The document discusses the benefits of XBRL (eXtensible Business Reporting Language), an open standard for exchanging business information. It argues that XBRL can increase transparency in financial markets by making reported data more reusable, searchable, and linkable. By standardizing how data is tagged and linked, XBRL allows for automated analysis and social sharing of analytical models and insights. Adopting XBRL brings greater transparency to both company disclosures and the analytical processes used to evaluate them.
Liv watson icgfm xbrl a language of the government world englishicgfmconference
Ā
XBRLāA Language of the Government 2.0 World
Liv Apneseth Watson, Senior Executive, IRIS Business Services
Understanding what XBRL is and how it is changing financial reporting will be the focus of this session
The Age of Artificial Intelligence and the Reinvention of the Tax Function VasudhaSharma33
Ā
As a tax professional working in the industry, experts suggest AI will redefine your role, optimize productivity and open doors to more satisfying - and valuable - work.
Tax and accounting professionals are already seeing the benefit of new AI-driven opportunities. Routine tasks (such as invoicing) are increasingly automated. As well, real-time views of workflows thanks to cloud technology makes identifying productivity risks and spotlighting new opportunities easier than ever before.
Your role as a tax professional in industry is on the verge of transformation as well. AI might be a disruptive force, but its power can be harnessed to enhance the corporate tax function in new and innovative ways. With the help of advanced technologies, youāll be able to more readily predict outcomes, identify and troubleshoot problems as they occur, and play a leading role in building strategies for growth. AI-based tools will lessen the burden of data management and analysis, and industry tax professionals will be empowered with deeper data-driven insights that help them steer the business forward with confidence and clarity.
Liv watson icgfm xbrl a language of the government world englishicgfmconference
Ā
XBRLāA Language of the Government 2.0 World
Liv Apneseth Watson, Senior Executive, IRIS Business Services
Understanding what XBRL is and how it is changing financial reporting will be the focus of this session
The Age of Artificial Intelligence and the Reinvention of the Tax Function VasudhaSharma33
Ā
As a tax professional working in the industry, experts suggest AI will redefine your role, optimize productivity and open doors to more satisfying - and valuable - work.
Tax and accounting professionals are already seeing the benefit of new AI-driven opportunities. Routine tasks (such as invoicing) are increasingly automated. As well, real-time views of workflows thanks to cloud technology makes identifying productivity risks and spotlighting new opportunities easier than ever before.
Your role as a tax professional in industry is on the verge of transformation as well. AI might be a disruptive force, but its power can be harnessed to enhance the corporate tax function in new and innovative ways. With the help of advanced technologies, youāll be able to more readily predict outcomes, identify and troubleshoot problems as they occur, and play a leading role in building strategies for growth. AI-based tools will lessen the burden of data management and analysis, and industry tax professionals will be empowered with deeper data-driven insights that help them steer the business forward with confidence and clarity.
Tech M&A Monthly - Q3 Quarterly Report October 2013Corum Group
Ā
Q3 2013 came to a remarkable close in the tech M&A arena--this report included our in depth quarterly report on the deals, trends and valuations, plus what it all means to technology CEOs, owners and investors considering their M&A options.
In addition to a detailed breakdown of the six software and related technology markets, and the 26 subsectors, the Corum team discussed the latest news from the world of tech & finance, with a look at unusual deals--with Blackberry acquired by an insurance company, we look at other buyers you might not think of; the JOBS Act--with Twitter taking advantage and some of the fundraising provisions coming into effect, how is the impact on tech M&A shaping up? And, finally, Corum President Nat Burgess provides his thoughts on why he thinks this that Tech M&A is currently a seller's market.
In our latest piece, we share unique perspectives on how artificial intelligence is amplifying human potential and reshaping business. This article explore 3 fundamental questions:
ļ¶ How will AI shift the expectations of my customers?
ļ¶ How will AI transform the way my competitors run their businesses?
ļ¶ How should my company respond to AI?
While innovative new technologies have been very efficient in combating traditional fraud, our research has found that digital technologies are also giving rise to new types of digital tax fraud: the increase in the number of e-filings of tax returns across geographies is driving new types of fraud using identity theft as the basis.
Another type of fraud taking shape is Zapping ā using software programs to automatically skim cash from electronic cash registers (ECR) or point of sale systems.
Similarly, the growing usage of third-party payroll processors is opening up a whole new avenue of fraud where unscrupulous processors siphon off taxes due to the state.
Our analysis of these new digital tax frauds shows that inaction is not an option for tax authorities. We have modelled the evolution of tax fraud, taking into account new incidents of fraud enabled by digital technologies. Our findings are sobering for tax authorities. In a scenario where tax authorities continue to fight new tax fraud with conventional tools, we estimate digital tax fraud in the US will rise from $32 billion to $49 billion by 2020.
To combat this staggering scale of fraud, conventional methods are too slow for the digital age. Tax authorities must move away from an incremental, piecemeal approach to a much more comprehensive transformative line of attack with a long-term vision, roadmap and multifaceted solutions involving people, processes and technology.
What is the impact of inaction of tax authorities to rein in new types of digital tax fraud? How can analytics be used as an effective weapon to fight against digital tax fraud.
In this edition of our Work Ahead study, we explore the increasing primacy of digital within the context of the COVID-19 pandemic and assess whatās next for the future of work.
Nine Business & Technology Trends impacting 2018 and beyond.Dileep Srinivasan
Ā
This presentation discusses the global business and technology trends that will shape the coming decade. With AI, Robotics and Blockchain penetrating every industry, there will be far reaching implications to countries worldwide.
We could also see new leaders worldwide in the next decade, shifting the balance of power from developed countries to others.
The Current Relevance of Materiality: Voluntary Reporting, Fraud, Blockchain ...inventionjournals
Ā
A literature review is performed on the current context of materiality. The concept of materiality is used mainly as a financial measure. In current company environment financial measures are only a part of the application of materiality levels. The current relevance of materiality is discussed based on the developments of voluntary reporting, fraud, blockchain and co-operative compliance. It is concluded whether materiality is outdated in the current company context.
Industry and firm profile- MBA course papergirish0984
Ā
The objective of this document is to study a particular industry and a firm within that industry. This document describes the Financial Services Industry and JP Morgan bank.
The results of our latest study on āSmart data transformation,ā carried out with Fraunhofer FIT, are here. In this special research report, we wanted to understand the business benefits, challenges and success factors around this topic, as well as identify key needs to facilitate the effective implementation of smart data transformation.
Investments in Compliance and Legal Automation and the AI FactorVladimir Vereskoun
Ā
Presented by Vladimir Vereskoun at the Techlawfest conference in Singapore on 3 April 2018. The slides describe how to market a legaltech or a regtech startup to avoid looking "niche" and the AI factor.
Extensible business reporting language xbrl a new dimension in financial r...Sara Porras
Ā
Enofe, A., & Amaria, P. (2011). EXTENSIBLE BUSINESS REPORTING LANGUAGE XBRL: A NEW DIMENSION IN FINANCIAL REPORTING. International Journal Of Business, Accounting, & Finance, 5(1), 78-90.
Tomado de: Base de datos Universidad Javeriana Business Source Complete (EbscoHost)
New Opportunities for Technology-Driven Business TransformationJoseph M Bradley
Ā
The core disruptive technologies of mobile Internet, business analytics, social networking,
and cloud computing will transform the preferred IT delivery and deployment models for
global enterprises.
In our latest white paper, our expert authors share insights on why an integrated, real-time approach is key to business planning in the digital age. This special report is the great work of our supply chain experts, who are leading some of our firmās most innovative thinking and solutions with top global clients.
Learn About:
ļ¶ The evolution of planning capabilities in the enterprise
ļ¶ Why an integrated business planning (IBP) framework should include end-to-end business processes across the organization
ļ¶ A view into the different maturity levels an organization can achieve and strategies for developing a digital-driven IBP framework
ļ¶ How companies can get started and accelerate their journey to advanced business planning
HOW XBRL WILL DRAMATICALLY IMPROVE: REPORTING AND CONTROL PROCESSESWorkiva
Ā
Investors who risk their hard-earned cash in equities need access to timely, relevant, and accurate financial and business information. Most of this information originates with the companies whose stocks they own. For the capital markets to operate most efficiently, information about public companies must be understandable, accessible, accurate and, most importantly, trusted by market participants. In the current state of information access, there are multiple problems in making this level of clarity, accuracy and public trust a reality.
Tech M&A Monthly - Q3 Quarterly Report October 2013Corum Group
Ā
Q3 2013 came to a remarkable close in the tech M&A arena--this report included our in depth quarterly report on the deals, trends and valuations, plus what it all means to technology CEOs, owners and investors considering their M&A options.
In addition to a detailed breakdown of the six software and related technology markets, and the 26 subsectors, the Corum team discussed the latest news from the world of tech & finance, with a look at unusual deals--with Blackberry acquired by an insurance company, we look at other buyers you might not think of; the JOBS Act--with Twitter taking advantage and some of the fundraising provisions coming into effect, how is the impact on tech M&A shaping up? And, finally, Corum President Nat Burgess provides his thoughts on why he thinks this that Tech M&A is currently a seller's market.
In our latest piece, we share unique perspectives on how artificial intelligence is amplifying human potential and reshaping business. This article explore 3 fundamental questions:
ļ¶ How will AI shift the expectations of my customers?
ļ¶ How will AI transform the way my competitors run their businesses?
ļ¶ How should my company respond to AI?
While innovative new technologies have been very efficient in combating traditional fraud, our research has found that digital technologies are also giving rise to new types of digital tax fraud: the increase in the number of e-filings of tax returns across geographies is driving new types of fraud using identity theft as the basis.
Another type of fraud taking shape is Zapping ā using software programs to automatically skim cash from electronic cash registers (ECR) or point of sale systems.
Similarly, the growing usage of third-party payroll processors is opening up a whole new avenue of fraud where unscrupulous processors siphon off taxes due to the state.
Our analysis of these new digital tax frauds shows that inaction is not an option for tax authorities. We have modelled the evolution of tax fraud, taking into account new incidents of fraud enabled by digital technologies. Our findings are sobering for tax authorities. In a scenario where tax authorities continue to fight new tax fraud with conventional tools, we estimate digital tax fraud in the US will rise from $32 billion to $49 billion by 2020.
To combat this staggering scale of fraud, conventional methods are too slow for the digital age. Tax authorities must move away from an incremental, piecemeal approach to a much more comprehensive transformative line of attack with a long-term vision, roadmap and multifaceted solutions involving people, processes and technology.
What is the impact of inaction of tax authorities to rein in new types of digital tax fraud? How can analytics be used as an effective weapon to fight against digital tax fraud.
In this edition of our Work Ahead study, we explore the increasing primacy of digital within the context of the COVID-19 pandemic and assess whatās next for the future of work.
Nine Business & Technology Trends impacting 2018 and beyond.Dileep Srinivasan
Ā
This presentation discusses the global business and technology trends that will shape the coming decade. With AI, Robotics and Blockchain penetrating every industry, there will be far reaching implications to countries worldwide.
We could also see new leaders worldwide in the next decade, shifting the balance of power from developed countries to others.
The Current Relevance of Materiality: Voluntary Reporting, Fraud, Blockchain ...inventionjournals
Ā
A literature review is performed on the current context of materiality. The concept of materiality is used mainly as a financial measure. In current company environment financial measures are only a part of the application of materiality levels. The current relevance of materiality is discussed based on the developments of voluntary reporting, fraud, blockchain and co-operative compliance. It is concluded whether materiality is outdated in the current company context.
Industry and firm profile- MBA course papergirish0984
Ā
The objective of this document is to study a particular industry and a firm within that industry. This document describes the Financial Services Industry and JP Morgan bank.
The results of our latest study on āSmart data transformation,ā carried out with Fraunhofer FIT, are here. In this special research report, we wanted to understand the business benefits, challenges and success factors around this topic, as well as identify key needs to facilitate the effective implementation of smart data transformation.
Investments in Compliance and Legal Automation and the AI FactorVladimir Vereskoun
Ā
Presented by Vladimir Vereskoun at the Techlawfest conference in Singapore on 3 April 2018. The slides describe how to market a legaltech or a regtech startup to avoid looking "niche" and the AI factor.
Extensible business reporting language xbrl a new dimension in financial r...Sara Porras
Ā
Enofe, A., & Amaria, P. (2011). EXTENSIBLE BUSINESS REPORTING LANGUAGE XBRL: A NEW DIMENSION IN FINANCIAL REPORTING. International Journal Of Business, Accounting, & Finance, 5(1), 78-90.
Tomado de: Base de datos Universidad Javeriana Business Source Complete (EbscoHost)
New Opportunities for Technology-Driven Business TransformationJoseph M Bradley
Ā
The core disruptive technologies of mobile Internet, business analytics, social networking,
and cloud computing will transform the preferred IT delivery and deployment models for
global enterprises.
In our latest white paper, our expert authors share insights on why an integrated, real-time approach is key to business planning in the digital age. This special report is the great work of our supply chain experts, who are leading some of our firmās most innovative thinking and solutions with top global clients.
Learn About:
ļ¶ The evolution of planning capabilities in the enterprise
ļ¶ Why an integrated business planning (IBP) framework should include end-to-end business processes across the organization
ļ¶ A view into the different maturity levels an organization can achieve and strategies for developing a digital-driven IBP framework
ļ¶ How companies can get started and accelerate their journey to advanced business planning
HOW XBRL WILL DRAMATICALLY IMPROVE: REPORTING AND CONTROL PROCESSESWorkiva
Ā
Investors who risk their hard-earned cash in equities need access to timely, relevant, and accurate financial and business information. Most of this information originates with the companies whose stocks they own. For the capital markets to operate most efficiently, information about public companies must be understandable, accessible, accurate and, most importantly, trusted by market participants. In the current state of information access, there are multiple problems in making this level of clarity, accuracy and public trust a reality.
DeFazio Communications IABC Heritage Presentation--PR on Steroids: How Contri...Tony DeFazio
Ā
The #IABC19 Conference just wrapped up in Detroit, and I had a great time leading a breakout session on the potential for Contributorships as a developing trend in the PR industry.
Contributorships are an important part of our client communications strategies at DeFazio Communications. Rather than pitching stories to the media and fighting for coverage, we establish our clients as regular contributors at major media outlets that their prospects read. This allows them to control the editorial agenda, the content, and the timing.
XBRL stands for eXtensible Business Reporting Language. It is one of a family of "XML" languages which is becoming a standard means of communicating information between businesses and on the internet.
When the XBRL data reporting standard
became mandatory in 2009, optimism
reigned that structured data would allow
for vast analytical possibilities. Businesses,
regulators, and investors would be able
to compare data across public companies
at the push of a button.
Accounting Information Systems - XBRL Research PaperKesha Haley
Ā
*Please do not use any material in this document without proper citation. The use of any material in this document without such citation constitutes plagiarism. Thank you.*
This paper was completed in partial satisfaction of course requirements for ACCT 8230 - Accounting Information Systems - at Kennesaw State University during the Spring 2009 semester. The paper explores the new form of submitting financial statements, XBRL (eXtensible Business Reporting Language), a subset of XML (eXtensible Markup Language).
My presentation to "Transparency Camp 09", about how to go beyond transparency to an integrated strategy based on "democratizing data" (structuring and syndicating it and providing social media analysis tools to share it). This integrated strategy will provide transparency, give workers the real-time information they need, reform government regulation, cut corporate paperwork, and crowdsource innovation. It may, or may not, cure the common cold under certain conditions.
Second wave benefit of xbrl liv watson brian mc_guireWorkiva
Ā
Although XBRL is broadly hailed as revolutionary, its
adoption has been more evolutionary in its incremental
standards development and almost stationary in its
implementation
CAN SOMEONE PLEASE EXPLAIN CARBON ACCOUNTING AND DEFINE WHAT A CARBON LEDGER ...Workiva
Ā
Many jurisdictions have experienced considerable progress relating to the disclosure of climate-related information, however internationally aligned (or consistent) disclosure standards and requirements have not been mandated on a global basis. The result is an environment within which we have limited discoverability, consistency, comparability, and quality across the climate data available.
COP 27 host Bellona and CIFF - Digital Sustainability Disclosures Workiva
Ā
Moving from voluntary disclosures to mandatory disclosures, governed by securities regulators. That means the company has to give it vastly more attention, and these disclosures will be subject to increasingly rigorous systems, controls and procedures. Goes from being a communication function, to a compliance function as a regulated disclosure.
United states if air force academy april 2020 liv apneseth watsonWorkiva
Ā
"Sustainability reporting is not just report generation from collected data; instead it is a method to internalize and improve an organizationās commitment to sustainable development in a way that can be demonstrated to both internal and external stakeholders." Wikipedia
Auditing and Assurance Update on Non-Financial InformationWorkiva
Ā
44th World Continuous Auditing and Reporting Symposium Accounting and Auditing in an Artificial Intelligence Environment Foro FundaciĆ³n Cajasol Ā· Sevilla, Spain
March 21 & 22, 2019
The goal of TODEā2017 is to look into the future of RegTech and discuss key developments within the 10+year horizon. Participants will learn and discuss the requirements, challenges and solutions necessary to achieve transparent, efficient and global, trusted, open data ecosystems, responding to todayās market, regulatory, legal and technological developments. The conference sessions and panels will cross the industries of banking, insurance, pensions funds, investment firms, securities and other to enable connected view and analysis across legal, data and technological perspectives.
The Management Accountant in a Digital World The interface of strategy, tech...Workiva
Ā
In an era of digitalization of data processes, the management accounting profession has the potential to count even more. They interpret big data and exercise judgement. This presentation will explore new and emerging information technology trends that can help the management accounting profession take a leadership role within their organization by exploring the interface of strategy, emerging information technologies, and of cost information. We will further explore how the management accountant can apply emerging information technology to maximise the value of information while minimising the costs and risks of holding it.
Blockchain and XBRL at the 2017 American Accounting Association presented b...Workiva
Ā
The integration of "Blockchain and XBRL" provides a seamless data solution, with blockchain as a potential output from XBRL based reporting.
Blockchainās smart contracts might also be facilitated by an XBRLās powerful persistent data model.
The Impact of Technology on Audit at PIOB Madrid - presented by Liv Apneseth...Workiva
Ā
Regulatory and technological developments are changing the nature of financial markets, services and institutions in ways completely unexpected prior to the 2008 Global Financial Crisis
Natural capital accounting presentation at the xbrl euro filing 2017 presente...Workiva
Ā
The green gross domestic product (green GDP or GGDP) is an index of economic growth with the environmental consequences of that growth factored into a country's conventional GDP. Green GDP monetizes the loss of biodiversity, and accounts for costs caused by climate change.
Forging a federal government open data agenda by liv watsonWorkiva
Ā
The federal government possesses an enormous amount of valuable public data, which should be used
to improve government services and promote private sector innovation. This legislation seeks to
achieve these goals by creating an expectation that ā by default ā government data will be open and
available whenever possible. Specifically, this bill defines open data without locking in yesterdayās
technology; creates standards for making federal government data available to the public; requires the
federal government to use open data to improve decision making; and ensures accountability by
requiring oversight during key periods of implementation.
What every managemenet accountants should know about the cloud by l iv watsonWorkiva
Ā
Understand the limitations of conventional technologies.
Change the way you work with a cloud based productively platforms + Blockchain + XBRL + LEI's.
What every managemenet accountants should know about the cloud by l iv watson
Ā
Enhancing Capital Markets Transparency And Trust Davos 2010 L Watson (2) (2)
1.
2. āMore transparency is one key to restoring trust, and executives have a
fiduciary responsibility to their stake holders to learn more about XBRL
and how this powerful open source royalty free information standard can
help bring transparency and trust back to markets.ā
Liv Watson, a founding member of XBRL International Consortium
āThere are many who rightly see the crisis as the consequence of failure
to put economic policies at the service of the common good. As Adam
Smith wrote over 250 years ago in his Theory of Moral Sentiments, univer-
sal values far beyond the profit motive ā including humanity, justice, gen-
erosity and public spiritedness ā must provide the framework for markets
to work effectively. Now, he might argue, is the perfect moment to ensure
that such core values are finally hardwired into public policy and interna-
tional relations. In a highly interconnected world beset with shared prob-
lems, we cannot afford to get this wrong. And if we get it right, then we
might finally have learned the lessons that Smith was trying to teach us.ā
Kofi Annan, Former, UN Secretary-General
An abstract
3. Enhancing Capital Markets Transparency and Trust
By Liv Apneseth Watson, IRIS Business Services
XBRL a universal language of business information transforming the approach to dis-
closure
The idea that regulatory-required disclosure can reduce risks and foster transparence is not
something new to public policy. As early as the 1930s, reacting to the market meltdown of the
great depression, President Franklin D. Roosevelt championed the approval of the United States
Securities and Exchange (SEC) Acts, which required companies that sold securities to the public
to reveal earnings, obligations, and other data to foster transparence to investors. Over time,
those disclosure requirements formed the basis for public confidence in the nation's securities
markets.
Back then before copy machines, fax machines, and computers had been invented. People trav-
eled to Washington, D.C., to public reference rooms to gather information they wanted to use for
analysis or other purpose and then called key stakeholders about the event from SEC provided
payphones. In those days, you had to have pocket full of quarters if you went digging into SEC
filings. Now, in the wake of yet another market meltdown, government, regulators, industry
groups and investors are once again taking a closer look at how disclosure works in practice.
The Internet and electronic communication has ensured that information is more freely
available than ever before and that the time it takes to deliver that information has sharply de-
creased. The key question is now: How reusable is that information? Even when you know ex-
actly what you are looking for and roughly where to find it, extracting information from financial
and business reports today generally involves a largely human error prone manual effort that is
often very frustrating and time-consuming. The biggest problem is that the format and media on
which financial and business reported disclosures are authored and shared varies widely be-
tween paper, html, pdf, and other human readable forms or proprietary electronic formats tied to
a specific software application. Each publishing format has its limitations. To resolve the prob-
lem of providing reusable access to timely, relevant, discoverable and accurate financial and
business information a market-driven open-standard consortium has evolved and developed an
information standard called XBRL short for eXtensible Business Reporting Language. This inter-
national consortium powerfully connects members representing the entire business reporting
supply chain (see Figure 1 below) in the development of a standards-based solution for financial
and business information that is universally open industry-driven, and internationally endorsed.
4. Figure 1: The Financial and Business Reporting Supply Chain
Source: XBRL International, Inc
XBRL International is comprised of local jurisdictions which focus on the progress devel-
opment and coordination of XBRL in their region and direct members in regions that juris-
dictions have yet to be formed. Members of XBRL International include approximately 600
leading companies, associations, government and other industry agencies involved in pro-
viding or using business information.
XBRL Components
There are two main components to XBRL: the XBRL Specification and the XBRL Taxono-
mies, including the underlying linkbases.
1 XBRL Specification
The XBRL technical Specification provides the fundamental definition of how
XBRL actually works. The Specification allows software vendors, programmers and
end users who adopt it as a specification to enhance the creation, exchange, and
comparison of financial reporting information. The documentation of the Specifica-
tion is published by XBRL International and is available at http://www.xbrl.org/
Specifications/.
2 XBRL Taxonomies
The key to understanding the benefits of XBRL lays in the notion of ātaxonomiesā
and it is probably time for all executives to add "XBRL Taxonomies" to their profes-
sional vocabulary.
5. XBRL taxonomies are basically dictionaries of business terms and links to their corre-
sponding linkbases. Not only does the information become instantly searchable and re-
trievable, but it can also be immediately loaded into spreadsheets and any number of soft-
ware applications for analysis.
ā[T]he data is trapped in an iceberg of paper in these current systems, and if we could just
tag that data it would be instantly available. That iceberg would melt, that data would be
freely available, and it would be accurate, it would be complete, it would be timely, it
would be relevant, and it would be comparable.ā
Alfred Berkeley, former President Nasdaq, CEO Pipeline Trading, New York
Figure 2, shows a sample of an original data item with tagged and linked explanatory
labels that enhance the user's understanding of a data element.
Label Linkbase: This is a list of common business reporting term that is used in general
purpose financial and business reporting statements.
ā¢ Presentation Linkbase: This allows the user to click on a link and see the informa-
tion in different views and different languages.
ā¢ Reference Linkbase: This allows for data items to be linked directly to items in au-
thoritative literature such as US GAAP standards or other authoritative literature.
ā¢ Formula Linkbase: This allows one to set triggers that could give early warning
signals for accounts that are in trouble with one click of the mouse. A common way
to communicate and exchange these formulas among stakeholder
ā¢ Context Linkbase: This gives the XBRL tagged item more information about the
data item, such as it is a budget number in US dollars for fiscal year 2008.
ā¢ Calculation Linkbase: This explains from what calculation the number derives, for
example ensuring that Cash equals Currency plus deposits.
6. ā¢ Other Linkbases: This allows the authorās of financial and business reporting data
to add or link additional attributes to a data item. Companies can provide additional
data definitions, authoritative literature references and more thereby dramatically
increasing the probability that the user of the financial data will be able to under-
stand managementās intent and enhance comparability.
Ā
Building Trust with Enhanced Interactive Disclosure
One thing investors and regulatory agencies should be able to count on is that audited
financial statements reported to public repositories at least add up, but a recent study
undertaken by IRIS Business Services shows that this is not necessary the case. In this
study by using XBRL it was discovered that 209 listed Indian companies had discrepancies
in their reports and that the numbers did not add up.
This was discovered by converting over 1,400 listed Indian companiesā primary financial
statement into XBRL using the benefits of the calculation linkbase as part of the XBRL
International specification that explains from what calculation the number derives. It does
not really matter that most of discrepancies were not material. The very fact that there are
discrepancies is a serious enough matter.
The errors were discovered in the course of creating Indiaās first-ever corporate
fundamentals database in XBRL. The project used the taxonomy approved recently by the
Institute of Chartered Accountants as a first step toward full-fledged adoption of XBRL in
India. It might be unfair to simply blame the auditors, as it is the responsibility of company
managements to get it right, but the fact that this information has gone undiscovered for
years should raise the questions, how accurate is the information reported by companies to
the marketplace.
This āTrust Meltdown Reportā comes at the time when the Indian capital marketplace is
already being questioned about its regulatory oversight. Just recently a leading Indian
outsourcing company Satyam Computer Services publicly announced that it had
significantly inflated its earnings and assets for years, consequently throwing the whole
local capital market into turmoil. Many observers are now asking whether similar prob-
lems might lie buried elsewhere.
The challenges associated with accurate, timely financial reporting are apparent from the
number of other accounting scandals uncovered during the past few years. These scandals
have been widely reported and the estimated cost has grown into the billions of dollars
(Economist, 2003). Restatements of financial results by public companies soared in 2005
as auditors were forced to drill deeper into corporate accounts, in part because of a
sharper focus on requirements laid out by the US Sarbanes ā Oxley Act (Reilly, 2006).
This brings the attention to that a non-technological solution can go only so far. This is
why the underlying design of the XBRL technology specification might be the magic wand
to bring accurate and timely results because it integrates technologies with the basic
accounting framework. Using underlying linkbases, XBRL allows every item defined in a
7. financial statement to carry multiple attributes, including the interrelationship with other
elements. This simple, yet powerful concept of linkbases allows every accounting element
to be validated before being submitted to a regulator. Clearly the way financial and
business reporting data is prepared, communicated and analyzed today is fundamentally
changing.
XBRL is not about the technology. It is about communicating your financial and business
reporting information, accurately, effectively and in real time, to the electronic market-
place. Give the capital markets better financial information that is easier to consume, is
more reliable, and is delivered faster, and the capital market will respond favorably with
more exposure and lower costs of capital.
REFERENCES
Economist . ( 2003 ) Still counting the cost .October 2003 .
Reilly , D . ( 2006 ) Sarbanes ā Oxley changes take root . Wall Street Journal , 3 March 2006 .
Social Analytics - The Benefits of Standardization of related context, presentation,
formulas, and relationships
Standardizing business information, its context and presentation concepts are foundational
to automating the exchange of relevant disclosures between companies and their
stakeholder constituents. As outlined above, XBRL also enables the standardization of
related formulas which can be combined into complex calculations and even analytical
models. The standardization of the critical information concepts (context, presentation,
formulas, and relationships) enables third party users to more effectively access, analyze,
manipulate, share and collaborate.
Current analysis processes are adversely impacted by physical location of the information
within spreadsheets. A formula that represents a simple analytical concept, say āReturn on
Assetsā, would be articulated based upon the physical location of the relevant data (e.g.
(B2/F2) where B2 is the cell location of Net Income and F2 is the cell location for Total
Assets).This physical orientation of information hinders development, sharing, reuse and
management of formulas (macros) across spreadsheets, applications and analysts. The
current physical orientation of information within spreadsheets also limits the analystās
ability to cost effectively share and/or collaborate with other analysts.
XBRL enables analysts to build formulas (macros), based upon the standardized
vocabularies. The XBRL enabled āReturn on Assetsā formula will look more like a logical
sentence (eg ānetincome/totalassetsā). In an XBRL enabled spreadsheet, the software
provides a view of the company information and executes the analytical formula based
upon the logically defined information of ānetincomeā and ātotalassetsā. As a result, ana-
lysts have an enhanced analytical processing environment in which they can construct for-
mulas based upon public taxonomies from both the public-sector companies and even
those unique taxonomy extensions developed by the individual analyst.
As with the barcode, standardized information structures enable greater levels of
automation within business processes. Some analysts are already using XBRL to reduce
8. costs and improve effectiveness of their internal analytical processes, either through
intermediary offerings or internally developed applications and products. Other analysts
are applying semantically based artificial intelligence agents to make subjective
assessments on narrative disclosures that are structured in the XBRL format.
Just as html enabled the social networking collaboration via sites like Facebook,
Wikipedia, and MySpace; XBRL is enabling social analytics via EDGAR-Online's
I-Metrics platform, Morgan Stanley's Modelware, IRIS Business Service iFile compliance
platform, and PricewaterhouseCoopers Interactive Data Platform. These XBRL enabled
analytical platforms provide analysts with a library of highly reusable analytical models
and formulas and a collaborative method of sharing new ideas and insights with other
analysts within their organizations and/or groups.
The enhancement of capital market transparency is not only relevant for company
disclosures; it is also relevant for the formulas and models used to analyze the company
disclosures. Social analytics is a new level of market transparency that promotes better
communication between companies and their investors and collaboration between
investors. These new capabilities work to enhance the analytical capabilities of both
companies and their stakeholders and thereby foster trust in company disclosures.
The bottom line is, if a company is not on radar screen of the investors, chances are that
the prices would fall and cost of capital rise. If a stock exchangeās data system is not easy
accessible to investors, they may drop off the radar screens of the investors. Todayās focus
on improving business reporting and bolstering confidence in financial capital markets
demands technology that enables rapid and accurate reporting and analysis of corporate
financial information. Any capital markets that want to fulfill its mission of protect inves-
tors, maintain fair, orderly, and efficient markets, and facilitate capital formation should
adopt XBRL as part of their filing requirements to boost investorās confidence.
The list of benefits could go on. For now, suffice it to say that executives have an economic
fiduciary responsibility to learn more about XBRL and how this powerful information
standard can be used to improve efficiency of data sharing of financial and business
reporting information.
Side Bar Brief description of Sample XBRL projects worldwide
(in alphabetical order)
Belgium
Since January 2008, XBRL has been mandatory for all filings of annual accounts to the
National Bank of Belgium and the project has been extended to the annual accounts of the
not-for profit sector. The CBSO (Central Balance Sheet Office - CBSO) receives currently
more than 90% of all the annual accounts filed in XBRL format.
Canada
The Canadian Securities Administrators Voluntary XBRL filing program is now in effect,
XBRL Canada is working on a taxonomy that conforms to IFRS.
9. Chile
Starting 2009 those companies which are the most actively traded on the Securities
Market will be required to file their annual financial statement according to the
international standards. The SVS XBRL Team has extended the IFRS taxonomy according
its requirements and the companies would be filing their returns based on this taxonomy.
The SVS XBRL project is one of the first XBRL projects in South America
China
The China Securities Regulatory Commission has been looking forward towards adoption
of XBRL for information disclosure of listed companies since 2002 and has been joined by
the Shanghai Stock Exchange for the implementation of XBRL as a reporting standard. As
of April 30, 2009, all the 864 companies listed on the Shanghai Stock Exchange (SSE) have
submitted their XBRL instances simultaneously during the disclosure of the periodical
reports of 2008 for the first time, and included the aforesaid XBRL instances as part of the
mandatory disclosure.
Denmark
The Danish Commerce and Companies Agency (DCCD) has been receiving annual ac-
counts from companies in XBRL since 2005. A complete XBRL solution for the Danish
class B annual reports has been running since the beginning of 2008. The XBRL Taxonomy
in Denmark has been developed by the DCCA in co-operation with both industry and
experts.
Germany
Around 425,000 corporations are filing their annual statements with the German
Bundesanzeiger in XBRL format since 2007 using the latest German GAAP taxonomy i.e.
HGB Taxonomy. The third version of C&I taxonomy is updated and GAAP Taxonomy for
financial institutions was finalized and included into the package.
India
The Securities Exchange Board of India (SEBI) has mandated the top 100 companies listed
on the two major exchanges viz. the Bombay Stock Exchange and the National Stock
Exchange, to file their disclosures through XBRL-based Corpfiling. In addition to the
mandated 100 companies, over 500 companies are filing voluntarily their financial in
XBRL.
The Reserve Bank of India, Indiaās central bank, has launched XBRL based reporting
solution for capital adequacy returns. All the scheduled commercial banks which fall un-
der the purview of Basel II use this platform. Returns for fortnightly liquidity position and
the annual financial statements are in pipeline
The Institute of Chartered Accounts of India has developed taxonomy for India based on
Indian GAAP. The taxonomy for Commercial and Industrial sector is completed and ready
for acknowledgement from XII. The taxonomies for Banking and Non-Banking companies
are under development
10. Ireland
The Central Statistics Office (CSO) Ireland has started a pilot to assess use of XBRL in
one of its quarterly industry surveys. The pilot involved the creation of XBRL documents of
one of the CSO forms - the Quarterly Accounts Inquiry to Industry. The survey covers
enterprises with 20 or more persons engaged in the Mining, Manufacturing and Energy
sectors and reports on changes in stocks, acquisitions and sales of capital assets during a
quarter. Seven respondent companies participated in the pilot and successfully submitted
data electronically using the XBRL solution.
Japan
Japan also is one the early adopters of XBRL and had started voluntary XBRL reporting
program for financial services institutions gradually expending the range of reports since
2005. The Financial Services Agency (FSA) has implemented a new system which requires
around 5,000 listed companies and 3,000 mutual funds to submit their financial
information in the XBRL format.
Korea
As of 2007, all publicly held companies file financial statements using XBRL on the
electronic filing system of the Korea Financial supervisory Commission. The system allows
viewers to see and analyze a companyās financial statements in English.
Macedonia
Mr. Fatmir Besimi, head of the Ministry of Economy in Macedonia has initiated a study
headed up by a local firm RE-AKTIV DOO for a nationwide implementation of the XBRL
standard and is expected to go live in 2010 with a goal to reduce compliance cost of com-
panies as well as attract foreign investment.
Netherlands
Since 2005, one of the largest XBRL projects was started by Netherland government with
the aim of decreasing the regulatory reporting burden on the entities by 25%. The
taxonomy project covers three major reporting areas ā taxation, annual accounts and
economic statistics. Since Jan 2007, all the Dutch corporations were able to submit their
data in XBRL format.
Singapore
The Accounting and Corporate Regulatory Authority of Singapore is mandating the filing
of statutory reports in XBRL. Since November 2007, Singapore-incorporated companies
are required to file their Annual Returns including financial information XBRL format.
Baring certain types of exempted companies, all listed and non-listed companies will be
filing in XBRL
South Africa
The Johannesburg Stock Exchange developed as a pilot, an XBRL based filing platform.
JSE commissioned Deloitte SA & IRIS Business Services (IRIS) for building the platform.
Seven companies, and the JSE, along with XBRL SA came together to sponsor this project.
This pilot is also the earliest adaptation of IFRS 2008 taxonomy.
11. Spain
The Spanish Stock Exchange has begun to use XBRL for receiving and distributing public
financial reports from more than 3,000 listed companies. The Bank of Spain, central bank,
is receiving regulatory data in XBRL from more than 400 banks covering more than 90 %
of the Spanish financial sector. The Bank of Spain has also developed a Financial Informa-
tion Exchange System to support XBRL reporting by credit institutions.
United Kingdom
Companies House has already received more than 200,000 accounts from small compa-
nies in XBRL using an extension to the UK GAAP taxonomy. United Kingdom HRMC
Draft Regulations to require online XBRL Corporation Tax filings have now been issued
and are open for comment until 31 July 2009. Companies will be required to file online the
Corporation Tax returns and payments from 2011 in XBRL format. The rules apply to
period ending on April 1, 2010 and later.
United States
The Securities Exchange Commission has played a vital role in accelerating adoption of
XBRL in the US. Voluntary filing program for XBRLised returns has been initiated by the
exchange in early years and is moving towards mandatory filing in a phased manner. In
December 2008, SEC has made it mandatory for companies above USD $ 5 Billion as
global float, to file their returns from June 2009 quarter onwards in XBRL format and
around 500 companies are expected to file XBRLised returns and over the next couple of
years all companies will be phased in for a 100 percent compliance. The SEC is also man-
dating that all mutual funds start reporting in XBRL in 2010.
The Federal Financial Institutions Examination Council in US has achieved major success
with the use XBRL for regulatory bank reporting. The FFIEC implemented XBRL-based
solution in 2005 for the filing of call reports which was used by more than 8000 financial
institutions. The results were phenomenal and showed an increase from 66% to 95% in
data cleanliness, from 70% to 100% in accuracy, from weeks to hours in timeliness, and a
15% rise in the productivity of analysts.
State Nevada State entered into a pilot with IRIS Business Services to use XBRL for debt
collection. The agencies would be using spreadsheets to send their data to the state and
XBRL would be running beneath. IRIS together with Nevada State Controller Kim Wallin
have published a white paper on State Business Portal which talks about the need to
streamline the transactions and inter-agency interactions and the role of XBRL in building
such integrated information exchange platforms.