xbrl enabling financial reporters xbrl international conference – vancouver december 2007
TRANSCRIPT
XBRL enabling financial reportersXBRL International Conference – Vancouver December 2007
An innovative vision
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Innovation at Deloitte
Submitted Ideas
Active Concept
Funded Prototype
Expansion
OperationAll raw
ideasIdeas selected
for further development
Following successful business case, given funding for prototype
development
Following successful prototype,
approved for expansion
Implementation of idea
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Ideas submitted to “The Innovation Zone”
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Ideas reviewed and approved as an “Active concept”
• Innovation council approve idea in principle
• Submitter asked to provide more detail through detailed business case
• Business case approved
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Funds used to prototype potential solution
• Prototype solution built to inform development process
• For XBRL:Prototyped existing tools “pasted” together
Used IFRS taxonomy
Produced valid instances for motor car dealer clients
Rendered report using instance data and “Australian” reporting terms
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Expand use to confirm costs and benefits
• Simulate production environment
• For XBRL:Acquired licenses to develop toolset
Built first taxonomy
Built Special Purpose Financial Report formats
Produced multiple instances and multiple reports
Compared “apples” with “apples” by reproducing previous year end financial reports
Measured time saving
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Production roll out
• Stabilise toolset
• Develop to increase automation
• Expand pilot system:User base to include more Deloitte users and their clients
Taxonomy
Report formats
Analytic capability
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How innovation jumps hurdles
Hurdle #1: Client accounting systems that can not produce XBRL instances
– Re-key or
– Convert
Result: we built a conversion tool
Hurdle #2: We need a financial report that is human (partner) friendly
– Re-key into MS Word and/or MS Excel or
– Automate
Result: we built a publishing tool
Hurdle #3: There is no published Australian Taxonomy
– Sit and wait or
– Get in an create one
Result: we created our own taxonomy
The people perspective
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Learning a new language….XBRL!
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A new approach
From our preliminary planning we devised a new approach to preparing financial reports
Map client trial balance
Calculate & validate report
data
Import data & generate report
Publish report Lodge Review
Map client trial balance to the
Deloitte Taxonomy to
produce a first run instance
Validate instance, compute
missing fact values and
store revised instance
Import instance
document into report
template
Add missing fact values such
as Director details, select
notes and publish to Deloitte
specification
Submit for Partner review and finalise for client sign off
Lodge instance to regulator
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It aint so hard!
• Video #2Map client trial balance
Calculate & validate report
data
Import data & generate
reportPublish report Lodge Review
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Making it real
Map client trial balance
Calculate & validate
report data
Import data & generate
reportPublish report Lodge Review
The pilot system
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Map the trial balance
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Calculate & validate report data
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Import data & generate report
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Publish report
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Review
Do the numbers stack up?
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Financial reporting under “data drudgery”
16%
Administration of client engagement including setting budget, engagement terms and risk review
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Financial reporting under “data drudgery”
63% 20% 1%
To prepare a financial report ready for review by the partner
Review Lodge
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Financial reporting under “XBRL”
-86%
To prepare a financial report ready for review by the partner
This reduction in processing time alone represents a saving of 54% in total time
Map client trial balance
Calculate & validate
report data
Import data & generate
reportPublish report Lodge Review
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More information?
Peter WilliamsCEO Deloitte [email protected]+61 3 9208 7629
Bevan McLeod
Account Director
Deloitte Growth Solutions
+61 3 9208 7767