI MF Taxonomy • Namespace : • Prefix : sebi 17
  18. 18. Schema : ElementMeaning An element is a business or a financial concept which is defined according to XBRL specifications.Example – Data points reported in Financial Statements – Data points reported in Notes to Accounts Basic Attributes Financial Reporting XBRL Concept Element Relationship To other Elements & Information 18
  19. 19. Schema : Element element name • According to LC3 Rules • Preferable to have Style Guide • Some of the principles that should be followed while defining the elements element id • Element id and element name should be unique • Best practice according to FRTA is to use prefix_nameConcept Element Name Element IDLoans and Advances LoansAdvances frs-gp_LoansAdvancesShort Term Borrowings ShortTermBorrowings us-gaap_ShortTermBorrowingsCash and Cash Equivalents CashCashEquivalents ifrs-gp_CashCashEquivalents 19
  20. 20. Schema: Element AttributesAttributes• Data Type• Period Type• Balance Type• Abstract• Nillable• Substitution Group 20
  21. 21. Element Attribute :Data TypeData value that is allowed for elementdefined – Monetary – String – Shares – Decimal – Pure – Other 21
  22. 22. Data Types – Few examplesData type ExamplesMonetary Sales Current liabilities ReservesString Name of employee Inventory policyShares Basic number of shares outstanding Shares held by managing directorDecimal Office floor area Number of employees 22
  23. 23. Element Attribute : Period TypeAttribute that specifies whether anelements is measured “As on a point oftime” or “Over a period of time”• Instant• Duration 23
  24. 24. Element Attribute : Balance TypeType of balance that is applicable to theMonetary item – Debit – Credit  Exceptions 24
  25. 25. Element Attribute : AbstractExplains whether element will hold value in the instance documents – „abstract = false‟ – „abstract = true‟  Usage 25
  26. 26. Element Attribute : NillableDetermines whether the element is mandatory to be reported or not – „nillable = false‟ – „nillable = true‟By default, nillable is defined as „true‟ 26
  27. 27. Element Attribute : Substitution Group• Item – Element representing single fact• Tuple – Element representing multiple facts• Dimension – Element representing dimensional information• Hypercube – Element grouping dimensional information 27
  28. 28. Schema: Element Attributes Element name and element ID • Defines concepts uniquely in the way system can interpret Data type • Values expected for concepts (monetary, percentage, shares etc.) Period type • When the concept is measured – as at a point of time or over a period of time Nillable • Determines whether the element is mandatory 28
  29. 29. Schema: Element Attributes Balance type • Accounting balance of concept i.e. debit or credit Abstract • Determines whether an element can or cannot hold value in instance document Substitution group • Classes as defined by specification to enable system understand, process and validate information. 29
  30. 30. Schema 30
  31. 31. Quiz Time!!!For the “Element :Outstanding Expenses”, what would be the value of the following attributes? DataType : _____ (String, Shares, Monetary) SubsitutionGroup : _____ (Item, Tuple) BalanceType : _____ (Debit, Credit) periodType : _____ (Instant, Duration) Nillable : _____ (True, False) Abstract : _____ (True, False) 31
  32. 32. Quiz Time!!!For the “Element :Number of equity shares outstanding”, what would be the value of the following attributes? DataType : _____ (String, Shares, Monetary) SubsitutionGroup : _____ (Item, Tuple) BalanceType : _____ (Debit, Credit) periodType : _____ (Instant, Duration) Nillable : _____ (True, False) Abstract : _____ (True, False) 32
  33. 33. Quiz Time!!!For the “Element :Interest expense”, what would be the value of the following attributes? DataType : _____ (String, Shares, Monetary) SubsitutionGroup : _____ (Item, Tuple) BalanceType : _____ (Debit, Credit) periodType : _____ (Instant, Duration) Nillable : _____ (True, False) Abstract : _____ (True, False) 33
  34. 34. Quiz Time!!!State whether the following statements are true or false1. Earnings per share is normally defined as having share item data type2. Number of employees in company is defined as abstract=false3. Element name consists of a prefix followed by an underscore followed by element id.4. Accumulated depreciation will have period type as duration 34
  35. 35. Exercise For the given sample set of data, define the elements and their XBRL properties in the schema file 35
  36. 36. LINKBASES 36
  37. 37. LinkbasesLinkbases are taxonomy components whichdefine relationships between elements and linkthem to external resources • Interrelationships between elements • References to regulatory material • Human readable definitions of elements • Six types of linkbases 37
  38. 38. Types of Linkbases Describing • Presentation Linkbase Relationship • Calculation Linkbase amongst • Definition Linkbase • Formula Linkbase elements Linking to • Reference Linkbase external • Label Linkbase sources 38 38
  39. 39. Linkbase : Basic terminologyExtended links :• Logical grouping of elements.• Linkbase is a collection of extended linksLocators :• Point to the concepts that are to be relatedArc :• Used to connect two or more locatorsArc role:• Functionality of the arc joining the locators 39
  40. 40. Presentation Linkbase Element Order AssetsAbstract Assets FixedAssets 1 Abstract CurrentAssetsAbstract 2 Cash 1 AccountsReceivable 2 Current FixedAssets Assets Assets Inventories 3 Abstract CurrentAssets 4 Assets 3 Accounts Current Cash Inventories Receivable Assets  Present Structure  Headers are abstract  Preferred role 40
  41. 41. Calculation Linkbase Element Order Weight Assets Assets FixedAssets 1 1 CurrentAssets 2 1 Cash 1 1 AccountsReceivable 2 1 Inventories 3 1 FixedAssets CurrentAssets • Weights = +1 / -1 • Cross context calculations • Opposite balance attributes Accounts – credit element + credit element Cash Inventories Receivable – credit element –debit element – debit element + debit element – debit element –credit element 41
  42. 42. Presentation v/s Calculation linkbase Presentation Link Calculation Link Element Order Element Order WeightAssetsAbstract Assets FixedAssets 1 FixedAssets 1 1 CurrentAssetsAbstract 2 CurrentAssets 2 1 Cash 1 Cash 1 1 AccountsReceivable 2 AccountsReceivable 2 1 Inventories 3 Inventories 3 1 CurrentAssets 4 Assets 3 42
  43. 43. Definition Linkbase• Defines additional relationships• If dimensions are required to be modeled in the taxonomy, it is done with the definition link.• Four standard types of roles (Other than dimensional) o General – Special o Essence – Alias o Requires – Elements o Similar – Tuples 43
  44. 44. Label Linkbase• Some elements can be unreadable StatementThatFinancialStatementsAndCorrspondingFiguresForPr eviousPeriodsHaveBeenRestatedForChangesInPurchasingPower Financial statements restated for purchasing power changes• Element labels Multilingual Differentiation done by language attribute of XML Multicontextual Differentiation done by xlink:role 44
  45. 45. Label Linkbase label ExamplesMultilingual labels: standard label Earnings (Loss) in Foreign CurrencyAssets, total – English terse label Earnings (Loss) ForexActifs, total – French verbose label Earnings (Loss) in Foreign CurrencyActivos, total – Spanish of the Entity positive label Earnings in Foreign Currency negative label Loss in Foreign Currency total label Total Earnings (Loss) in ForeignMulti contextual labels: Currency negated label - period start label Cash and Cash Equivalents,General reserve, beginning balance Beginning BalanceGeneral reserve, ending balance period end label Cash and Cash Equivalents, Ending Balance documentation - 45
  46. 46. Reference LinkbasedefinitionRef • Storethe source that describe the associated• Reference for defining the meaning of the element external regulation or standard • Present relationship between elements anddisclosureRef external regulations or standards • Relates business concepts to Metadata• Reference for disclosure as required by the regulation or the standard relating to the concept.presentationRef Reference parts Use• Reference to a document which explains how and where the element should be presented in terms of its placement IssueDate Issue date of the standard or interpretation and labelling Name Name of authoritive literature eg. IAS, IFRS etcmeasurementRef Number Number of the standard or interpretation Section Sections of standard or interpretation.• Reference provide explanations about what determines the value of an element and how it should be calculated Paragraph Paragraph in the standard Subparagraph Subparagraph of a paragraphcommonPracticeRef Clause Subcomponent of a sub paragraph Subclause Subcomponent of a clause in a paragraph• Reference for common practice disclosure relating to the concept. 46
  47. 47. Linkbases : Arcroles Linkbase Arc role used Presentation parent-child Calculation summation-item Definition* general-special essence-alias similar-tuples requires-elements Label concept-label Reference concept-reference* Other than for dimensional relationships 47
  48. 48. Linkbases Presentation Linkbase • Defines how concepts should be presented & displayed Calculation Linkbase • Arithmetical relationship between the concepts Definition Linkbase • Defines additional relationship between elements 48
  49. 49. Linkbases Formula Linkbase • Advanced and user defined mathematical and logical relationships between concepts Label Linkbase • Provide human readable information about concepts Reference Linkbase • Contains the references to literature 49
  50. 50. Quiz Time!!!Fill in the blanks –1. The arc role used in presentation linkbase is _________.2. ________ plays a very important role in calculation linkbase.3. In order to establish a relationship between two similar concepts _______ arc role is used.4. _________ plays a very important role in presentation linkbase.5. The elements in calculation linkbase must have identical ______ type. 50
  51. 51. Exercise For the same given sample set of data, define the calculation, presentation and label linkbase 51
  53. 53. Steps in taxonomy buildingSteps in taxonomy building• Analysis and Element identification• Data modeling and taxonomy designing• Validating and Testing taxonomy 53
  54. 54. Analysis and Element identification• Understanding the business requirements• Analyzing the relevant regulatory literature and guidelines to understand the reporting requirements – E.g. In case of Indian GAAP taxonomy, the Companies Act, Accounting standards, Listing agreements need to be analyzed• Identifying the data elements to be reported• Rationalizing the reporting requirements – Same elements appearing in the different reports need to be defined only once 54
  55. 55. Data modeling and taxonomy designing• Defining the XBRL properties of the elements• Defining the interrelationship between the elements identified• Structuring the taxonomy as per the XBRL specifications – Nature and properties of elements – Grouping the elements – Using dimensions• Creating the taxonomy documents 55
  56. 56. Validating and Testing taxonomy• Validating the taxonomy – XBRL Specifications – Elements and the interrelationships• Testing the taxonomy – Testing for fitness – Creating sample instance documents 56
  57. 57. Taxonomy Designing TeamTeam ideally comprises of – Domain experts – Technology experts 57
  58. 58. Few XBRL Taxonomies around the world..• US-GAAP 2009 / 2010 – Financial Reporting to US SEC, Mutual Fund Risk Return Summary Taxonomy• IFRS 2010 – Represents IFRS 2010• FinRep & Corep – Financial Reporting & BASEL II based Reporting in CEBS*Indian Taxonomies• Indian GAAP – C&I – Banking• RBI – Basel II – Liquidity Returns (Form A) – Currency Position (GPB)• SEBI – Mutual fund taxonomy 58
  60. 60. FRTA - Overview• Financial Reporting Taxonomies Architecture• Describes the architecture of financial reporting taxonomies• It also provides a guidance for designing and developing taxonomies 60
  61. 61. Structure of FRTA Extensions Layer: Guidance on how to organise sets of taxonomies and linkbases Discoverable Taxonomy Set Layer: Features and properties of taxonomy schemas and linkbases Relationship Layer: Usage of definition, calculation and presentation for modeling Concept Layer: Elements, links, arcs, labels, references and tuples XML, Namespaces, XML Schema and XML Linking Language (Xlink) Layers of the Financial Reporting Taxonomy Architecture 61
  62. 62. FRTA : Rules for ConceptsSchema must define only one concept for each separately defined class of factsContextual and measurement information Must not result in different elements in ataxonomyConcept names should adhere to the LC3 conventionLabel Camel Case ConcatenationElement names MUST be based on an appropriate presentation label for the element.Label changes in subsequent version of the taxonomy, should not result in the change of element name.First character of the element should not be underscore (_).The first character of the element name must be capitalized.Connective words like and , the, for, which can be omitted if required.Special characters should not be used: ( )*+[]?/^{}|@ # % ^ = ~ ` “ ‘ ; : , <> & $ ₤ €Element names should not exceed 256 characters 62
  63. 63. FRTA : Rules for ConceptsElement declarations must contain an “id” attribute beginning with prefix followed byan underscore and then element nameThe value of the “nillable” attribute should be true for all conceptsMonetary concept declarations must use the balance attributeAll documentation of a concept must be contained in XBRL linkbasesA concept must have a label with the standard label role 63
  64. 64. FRTA : Rules for Presentation LinkbaseA linkbase may contain any number of sets of extended-type links partitioned by roleA concept meant to be ordered among its siblings must have a parent-child presentationrelationship from its parent concept.Child having the same parent in extended links with the same extended link role shouldprovide preferred labels.Abstract elements may be used as a heading to group concepts for presentation.In movement analysis only one element must be defined for beginning, adjusted andending balances , each with a different preferred label 64
  65. 65. FRTA : Rules for Calculation LinkbaseAll concepts having additive relationship in all equal contexts should have calculationrelationships.Alternative calculation relationships for the same item must be in extended-type linkswith distinct rolesTaxonomies should define an extensive set of subtotal concepts to limit the extensionsThe declarations of elements in calculation linkbase must have identical values of theperiodType attribute.The source & target concepts of summation-item relations must be distinct 65
  66. 66. THANK YOU!!! 66