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XBRL- A catalyst for better reporting by liv apneseth watson new delhi jan 5 2011

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XBRL Catalyst for Better Reporting By Liv Apneseth Watson New Delhi Jan 5 2011

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XBRL- A catalyst for better reporting by liv apneseth watson new delhi jan 5 2011

  1. 1. XBRL: Catalyst for Better Reporting Presented by: Liv Apneseth Watson Founding Member of XBRL International Co-Chair XBRL International Membership Committee WebFilings, Executive Advisor to the office of the CEO
  2. 2. Accessing Reporting Data Today
  3. 3. XBRL & Investor The new data needs to be analyzed for what it says: 1. How big are revenues? 2. How big are profits? 3. How big are profit margins? The new data must be compared to earlier data to answer these questions: 1. How fast are revenues growing? 2. How fast are profits growing? 3. How are margins changing? 4. How are growth rates changing? The company’s results must be related to other companies’ results: 1. How is this company doing relative to its competitors? 2. How is this company doing relative to other places the investor can place his or her money?   How do they do that today? AS A RESULT
  4. 4. The Information Overload Challenge… “… in this networked world, there is a need for greater flow of knowledge across boundaries. …. knowledge needs structure - without structure you cannot retrieve it efficiently and you cannot personalize …the Internet has facilitated access to information, but complicated the task of identifying relevant knowledge”
  5. 5. Standardization Presentation Cash & Cash Equivalents News & Media and other date set References GAAP I.2.(a) Instructions Ad Hoc disclosures Label cashCashEquivalentsAndShortTermInvestments Calculation Cash = Currency + Deposits FormulasCash ≥ 0 Contexts US $ FY2004 Budgeted Validation Adding Meaning to Electronic Business Data XBRL – The Language of Financial and Business Reporting Presentation Comptant et Comptant Equivalents Presentation 現金及び現金等価物 Presentation Kas en Geldmiddelen Presentation Деньги и их эквиваленты Presentation Гроші та їх еквіваленти Presentation 现金与现金等价物 Presentation Geld & Geld nahe Mittel XBRL Item XBRL Item
  6. 6. Semantic Risk Analysis Demand Side (Output) Supply Side (Input) Trading Data Data Network VPC XBRL Data Model Network Policy Fabric VPC News and Sentiment Data Application Network VPC Economic Data Via a single connection VPC
  7. 7. Demand Driven “The adoption of eXtensible Business Reporting Language (XBRL) for financial reporting holds great promise as a source of efficiency, transparency, and comparability in the delivery of financial information.”
  8. 8. Shareholders versus Stakeholders
  9. 9. GRI Source: http://www.globalreporting.org/ReportingFramework/G3Guidelines/XBRL/
  10. 10. XBRL and Integrated Reporting Free E-Book http://integratedreporting.org/ http://www.hbs.edu/environment/docs/The%20Landscape%20of%20Integrated%20Reporting.pdf “With XBRL already being used by millions of companies in North America, Asia, Latin America, South Africa, and Europe to report financial information to regulators, investors, analysts and others, it has been established as the de facto standard for financial reporting. XBRL is the logical choice for supplementary data sets such as ESG/sustainability information and the only logical choice to achieve usable integrated reporting that can be easily discoverable, reusable, consistent and reliable across geographies, currencies, markets and industry sectors. “ ----Liv Watson, Executive Advisor, WebFilings and Brad Monterio is Managing Director of Colcomgroup, Inc.,
  11. 11. Management Teams (CEO, CFO/Finance, Operations, Sales & Marketing, IR) DASHBOARDS & OUTPUT One Integrated Reporting Process Management Teams (CEO, CFO/Finance, Operations, Sales & Marketing, IR) ONE REPORT Accountants Accountants Attorneys THE CLOUD SUPPORT Attorneys Other External Advisors Other External Advisors ONE DATA SET Access Controlsand Permissioning Other Stakeholders (e.g., Board, Investors, Regulators)
  12. 12. You’re Only as Green as Your Supply Chain
  13. 13. And finally ………… XBRL NEED YOUR HELP!! “Now we need your help. We need a commitment of resources—both skilled volunteers and financial support—to execute on these strategic initiatives. XII cannot make these changes alone; your involvement is crucial to achieving our common goals.” http://www.xbrl.org/xsbstrategy/
  14. 14. Concluding remarks! If you do not think that XBRL is something that will impact you sooner rather than later, you better keep your fingers crossed that your competitor has the same attitude!
  15. 15. On behalf of XBRL I like to say thank you to ICAI for all the help promoting XBRL in India!
  16. 16. Liv Apneseth Watson Liv A. Watson is an Executive Advisor to WebFilings, LLC She is one of the founders of the XBRL Intentional Consortium. She has over 20 years of experience, in finding innovative ways to bring together technology, accounting and financial and business reporting. Working globally with leading market regulators, accounting associations and institutions, Ms. Watson has traveled to over 90countries presented XBRL to a wide range of audiences from international standards bodies to Fortune 1000 companies and speaks with authority about its benefits, potential applications, and broad adoption. Liv authored one of IMA's most successful CPE courses "Accounting System Technology for the 21st Century". She has also published several articles on for international publications and journals including Harvard Business Review, Strategic Finance, Financial Executives, and many others . She also used to write a monthly column of financial and business reporting trends for CPA2Biz. She is the co‐author and contributor author to several of books including “XBRL for Dummies” and Governance, Risk, and Compliance Handbook published by Wiley. WebFilings, LLC Member of the Board of Directors, MediaTenor Member of IASC Foundation XBRL Advisory Council Vice Chair of the Institute of Management Accountants XBRL Working Group Chair of XBRL International Membership Working Group Advisory Board Member – University of Southern Indiana Advisory Board Member – University of Albany, New York International Journal of Disclosure and Governance Editorial Advisory Board Member Past - Member of the Board of Directors, Institute of Management Accountants (IMA) Past 10 years as an XBRL International Steering Committee Member Past Vice Chair of XBRL International, Inc Past Chair of the XBRL US Adoption Committee Past Vice Chair of the XBRL US Jurisdiction

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