xbrl and the macpa - summit presentation
Post on 07-Dec-2014
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XBRLWhat is it?What�’s happening with it?
The panelists:
�• Skip Falatko �– MACPA�• Thomas Hood �– MACPA student intern
(Salisbury University)�• Eric E. Cohen �– PricewaterhouseCoopers &
founding member of XBRL
XBRL�•eXtensible�•Business�•Reporting�•Language
XBRL
�• Open standard tagging language
�• In use internationally
�• SEC requirement in US
�• �“Bar coding�” of financial information
XBRL tags provide meaning and context such as……
�• McCormick & Company�• Sales Revenue $3,122�• US Dollars�• US GAAP�• Audited�• Year ending November 30, 2010
Taxonomies are data dictionaries
�• Used to organize tagged data�• They include the financial statement
elements�• Are unique to specific industries�• Can be extended to fit your
organization
Initial XBRL work with 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
Why does XBRL matter?
�• 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
MACPA’s XBRL project�• Learn about XBRL
�• Impacts our members
�• Leverage the technology internally to improve our speed, processes and capability
Overview�• Map Accounting Data to XBRL Global Ledger�• Subsidiary closing entry�• Extend the GAAP Taxonomy�• Use the XBRL GL Accounting Data
GL to GAAPKPI Analysis �– Excel XML importFinancial Scoreboard �– batch files/GUI
Mapping
�• Use SQL to retrieve accounting dataWhat information do we need?
�• Use functions to facilitate movement of data�• Map �– Account info, journal entries, audit rollup
groups, KPI�’s
Accounting Data
XBRL GL Data
Excel XML Import
Excel Pivot Table
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
Reversal of Closing Entry�•
Reversing Entry in Excel
Extending GAAP
�• Use GAAP Commercial & Industrial as entry point
�• Add FASB References�• Create a dimension
DuesCourses
GAAP Extension
Use the Data�• XBRL Global Ledger �– SRCD Module
Facilitates the link between GL and FRKey Component of GL
�• KPI AnalysisExcel Pivot tables
�• Financial ScoreBoardSecond MappingBatch Files/Graphical User Interface
Outlook�• Improve mappings - Global Ledger can represent much
more than just general ledger �– use it to its max potential!
Transaction levelMultiple databases
�• Database integrationDynamicsPayrollAM4SalesForce
�• Audit Schedules/worksheets�• Financial Dashboard �– Own your Data�• Automated 990 form generation
What did Global Ledger 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
SEC Mandates�• Final
Financial ReportsMutual FundsCredit Rating Agencies
�• ProposedExtractive IndustriesSWAPs
Registration and Regulation of Security-Based Swap Execution Facilities
SEC (Continued)�•2011 Taxonomy
FASB responsibilityIncorporation into exposure drafts
�•Year 3500 -> 1700 -> 10,000IFRS
ConcernsReaction: HOT OFF THE PRESSES!!
End of limited liability for Group 1
SEC (Continued)
SEC (Continued)
Other Mandates
�• Ongoing mandates 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
SBR�•SBR movement:
Primary goal: Reduced compliance burden
But also:Greater efficiencies, communications, transparency
NL, AU, TW, SP, UK, et alMoving from option to mandate
Europe
�•Banking sectorFormer CEBS now EBABasel II
�•Insurance sectorEuropean Insurance and Occupational Pensions Authority (EIOPA)
Assurance�• SOP 09-1: Agreed upon procedures�• Next step: Principles and Criteria
http://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/XBRL/DownloadableDocuments/FINAL-ED-XBRL-Principles-and-Criteria.pdfHot off the presses!
Tooling
�• From outsourced to in-houseClarity FSRWebFilings
�• To open sourcewww.arelle.org
�• To embeddedMACPA story
XBRL Global Ledger
�• The touch point to transactional standards�• The Seamless Audit Trail�• Outreach
OMG, EDMCOCEGHIMSS and Medical Banking ProjectUS Government space
�• Research: Momentum Accounting (K. Wright)
Technical
�•Formal modelling�•Many updates and refinements�•Data types and Units of measure
Events�•XBRL US, Nashville in Septemberhttps://events.capsllc.net/xbrl2011/welcome
�•XBRL International XIIBrussels (just concluded)Montreal in OctoberAbu Dhabi in the Spring.
Questions?For more information:skip@macpa.orgjh55424@gulls.salisbury.edueric.e.cohen@us.pwc.com
http://www.altova.com/documents/MACPA_Low.pdfAltova - MACPA XBRL Case Study
XBRL Resources:http://www.xbrl.comhttp://www.cpasuccess.com/xbrlhttp://www.xbrlplanet.org/http://xbrlnetwork.ning.com/http://www.altova.com
Skip Falatko, CPADirector of Finance
Maryland Association of CPAsBusiness Learning Institute
(443) 632 2301E mail skip@macpa.org
Twitter: www.twitter.com/skipfalatkoLinked In: http://www.linkedin.com/pub/skip falatko/4/14b/332
Web http://www.macpa.org
Blog http://www.cpasuccess.comhttp://www,bizlearningblog.com
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