financial reporting goes global 1 report on global adoption of unified accounting and reporting...

Financial Reporting Goes Global 1

Report on global adoption of unified accounting and reporting standards and

the very latest from the IASCF

Kurt Ramin Chairman (Emeritus), XBRL International, Advisor (IASCF) London, 51.512 / 0.094

November 22, 2007

XBRL at IASC Foundation

http://www.oracle.com/openworld/2007/keynotes.html


Mission & ObjectivesMission & Objectives

The Mission of the IASC Foundation XBRL Team is to provide users an IASCF developed XBRL taxonomy for consistent adoption and implementation of IFRS standards

The objectives are to: Deliver the XBRL Taxonomy with the same quality, in the same languages

and at the same time as the paper version

Encourage the XBRL implementation wherever IFRS is used

Make sure the Intellectual Property (IP) is protected and respected


AgendaAgenda

1. Introduction, Organization, History

2. What’s happening over the last year?

3. Update on global IFRS adoption

4. IASB’s future plans and how the very latest will impact the accounting profession

5. What challenges does the future hold for reporting standards?


704 pages704 pages

Part I: OriginsPart I: Origins

Part II: 1973-1987Part II: 1973-1987

Part III: 1987-2000Part III: 1987-2000


Document (16).pdf

465 pages From 1966 to 1973 1973 to 1995 1995 to 2001 (IOSCO,

SEC) The New Structure

(Trustees, full time Board, localization of standards and use of technology)

References, Index, Acronyms, Pictures


IASB and IASC FoundationIASB and IASC Foundation

IASB is made of 14 members making the Standards and has the technical expertise

IASC Foundation is providing the context to achieve the Board mission

Others: Standards Advisory Council (SAC) IFRIC


Roadmap to ConvergenceRoadmap to Convergence

Norwalk agreement, October 2002 Roadmap: reconciliation by 2009 or earlier Memorandum of understanding, February 2006 Seek progress in areas identified (11 areas) Principles based – new framework SMEs will play a major role Taxonomies: XBRL GL, SMEs, IFRS, US GAAP

(Definition rich) SEC Roundtable, March 6, 2007


2. What’s happening - 20072. What’s happening - 2007

New Standards

New IFRICs

New Publications


20072007

New Standards – NO new standards!, but lots of DP’s, Exposure drafts – and comment letters!

New IFRICs – just a couple

New Publications --eifrs Education – Conferences (Zurich, Singapore) Translations


2513 pages IASCF Constitution Preface to IFRS Framework Due Process Handbook IFRSs 1 to 8 IASs 1 to 41 Interpretations Glossary of terms Index Standard, BC, IG


2007 Spanish2007 Spanishand Localized and Localized

Editions of IFRSEditions of IFRS

40 languages40 languages


Principle: Principle: Principle based standardsPrinciple based standards

PrinciplesPrinciples RulesRules


FASB Codification OverviewFASB Codification Overview

Organizing authoritative US-GAAP by topic


Objective and StatusObjective and Status

Integrate and topically organize all relevant accounting guidance issued by the U.S. standard setters FASB, AICPA, EITF, SEC.

The codification draft is expected to constituents in 2007 for an extended verification period The objective of the verification process is to ensure that the

codification accurately reflects existing U.S. GAAP Once the Board addresses constituent comments, the

codification will become the single authoritative source of U.S. GAAP and will supersede all existing standards


Topical StructureTopical Structure

Topics represent a collection of related guidance in the following hierarchy: Topic > Subtopic > Section > Subsection

Each topic is organized into one of four areas: General principles and objectives Overall financial reporting presentation, Transactional and financial statement accounts, Industry.


Subtopic SectionsSubtopic Sections

Sections are consistent from one subtopic to the next. In the list that follows, topic numbers are represented by XXX,

subtopic numbers by Y; section numbers are the actual numbers:1. XXX.Y.00—Status (References to standards affecting the subtopic)2. XXX.Y.05—Overview and Background3. XXX.Y.10—Objectives4. XXX.Y.15—Scope and Scope Exceptions (if any)5. XXX.Y.20—Topical Definitions / Glossary6. XXX.Y.25—XBRL Definitions7. XXX.Y.30—Recognition (assumes an asset/liability conceptual

framework)8. XXX.Y.35—Initial Measurement (assumes an asset/liability

conceptual framework)9. XXX.Y.40—Subsequent Measurement (assumes an asset/liability

conceptual framework)


Subtopic Sections, cont.Subtopic Sections, cont.

9. XXX.Y.45—De-recognition (assumes an asset/liability conceptual framework)

10. XXX.Y.50—Other presentation matters (B/S classification, cash flow, EPS, taxes, etc.)

11. XXX.Y.55—Disclosure12. XXX.Y.60—Implementation guidance and illustrations13. XXX.Y.65—Relationships (references to other topics or

subtopics that may be of relevance. For example, the Interim Reporting topic may have discussions of LIFO reserves as the object of an illustration or example. In such cases, the relationships section would refer to that material.)

14. XXX.Y.70—Transition and Open Effective Date Information15. XXX.Y.75—Links to Grandfathered Material


ED IFRS for SMEsED IFRS for SMEs

ED 254 pages (IG 80 p. BC 48 p.) Definition (no public market – 50 people) Stand alone document Based on concepts and principles of full IFRS Topics omitted (Price level, interim, EPS,

segment, simpler option) Recognition and Measurement (FI, GW and

impairment, less FV for agriculture) Frequency for updates Respond by November 30, 2007


Possible Simple Format (per period)Possible Simple Format (per period)

Sort statements (Net: assets-liabilities)

1. People

2. Fixed Assets

3. Product (Flow)

4. Financial (Flow)5. Communication

(Information Flow)

Four statements and aligned/ related Disclosure:

1. Statement of Financial Position

2. Cash Flows

3. Recognized Income and Expense for Period

4. Statement of Changes in Equity-NET (including to owners)

Add Related Disclosure:

(People, Fixed Assets, Product, Financial, Communication)


3. Global adoption3. Global adoption

World Standard Setter’s Meeting

Organizational Changes

Latin America and Columbia


World Standard Setters MeetingWorld Standard Setters Meeting

September 24, 25 in London 40 Nations participating (Iran, Israel….

Agenda1. Welcome Sir David Tweedie, IASB Chairman2. Adoption and Implementation of IFRSs (Australia,

China, Japan, Canada, Korea, India, Mexico)3. US GAAP/IFRS Convergence Update4. Implementation and Enforcement of IFRSs5. SMEs6. Other special topics (Framework, presentation of

Financial Statements, Fair Value Measurements)


IFRS adoption in Latin AmericaIFRS adoption in Latin America

Required

Permitted

Future

Costa Rica, Guatemala, Honduras, Nicaragua, Panama, Venezuela

El Salvador, Mexico, Paraguay, Peru

Brazil (2010), Chile (2009) Ecuador (2008)

Uruguay ??? Columbia????


XBRL International Jurisdictions XBRL International Jurisdictions

UKCA

ESUS

AU

NZ

IE

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

Projects Ongoing

DE

DK

ZA

Focus in 2008

IL

Ibero-América

TW


<CurrentAssets contextRef="End_2004" unitRef="EUR">

Tagging of Financial DataTagging of Financial Data

5329000000</CurrentAssets>

UnitContext

<CurrentAssets>5329000000 </CurrentAssets>

RFID - NFC Radio Near Field Frequency Communication Identification


ERP

System

XBRL GL

Commercial

Others

Business Events

Entities Data Aggregators Users

ProprietarySoftware

ProprietarySoftware

ProprietarySoftware

ProprietarySoftware

Regulators

Assurance

Tomorrow’s Financial and Business Reporting Supply Chain

XBRLXBRL XBRLXBRL XBRLXBRL XBRLXBRL XBRLXBRL

External Reports

Management Reports

Electronic input:

Electronic bank statements

Electronic invoices

Credit cards

Scanning

Paper


3. 3. Impact on the Accounting ProfessionImpact on the Accounting Profession(Political and technical)(Political and technical)

US SEC (task forces) FEI (Casey speech) PIOB (Audit) Europe (EFRAG and parliament) Capital Markets (stock exchanges) Large software companies (SAP/Oracle) Data aggregators (Thomson/Reuters)


1 Also in IFRS

2 Convergence

3Multi-language

4No stress


4. Challenges – Future - Reporting4. Challenges – Future - Reporting

Conventional Standards (Concepts) Technology Localization Currencies and Capital Markets Legal

Read my Blog! (or contact me) http://blog.hitachixbrl.com/2007/09/05/financial-reporting-reform-and-xbrl-par

t-i/

http://blog.hitachixbrl.com/2007/09/12/financial-reporting-reform-and-xbrl-part-2


<name<name>Kurt Ramin>Kurt Ramin</name></name>

XBRL: Transforming Financial and Business Reporting

XBRL: It’s Unstoppable

<position> Emeritus Chairman, XBRL International Steering Committee</position>

<email>[email protected]</email> 51 30 44 N 0 05 41 W

<Questions/><Questions/>

Kurt Ramin ：自中世纪的意大利僧侣发明

financial reporting goes global 1 report on global adoption of unified accounting and reporting...

Documents

financial reporting

reporting standards

ig slide

respected slide

pictures slide

topic slide

global ifrs adoption

singapore translations