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What is XBRL? MACPA Case Study & Global Update
XBRL (Extensible Business Reporting Language) is an open standard tagging language used internationally for financial reporting, including a requirement from the SEC in the US. The document discusses its benefits, specifically how it facilitates the exchange of information and aids in financial data analysis, and highlights ongoing XBRL projects and taxonomies. The document also covers various implementations, challenges, and the importance of adapting XBRL for different sectors, including non-profits.
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What is XBRL? MACPA Case Study & Global Update
- 1. XBRL What is it? What‟shappening with it?
- 2. The panelists: • SkipFalatko – MACPA • Thomas Hood – MACPA student intern (Salisbury University) • Eric E. Cohen – PricewaterhouseCoopers & founding member of XBRL
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- 4. XBRL • Open standardtagging language • In use internationally • SEC requirement in US • “Bar coding” of financial information
- 5. XBRL tags providemeaning and context such as…… • McCormick & Company • Sales Revenue $3,122 • US Dollars • US GAAP • Audited • Year ending November 30, 2010
- 6. Taxonomies are datadictionaries • Used to organize tagged data • They include the financial statement elements • Are unique to specific industries • Can be extended to fit your organization
- 7. Initial XBRL workwith Microsoft • Fitting into the commercial and industrial taxonomy was a challenge • Non-profits need their own taxonomy • XBRL would be beneficial to the non-profit community
- 8. Why does XBRLmatter? • Facilitates the automatic exchange of information • Can be used to populate financial statements, tax returns, or anything that relies on data • Has the potential to change what we do as CPAs
- 9. MACPA’s XBRL project •Learn about XBRL • Impacts our members • Leverage the technology internally to improve our speed, processes and capability
- 10. Overview • Map Accounting Data to XBRL Global Ledger • Subsidiary closing entry • Extend the GAAP Taxonomy • Use the XBRL GL Accounting Data ▫ GL to GAAP ▫ KPI Analysis – Excel XML import ▫ Financial Scoreboard – batch files/GUI
- 11. Mapping • Use SQLto retrieve accounting data ▫ What information do we need? • Use functions to facilitate movement of data • Map – Account info, journal entries, audit rollup groups, KPI‟s
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- 16. Subsidiary Closing Entry •Differences due to: ▫ BLI Closing Entry • Use Global Ledger to „reverse‟ the closing entry • No data in the accounting system is affected • Reversing Journal Entry is easily pulled containing full detail in GL
- 17. Reversal of ClosingEntry •
- 18. Reversing Entry inExcel
- 19. Extending GAAP • UseGAAP Commercial & Industrial as entry point • Add FASB References • Create a dimension ▫ Dues ▫ Courses
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- 21. Use the Data •XBRL Global Ledger – SRCD Module ▫ Facilitates the link between GL and FR ▫ Key Component of GL • KPI Analysis ▫ Excel Pivot tables • Financial ScoreBoard ▫ Second Mapping ▫ Batch Files/Graphical User Interface
- 22. Outlook • Improve mappings- Global Ledger can represent much more than just general ledger – use it to its max potential! ▫ Transaction level ▫ Multiple databases • Database integration ▫ Dynamics ▫ Payroll ▫ AM4 ▫ SalesForce • Audit Schedules/worksheets • Financial Dashboard – Own your Data • Automated 990 form generation
- 23. What did GlobalLedger Do? • Automated generation of financial statements • Automated KPI analysis of revenue/expense • Automated Financial ScoreBoard package • Drill down from audit rollup to underlying transactions • “Ownership” of data • Think Global Ledger, Think Internal
- 24. SEC Mandates • Final ▫ Financial Reports ▫ Mutual Funds ▫ Credit Rating Agencies • Proposed ▫ Extractive Industries ▫ SWAPs Registration and Regulation of Security- Based Swap Execution Facilities
- 25. SEC (Continued) •2011 Taxonomy ▫ FASB responsibility ▫ Incorporation into exposure drafts •Year 3 ▫ 500 -> 1700 -> 10,000 ▫ IFRS Concerns Reaction: HOT OFF THE PRESSES!! ▫ End of limited liability for Group 1
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- 28. Other Mandates • Ongoingmandates in US (FDIC), Belgium, Chile, China, France, Germany, India, Israel, Italy, Japan, Korea, Spain and others • Inline XBRL at HMRC; also Denmark, Ireland, elsewhere ▫ The ___ of HTML and the ___ of XBRL
- 29. SBR •SBR movement: ▫Primary goal: Reduced compliance burden ▫ But also: Greater efficiencies, communications, transparency ▫ NL, AU, TW, SP, UK, et al ▫ Moving from option to mandate
- 30. Europe •Banking sector ▫Former CEBS now EBA ▫ Basel II •Insurance sector ▫ European Insurance and Occupational Pensions Authority (EIOPA)
- 31. Assurance • SOP 09-1:Agreed upon procedures • Next step: Principles and Criteria ▫ http://www.aicpa.org/InterestArea s/AccountingAndAuditing/Resource s/XBRL/DownloadableDocuments/F INAL-ED-XBRL-Principles-and- Criteria.pdf ▫ Hot off the presses!
- 32. Tooling • From outsourcedto in-house ▫ Clarity FSR ▫ WebFilings • To open source ▫ www.arelle.org • To embedded ▫ MACPA story
- 33. XBRL Global Ledger •The touch point to transactional standards • The Seamless Audit Trail • Outreach ▫ OMG, EDMC ▫ OCEG ▫ HIMSS and Medical Banking Project ▫ US Government space • Research: Momentum Accounting (K. Wright)
- 34. Technical •Formal modelling •Many updatesand refinements •Data types and Units of measure
- 35. Events •XBRL US, Nashvillein September https://events.capsllc.net/xbrl2011/welcome •XBRL International XII ▫ Brussels (just concluded) ▫ Montreal in October ▫ Abu Dhabi in the Spring.
- 36. Questions? For more information: skip@macpa.org jh55424@gulls.salisbury.edu eric.e.cohen@us.pwc.com Altova- MACPA XBRL Case Study http://www.altova.com/documents/MACPA_Low.pdf XBRL Resources: http://www.xbrl.com http://www.cpasuccess.com/xbrl http://www.xbrlplanet.org/ http://xbrlnetwork.ning.com/ http://www.altova.com
- 37. Skip Falatko, CPA Director of Finance Maryland Association of CPAs Business Learning Institute (443) 632-2301 E-mail skip@macpa.org Twitter: www.twitter.com/skipfalatko Linked-In: http://www.linkedin.com/pub/skip-falatko/4/14b/332 Web http://www.macpa.org Blog http://www.cpasuccess.com http://www,bizlearningblog.com
Editor's Notes
- #2 Intros Agenda Show of hands? XBRL?
- #5 Int’l mandated and voluntary – SEC uses it for analysis and comparability – think of it as Bar coding and, expected to have benefits that we can’t even imagine yet
- #6 Information can cross computer systems and still retain its tags, and therefore its meaning & context
- #7 “Framework” for slotting in all elements of financial statements
- #8 Thomas will talk about how we dealt with the Commercial & industrial taxonomy in our current project – improve accountability, transparency and comparability for non-profits
- #9 Many of us spend some of our time moving numbers from one paper/spreadsheet to another.. XBRL can change that … more time analyzing and interpreting
- #10 Using software from Altova - We’re tagging our data – are populating financial reports, KPIs – Altova folks are here – they learned we were using their software and wrote a white-paper which is on the conference website