Ima national june 2013 Find Accounting in XBRL


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Ima national june 2013 Find Accounting in XBRL

  1. 1. 1IMA’s 94th Annual Conference © 2013 Institute of Management Accountants. All rights reserved. Find the Accounting in XBRL Accounting Discovery Available for Free Presenter: Neal J. Hannon, CMA Executive Director, WebPro Missouri Consulting
  2. 2. Three Learning Objectives • Identify the Accounting Underlying XBRL • Expand the Digital Perspective of Accountants • Demonstrate Free Online Tools for Accountants 2IMA’s 94th Annual Conference © 2013 Institute of Management Accountants. All rights reserved.
  3. 3. XBRL Committee Encouraged by SEC Chairman Arthur Levitt's Recommendation That It be Expanded and Used by Investors and Companies Business Wire, Oct 30, 2000 Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 30, 2000 In remarks last week, Arthur Levitt, Chairman of the Securities Exchange Commission (SEC), acknowledged XBRL and recommended its further development to turn financial statements into meaningful information for investors using this new revolutionary technology. Chairman Levitt's remarks were made at the American Institute of Certified Public Accountants' (AICPA) Fall Council Meeting in Las Vegas, Nevada on October 24, 2000. First SEC Mention of XBRL
  4. 4. Fr. SEC Chief Accountant Lynn Turner “I support XBRL. In fact, I wrote the comment for Chairman Levitt’s speech. But please tell everyone you talk to about XBRL that you must Get the Accounting Right!”
  5. 5. Accounting Goes Digital
  6. 6. Do You Remember Vinyl Records? Had to Play from start to finish Record could be damaged if you attempted to play a specific track.
  7. 7. Likewise , Financial statements, notes and disclosures.. Vinyl Records And Disclosures
  8. 8. The technology dramatically changed how we relate to music and gave us the power to select individual cuts suited to musical tastes and preferences Then Came Digital Music •Individual Tracks Separated •Choose Your Own Order for Play •Start and Stop
  9. 9. What can digital data do?
  10. 10.
  11. 11. George Martin and the Beatles  The task  Collect, identify, classify the entire set of music created by the Beatles  Using master tapes, break out the riffs  Re-configure music into digital sound bytes  The results  New Music.. The Beatles Love Album
  12. 12.
  13. 13. The SEC and Interactive Data  The task  Collect, identify, classify the entire set of GAAP created by US Authoritative Sources of GAAP  Using financial statement hierarchy, break out the elements into an XBRL taxonomy  Re-configure accounting into digital bytes  The results  New Filings.. The SEC Interactive Data initiative in XBRL
  14. 14. Digital Data Fundamentally Changes the paper-based reporting paradigm
  15. 15. CAN YOU SPELL….. XBRL 16
  16. 16. External Financial Reporting Business Operations Internal Financial Reporting Investment, Lending, Regulation Processes Economic Policymaking Participants Auditors Trading Partners Investors Financial Publishers and Data Aggregators Regulators Software Vendors Management Accountants Companies Central Banks XBRLXBRL XBRLXBRL XBRL for G/L Journal Entry Reporting XBRL for Financial Statements Scope and Role of XBRL
  17. 17. Who is using XBRL ? Kim Wallin, Controller, State of Nevada and Former Chair, IMA  In 2007, Wallin begin considering XBRL as a solution to grant reporting, and when the Department of Agriculture asked for help with their reporting, Deloitte was brought in and two of Agriculture's grants were selected for the XBRL pilot.
  18. 18. "The goals were timely and accurate data,“ said Wallin, "stronger internal controls, reduced costs, a standardized system of seamless data exchange, business processes and data elements. XBRL met all of those goals."
  19. 19. US GAAP Taxonomy Development Effort FAF, XBRL US GAAP, SEC Regulations Codification project Audit check lists Internal and public testing XBRL protocols Taxonomy Release CFO Investor Relations Current Reporting Practice Key concept: Create a Data model Analysts Investors
  20. 20. Accounting.. Hidden for Decades EXPOSED!
  21. 21. Let’s Find Out Where the Accounting is Hiding
  22. 22. The Touchstone SEC Verification Suite provides independent assurance for your XBRL filings XBRL CLOUD’s EDGAR DASHBOARD
  23. 23. Paper Based US GAAP
  24. 24. Digitizing Accounting 1. US GAAP 2. Examples of Financial Reporting 3. External Auditor check lists 4. Expert Financial Preparers Then chop into consumable pieces Gather
  25. 25. 30 Standard Label Standard label in English: Net Revenue Standard label in XBRL: us-gaap:SalesRevenueServicesNet
  26. 26. 31 Definition
  27. 27. 32 Authoritative Reference
  28. 28. The Meta Data Counts  So.. If a filing contains a label that is further described by a definition and a reference, the computer referencing the item will have all three pieces of information as discoverable meta data  Label  Definition  Reference
  29. 29. Principles GAAP accommodates variation in applied accounting methods as long as the methods generally conform to GAAP’s set of principles….. This drives computers crazy!
  30. 30. 35 Let’s Look at Accounting! Accounting can be found in the taxonomy • Accounting structure is in the linkbases • Definitions are explicit, not implied • Authoritative literature is linked • Taxonomy elements are highly vetted by FASB, SEC, Public reviews
  31. 31. 36
  32. 32. 37 •XBRL Cloud’s EDGAR Dashboard: Features a quick guide to recent SEC filings including and in-depth look at the accounting definitions and authoritative literature backing each element chosen. Use the interactive viewer to see the accounting. All company filings are visible which allows you to see how companies are mapping actual reporting to the official US GAAP taxonomy. •WebFiling’s Taxonomy Analyzer: Type in an accounting concept and you will see all the XBRL elements associated with the concept, a view of where it appears in financial statements and a method for seeing what other elements in the taxonomy are closely related. In the comparative mode, the taxonomy analyzer allows you to view the accounting treatments of up to five companies side by side. Free Accounting Tools!
  33. 33. 38 •The BRIX Project app for the IPhone. This tool can be used to do some very cool things. First, you can look up accounting concepts, and then you can ask the app to find companies that are using the concept in actual filings. Pull out your smart phone and dial up the accounting treatment of your choice. •ASKaRef is an online tool for accountants to discover the link between an accounting concept and the XBRL definition and the ASC. This very easy to use tool has the US GAAP 2012 taxonomy as the base for finding the accounting linkage. The beauty of the tool is how quickly you can find the ASC that backs up the taxonomy. Straight forward link from accounting concept to taxonomy element to ASC. No actual financial reporting can be seen with this tool. More Accounting tools!
  34. 34. 39 •XBRL.US’s taxonomy viewer was developed by CoreFilings and features a pre-load of the world’s most popular taxonomies. Curious about IFRS reporting? The Yeti tool will allow you to load the IFRS taxonomy and explore concepts. A preview of the new XBRL US GAAP taxonomy (SEC pending) is now available. •FASB’s Implementation guides and reference guide: From the website, “The objective of the U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation and Reference Guides is to provide preparers with additional insight and supplemental guidance for utilizing the UGT as they create their XBRL documents.” The guide can also be used by non- taxonomy accountants to discover how to implement new ASC pronouncements. •XBRL.US XBRL Challenge entries. For the past three years, XBRL US and sponsors have offered a challenge to the financial community to create innovative tools using XBRL. The results can be found on the link above. An example of a winning entry is the 2012 winner CalcBench, a free online benchmarking and industry analysis tool. Even More Tools!
  35. 35. 40 US GAAP Taxonomy 2013
  36. 36. 41 FASB’s XBRL
  37. 37. 42 Path to the Taxonomy's Accounting •; click on FASB XBRL •Click on “taxonomy view”, then ‘Entire 2013 US GAAP Financial Reporting Taxonomy’ Once there, type “cash” into search box
  38. 38. 43 Yeti – A Taxonomy Reader
  39. 39. 44 SEC’s Interactive Data Site
  40. 40. 45 XBRL US Site
  41. 41. 46 XBRL Cloud’s ClearScore Verification
  42. 42. 47 WebFilings Taxonomy Analyzer
  43. 43. 48 The Codification of US GAAP US GAAP was contained in over 12 publications of official and semi- official GAAP prior to the 2005-7 effort to place all US GAAP into an electronic index called ACS. Access to the ACS is either public or professional. Professional access is a paid service.
  44. 44. 49 Accounting Standards Codification
  45. 45. 50
  46. 46. 51
  47. 47. 52 FASB Implementation Guides
  48. 48. 53 OCI Guide – Taxonomy Elements
  49. 49. 54 Ask A
  50. 50. 55 XBRL US Smart Phone App
  51. 51. I Would like to thank… Mike Willis, Eric Cohen PWC Glen Gray Cal State Northridge Liv Watson WebFilings, Roger Debreceny U of Hawaii Charlie Hoffman Consultant Paul Penler E&Y Zane Swanson University of Central Oklahoma Walter Hamscher S.E.C. 56
  52. 52. Three Key Takeaways • Accounting is the Foundation for Digital Business Reporting • Every Accountant Can Take Advantage of the Accounting in XBRL • Free Tools are Available, Use Them! 57IMA’s 94th Annual Conference © 2013 Institute of Management Accountants. All rights reserved.
  53. 53. 58 Questions? Thank You