Download - XBRL Progress Report
XBRL: Introduction & Overview
Grant Boyd, CA
Technical Manager – XBRL, AICPA
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Why XBRL XML / XBRL Overview Global Adoption Public Sector
Session Topics
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The Business Reporting Supply Chain
ExternalFinancialReporting
BusinessOperations
InternalFinancialReporting
Investment,Lending, andRegulation
Processes
Participants
AuditorsTradingPartners
Investors
FinancialPublishersand Data
Aggregators
Regulators
Software VendorsSoftware Vendors
ManagementAccountants
Companies
XBRL XBRLXBRL
XBRLFinancial StatementsXBRL-GL
TheJournal
Standard
Transaction Standards
Collaboration is KEY!!!
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Then …
XBRL began with the idea of a single individual - Charlie
Hoffman, from a small CPA firm in Tacoma, Washington …
… and 13 Sponsoring Companies
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XBRL Membership Growth
2000 2001
2002 2003 2004 2005 2006Time
Members
100
200
300
400
1380
130
210
275
300
400
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XBRL Jurisdictions
UKCA
SPUS
AU
NZ
IR
JPKR
BE
VZ
CO
BR
AR
PT
RU
SG
HK
NOSE
PL
FI
IT
CN
IN
LB
CZ
UA
LUIASB
AE
NL
TR
GR
MTCH
FR
SI
HU
AT
Established Jurisdictions
Provisional Jurisdictions
in Construction & in Project
DE
DK
ZA
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XBRL Regulatory Adoption – Publicly Announced Australian Tax Office Banco de España Bank of Japan Bundesbank Committee of European Banking
Supervisors (CEBS) Chinese Securities Regulation
Commission (CSRC) {sponsoring Shenzen and Shanghai exchanges}
Danish Commerce & Companies Agency
Dutch Tax Authority Dutch Water Authority Eurostat EU Commission – XBRL in Europe Financial Service Agency of Japan The Irish Revenue Spanish Stock Exchange
Commission – 3000 companies
KOSDAQ – Korea National Tax Agency of Japan New Zealand Exchange Patent and Registration Office
(PRV – Sweden) U.S. Securities & Exchange
Commission Shanghai Stock Exchange 800+
companies Shenzhen Exchange Tokyo Stock Exchange UK Financial Services Authority UK Inland Revenue US Federal Financial Institutions
Examination Council (includes FDIC)
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This RFP contemplates a significant, multi-year project to update the system's underlying technology.
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During the next 12 months, the SEC will move beyond the EDGAR concept of electronic filing of paper-based forms, to an interactive data concept in which investors can have instant access to data that's ready to use in myriad software applications on their desktops
The SEC has already begun to move toward the use of interactive data in its disclosure program. Since February 2005, the Commission has been testing the use of data tagging in periodic and investment company reports, using a format known as Extensible Business Reporting Language (XBRL). Filing financial data in XBRL is currently voluntary, and a number of registrants have begun to use the program.
Gartner – XML Hype Cycle, 2005
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Why XBRL …
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Consolidated Profit and Loss Account for the year ended June 30, 2003
Blah blah blah
Blah blah blah blah
Blah blah blah
Blah blah blah blah blah
Profit 925 448
Blah blah blah
Earnings per share 3.6 11.0
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Democratizing Access to Financial InformationPercentage of Companies Receiving Coverage
29%
16%
55%
16%8%
59%
12%
29%
44%
76%
8%
48%
No ResearchCoverage
One Research Analyst More than OneResearch Analyst
NASDAQ (US)NYSE (US)
NASDAQ (Non-US)NYSE (Non-US)
Includes all common stock on NASDAQ National Market and NYSE.Source: Thomson Financial. December 2002.
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With XBRL?Mechanics More Time for Analysis => Better Analysis => Less Risk
Value-added Analysis and Decision-making? 10%
Average Time for Updating Financial Information—11 days
90% time spent on Mechanics
Average Time for Updating Financial Information—1 days
Without XBRL …
With XBRL …
For example … helping banks
Better information leads to better management… better governance… better markets
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XML / XBRL Overview …
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Simple problem:1,200,000 results in a typical search
(e.g. IBM Fixed Assets)
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Searching for the word “Mercury” on the Web can provide a wide variety of results—too many—such as:
Hg
Content—without Context
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Chemical Industry
<SYMBOL>
Auto Industry <CAR-MODEL>
Publishing or Mythology
<GOD>
Music Industry <RECORD-LABEL>
Aerospace Industry <PROGRAM>
Astronomy <PLANET>
“Content in Context” (Industry-specific)
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XML Markup: What Does it Look Like?
Gerald Bostock
8080 Floppy Disk Drive
San Sushi, CA 94078
+1 (650) 555-1424
Birthdate: 19 October 58
<name>Gerald Bostock</name>
<address>
<street>8080 Floppy Disk Drive</street>
<city>San Sushi</city>
<state>California</state>
<country>United States of America</country>
<postcode>94078</postcode>
</address>
<telephone>6505551424</telephone>
<birthdate>1958-10-19</birthdate>
Metadata:Information about
information
Metadata:Information about
information
Ordinary informationOrdinary
information
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XBRL is a pretty simple concept… Tag individual concepts for electronic
dissemination. Most concepts that are disclosed are defined in a
common framework – like IFRS Those that aren’t are the unique aspects of a
particular company’s operations. They are interesting because they are different to what their peers report.
Where a concept belongs to a common framework, use that.
Where a concept only belongs to a single organization, define it, and disclose that definition, together with the fact.
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Savings
Quality
Efficiency
Barcode has done for product distribution …
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… what XBRL is doing for business reporting
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XBRL Basics XBRL is XML It is Extensibile There is an XBRL specification – tells you how to
use XBRL Hinges on taxonomies – the dictionary of terms
for business reporting – which includes financial statements
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Validation
Standardization
XBRL – More Than Just Definitions
CalculationCash = Currency +
Deposits
CalculationCash = Currency +
DepositsFormulas
Cash ≥ 0Formulas
Cash ≥ 0Contexts
US $FY2004
Budgeted
ContextsUS $
FY2004Budgeted
LabelcashCashEquivalentsAndShortTermInvestment
s
LabelcashCashEquivalentsAndShortTermInvestment
s
ReferencesGAAP I.2.(a)Instructions
Ad Hoc disclosures
ReferencesGAAP I.2.(a)Instructions
Ad Hoc disclosures
PresentationCash & Cash Equivalents
PresentationCash & Cash Equivalents
XBRLItem
XBRLItemXMLItemXMLItem
XBRLItem
XBRLItem
PresentationComptant et Comptant
Equivalents
PresentationComptant et Comptant
Equivalents
PresentationGeld & Geld nahe Mittel
PresentationGeld & Geld nahe Mittel
PresentationKas en Geldmiddelen
PresentationKas en Geldmiddelen
Presentation现金与现金等价物
Presentation现金与现金等价物
Presentation現金及び現金等価物
Presentation現金及び現金等価物
PresentationДеньги и их эквиваленты
PresentationДеньги и их эквиваленты
PresentationГроші та їх еквіваленти
PresentationГроші та їх еквіваленти
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Instance Document …
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XBRL TaxonomyCreated by XBRL Consortium
Consumed
Rendered
XB
RL
Cre
ati
on
XBRL DocumentCreated by Preparer
Company Financial Statement
TAGGING
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Two Critical Pieces for Adoption Taxonomies
Language Significant upfront investment Airport runway
Software Tools Needs critical mass Fax machine
2002-2005 Growing monthly
Progress …
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XBRL Taxonomy Growth
2000 2001
2002 2003 2004 2005 2006Time
Public Taxonomies
June, 2001General Ledger
January, 2004UK GAAP 2.0Canada GAAP
June, 2004IFRS GAAPNZ GAAPUK GAAP
February, 2005US GAAP C&IUS GAAP BankUS GAAP InsSEC CertificationMgmt ReportAccountants ReportMD&A
July, 2005China FrameworkIFRS GAAP US GAAP Invest Mgt
Nov, 2005General Ledger
This does not include any private taxonomies such asthose prepared for statutorypurposes.
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XBRL Tools Growth(Representative Listing)
2000 2001
2002 2003 2004 2005 2006Time
Tools
Caseware
Creative Solutions
DynAccSys Xabra
Fujitsu XWand
J2R Batavia Data Driver
Hitachi CBRP
Metapraxis
Microsoft Business Solutions
Rivet Software
UBMatrix Automator ProDecisionSoft True North
Allocation SolutionsEdgar-Online IMetrix
Hitachi XimbaHitachi XiRute
IBS Open Digital ReportingIpedo EII
Oracle XBI Software
UBMatrix Tool KitUBMatrix Converter
Software AG Hyperion
Navision
XBRL SolutionsIBMatrix
FujitsuSAP
Snappy Reports
High Ridge Technologies
FR Solutions
Covarity
SavaNet
FDIC VendorsDBI Financial Systems, Inc.FinArchFRS Global Financial Reporting & AnalyticsIDOM, Inc.Information Technology, Inc.Fidelity Regulatory SolutionsJack Henry & Associates Inc.
Adobe
Core FilingsSemansys IntegratorSemansys Analyzer
Semansys Deployment Manager
Semansys Composer
Carthesis
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XBRL Adoption Accelerates …
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CACA UKUK
IEIE
AUAU
NONO
JPJP
NZNZ
NLNL DEDE
CNCN
Tax Authorities
PilotPilot Committed
Committed
Tax XML Technical Committee recommends use of XBRL (Oasis-OECD)29 Tax authorities
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USUS
UKUK
JPJPESES
SESE
CNCN
ZAZA
AUAU
DEDEDKDK
Financial Banking Regulators
PilotPilot Committed
Committed
KRKR
SGSG
FRFR
NZNZ
NLNL
LuXLuXPortug
al
Portugal
BEBEEU CEBSEU CEBS
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Exchanges & Equity Regulators
Sao PauloSao Paulo
NZSENZSEASXASXJohannesburgJohannesburg
ShenzenShenzen
EuroNextEuroNextKOSDAQKOSDAQ
TokyoTokyo
SingaporeSingapore
SWXSWXLuxLux
Pilot LiveEval
TSXTSX
OBXOBX
LSELSECSECSE
DeutscheBörse
DeutscheBörse
Taipei
SECSEC
Korea
Korea
ShanghaiShanghai
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Different kinds of reporting
“Closed” Aggregate data Complex forms
with hundreds or thousands of concepts
Advanced validation
“Open” Aggregate data Financial
Statements Common base
disclosures Industry,
company and segmented additional disclosure
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More concrete… Closed form reporting for regulators in XBRL is now
absolutely normal. Numerous major implementations. Financial statement reporting in XBRL is still in its infancy,
in terms of number, but is rapidly getting acceptance at all levels, from all stakeholders.
Closed Forms
Financial Statements
XBRL in Fall 2005
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XBRL Regulatory Adoption – 40+ Projects Publicly Announced around the world
KEY PROJECTS Banco de España Dutch Ministry US Federal Financial Institutions
Examination Council (includes FDIC) Shanghai Stock Exchange SEC Voluntary Filing Program
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Dutch Taxonomy Project Major eGovernment initiative The Ministry of Justice and the Ministry of Finance in
a joint effort intend to reduce the administrative burden of businesses by using XBRL to make the composing of reports and exchange of financial data easier.
Focuses on three important reporting chains: Reporting of taxes; for instance profits tax, wage taxes,
value added taxes (VAT) and Income taxes Reporting of annual accounts Reporting of economic statistics
Projected savings for Netherlands businesses?
350 million euro
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Company Regulator
Problem = Exchange ofdata between regulated
entity and regulator
Regulator solution = Use XML Schema to
define terms for exchange.Regulator builds taxonomy using
a (XML Schema) proprietary platform.
XMLSchema
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
Company
Regulator
XMLSchema
CompanyCompany
CompanyCompany
CompanyCompany
Company
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
CompanyCompany
Proprietary solution for RegulatorLooks good to the regulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
Regulator
RegulatorXML
Schemas
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
Regulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
Regulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorRegulator
RegulatorCompany
Proprietary solutions looks different to the companies
and is a costly and complexmodel
Regulator
Solution development – all about me
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Publicly available
Solution development - Collaborationyields benefits to all participants
Company RegulatorXBRL
Internal Reporting Instructions
3rd PartyInterpretative
Guidance
ReportingSources
RegulationsInterpretative
Guidance
Instructions
Stds (FASB,IFRS)
AuditGuidance
Validation
http://www.sec.gov/spotlight/xbrl.htm
Preparer Benefits?
Consumer Benefits?
SEC Benefits?
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Public Sector Project Collaboration Example New Zealand Government taxonomy under
development 8 key agencies collaborating on development
(includes NZX, IRS, Statistics, E-gov, OAG, Audit Office, ACC, Treasury)
Compared standard forms required from business – common Information needs
Simplify reporting for preparers by producing 1 XBRL instance – feeding to multi regulators
The global XML standard for business and financial reporting
Transforming Business Reporting
XBRL is happening!!!
XBRL: It's Unstoppable
Grant Boyd, CA
Technical Manager – XBRL, AICPA