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    InternatIonalaudItIngand assurance standards Board

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    XBRLisapowerfulandexibleversionofXML,whichhasbeendenedtomeettherequirementsofbusiness

    andnancialinformation.Itenablesuniqueidentifyingtagstobeappliedtoitemsofnancialdata,suchasnet

    income.However,thesearemorethansimpleidentiers.Theyprovidearangeofinformationabouttheitem,

    suchaswhetheritisamonetaryitem,percentageorfraction.XBRLallowslabelsinanylanguagetobeapplied

    toitems,aswellasaccountingreferencesorotherinformation.

    Q2. What is an XBRL taxonomy and how is a taxonomy developed and used?

    XBRLtaxonomies,whicharemadepubliclyavailable2,arethedictionariesthatthelanguageuses.Taxonomies

    specifythetagstobeusedforindividualitemsofinformation,suchasthetagforthelineitemcashandcash

    equivalents.Taxonomiesalsoidentifyrelationshipsbetweenterms,forexample,thetermcashandcashequiva -

    lentsisrelatedtothetermcurrentassets.Businessrulescanalsobeexpressedwithinataxonomy,suchasthe

    beginningbalanceofcashandcashequivalentsplusthenetchangesincashmustequaltheendingbalanceof

    cashandcashequivalents.Insomejurisdictions,reportingentitiesmayaddtothedictionariesofterms,rela -

    tionships,andbusinessrules(thatis,createextensionsinthetaxonomy). Nationaljurisdictionsoftenhavedifferentaccountingregulations,soeachmayhaveitsowntaxonomyfor

    nancialreporting,forexample,aDutchtaxonomy.Taxonomiescanalsobeinternationalandrelevantforthe

    preparationofgeneralpurposenancialstatementsinXBRL,forexample,theInternationalFinancialReport -

    ingStandards(IFRS)taxonomydevelopedandissuedbytheInternationalAccountingStandardsCommittee

    Foundation.Organizationswhoestablishtaxonomiesmaymakechangesinthetaxonomiesfromyeartoyearto

    reectchangesintheunderlyingaccountingframeworkandpreparersofXBRL-taggeddataneedtobeawareof

    themostcurrenttaxonomysothatdataproducedfromXBRLisconsistentandcomparable.

    Whilestandardizedtaxonomiesexist,taggingnancialstatementscanrequireasignicantamountofjudgment

    onthepartofthepreparer.Theremaybemultipletagsthatcouldbeseenasapplicabletoaparticularnancial

    statementlineitem,andpreparerswhoarenotwell-acquaintedwiththetaxonomymaynotbeawareofthetagsthatexistandmaycreateextensionstothetaxonomywhentheyarenotneeded.Thisaffectsthecomparability

    ofXBRL-taggeddataandunderminestheusefulnessofXBRLasoriginallyintended.

    Sincetaxonomiesareperiodicallyrevisedandupdated,preparersneedtoensurethattheappropriatetaxonomy

    hasbeenusedtotagthenancialstatements.

    Q3. How do entities generate XBRL tagged-data?

    ThereareanumberofwaystogenerateXBRL-taggeddata:

    FinancialstatementscanbemanuallytaggedinXBRLusingXBRLsoftwaretoolsdesignedforthispurpose.

    XBRL-awareaccountingsoftwareproductsarebecomingavailablewhichwillsupporttheexportofdatain

    XBRLformat.ThesetoolsallowforXBRLtagstobeappliedwithinthesoftwarepackageatthetransactionalortrialbalancelevel,forexamplethroughtheuseoftheXBRLGlobalLedgertaxonomy.

    CurrentlyintheUnitedStates,specializedentitiesprovideXBRLservicestonancialstatementissuers

    wherebytheentireprocessofmappingnancialstatementstothetaxonomiesandcreatingtheXBRLlesthat

    aresubmittedtotheSecuritiesandExchangeCommissions(SEC)EDGARsystemisoutsourcedbytheissuer

    totheseproviders.

    Theroutewhichanindividualentitymaytakewilldependonitsrequirementsandtheaccountingsoftwareand

    2 XBRLInternationalisanot-for-protconsortiumworkingtobuildtheXBRLlanguageandpromoteandsupportitsadoption.Taxonomiesthatarerecog-

    nizedbyXBRLInternationalcanbefoundathp://.xbl.g/txm/.

    http://web.ifac.org/clarity-center/support-and-guidancehttp://web.ifac.org/clarity-center/support-and-guidancehttp://www.xbrl.org/Taxonomies/http://www.xbrl.org/Taxonomies/http://www.xbrl.org/Taxonomies/http://web.ifac.org/clarity-center/support-and-guidancehttp://web.ifac.org/clarity-center/support-and-guidance
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    systemsitcurrentlyuses,amongotherfactors.Atpresent,themajorityofentitiesareusingbolt-onapplica-

    tionswhichconsistofusingsoftwaretoapplyXBRLtagstothetraditionalnancialstatementsasaseparate

    process(therstbulletpointabove).

    PreparersgenerallydevisecontrolstobeappliedtotheirXBRL-taggingactivities.Thenatureofthesecontrols

    willdifferdependinguponthewayXBRL-taggeddataisgenerated.

    Q4. How may XBRL aect fnancial reporting?

    TheuseofXBRLisexpectedtoprovidebenetsinthepreparation,analysisandcommunicationofbusiness

    information.Itofferspotentialcostsavingsandimprovedaccuracyofinformationforthoseinvolvedinsupply-

    ingorusingnancialdata.XBRLcurrentlyisbeingputtopracticaluseinanumberofcountriesandimplemen -

    tationsofXBRLareexpandingaroundtheworld.

    SharingofinformationinXBRLformatisintendedtoincreasethespeedofhandlingofnancialdata,reduce

    thechanceoferrorandpermitautomaticvalidationofinformation.Usersofnancialdata,includinginvestors,

    analysts,nancialinstitutionsandregulators,likelycanreceive,nd,compareandanalyzedatamorerapidly

    andefcientlyifitisinXBRLformat.XBRLcanhandle(andtranslate)dataindifferentlanguagesandaccount -

    ingstandards.Itcanbeadaptedtomeetdifferentrequirementsanduses.

    ThedemandforthebenetspromisedbyXBRLisunderpinnedbytheever-presentneedofallthoseinthe

    informationsupplychainformoreextensivenancialandnon-nancialinformation,producedonatimely

    basis,inaneasilyacceptableform,andwherepossible,tailoredtospecicneeds.ItisXBRLsabilitytoboth

    speedupthereportingcycleandprovidemore,andre-useable,informationinacost-effectivemannerthatmay

    ultimatelyrespondtothoseneeds.

    XBRLisanenhancementoftraditionalmodesofnancialreporting.Ascurrentlyused,itdoesnotprovide

    moredatathanstandardnancialstatements;itprovidesthedatainaformatthatcomputerscansort,group,

    andcategorize.

    Whenusedcorrectly,XBRLchangestheappearanceandimprovesthedeliverymechanismfornancialstate-

    ments,butitdoesnotaltertheirmeaning.However,nancialinformationprovidedinXBRLinstancedocu -

    mentsisonlyasreliableastheunderlyingnancialdatausedandtheaccuracy,consistencyandcompleteness

    ofthetaggingappliedtothatdataincreatingtheXBRLles.

    Q5. What level o involvement do auditors o the fnancial statements have with XBRL-tagged data?

    TheIAASBscurrentauditingstandardswerenotdevelopedwithXBRLinmindand,accordingly,donotimpose

    anobligationontheauditorwithrespecttoXBRL-taggeddata.

    ISA720,3theIAASBsstandarddealingwiththeauditorsresponsibilitiesrelatingtootherinformationindocu -

    mentscontainingauditednancialstatementsandtheauditorsreportthereon,denesotherinformationas

    nancialandnon-nancialinformation(otherthanthenancialstatementsandtheauditorsreportthereon)

    whichisincluded,eitherbylaw,regulationorcustom,inadocumentcontainingauditednancialstatements

    andtheauditorsreportthereon.XBRL-taggeddatadoesnotrepresentotherinformationascontemplated

    inISA720,becauseitissimplyamachine-readablerenderingofthedatawithinthenancialstatements,rather

    3 InternationalStandardonAuditing(ISA)720,TheAuditorsResponsibilitiesRelatingtoOtherInformationinDocumentsContainingAuditedFinancial

    Statements.AtitsDecember2009meeting,theIAASBapprovedaprojecttoreviseISA720.Theprojectproposalcanbeaccessedat: hp://.fc.

    g/iaasB/Mg-FldL.php?Fid=5139.

    http://www.ifac.org/IAASB/Meeting-FileDL.php?FID=5139http://www.ifac.org/IAASB/Meeting-FileDL.php?FID=5139http://www.ifac.org/IAASB/Meeting-FileDL.php?FID=5139http://www.ifac.org/IAASB/Meeting-FileDL.php?FID=5139
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    thanotherinformation,asitisdened.

    Further,theISAnotesthatthephrasedocumentscontainingauditednancialstatementsreferstoannual

    reports(orsimilardocuments),thatareissuedtoowners(orsimilarstakeholders),containingauditednancial

    statementsandtheauditorsreportthereon.InthemostcommonlyusedmodelofXBRLreportingatpres-

    ent,thenancialstatementsaretaggedinaseparateprocessandledwithregulatorsorwithtaxauthorities.

    BecausethelingofthisXBRL-taggeddataisnotadiscretedocument,theIAASBsdiscussionsatitsSeptember

    2009meetingindicatedthattheBoardisnotoftheopinionthattherequirementofISA720fortheauditorto

    readtheotherinformationforpurposesofidentifyingmaterialinconsistenciesormaterialmisstatementsof

    factwouldbeapplicabletoXBRL-taggeddata.TherequirementintheIAASBsstandarddealingwithreviewsof

    interimnancialinformation 4toreadotherinformationthataccompaniesinterimnancialinformationequally

    wouldnotapplytoXBRLtagged-dataeither.

    TheIAASBsreportingstandardsdonotprecludetheauditorfromevaluatingtheneedsofusersoftheauditorsreportand,ifconsiderednecessary,clarifyingtheassociationwithXBRL-taggeddataintheauditorsreport.

    Thismaybedone,forexample,byidentifyingwhatnancialinformationiscoveredbythatreport,orincluding

    anOtherMatterparagraphintheauditorsreport.

    RequirementsrelatingtoassuranceandauditorinvolvementwithXBRL-taggeddatawilllikelydependonthe

    regulatoryframeworksinwhichsuchdataisled.Atpresent,itisunclearwhetherassuranceislikelytoberequiredonXBRL-taggeddatainthefuturebyregulators 5orrequestedbypreparers,orbyinvestorsorother

    nancialstatementusers.

    Q6. What types o engagements might practitioners be asked to perorm with regard to XBRL?

    WhileauditorsarenotrequiredtobeinvolvedwithXBRL-taggeddataanddonotprovideassuranceonsuch

    datainthecontextofanauditofnancialstatements,theremaybeademandforservicestobeperformedby

    practitioners.Suchservicesmayinclude:

    Agreed-uponproceduresengagementsonXBRL-taggeddata,toassistmanagementinitsevaluationofthe

    XBRL-taggeddataandtheauditcommitteeinitsoversightrole.

    Assuranceengagements,forexample,assuranceonthecontrolsrelatedtotheXBRL-taggingprocessand

    examinationsoftheaccuracyoftheXBRL-taggeddataitself.

    4 InternationalStandardonReviewEngagements(ISRE)2410,ReviewofInterimFinancialInformationPerformedbytheIndependentAuditorofthe

    Entity.

    5 Forexample,U.S.SECReleaseNo.33-9002doesnotcurrentlyrequireanyauditorinvolvementregardingthesubmissionofXBRL-taggeddataprovided

    asanexhibittoacompanysquarterlyorannualreportsorregistrationstatements.Thenalrulespecicallynotesthatanauditorwillnotberequiredto

    applyAUSections550,722,or711totheinteractivedataprovidedasanexhibitinacompanysreportsorregistrationstatements,ortotheviewableinter -

    activedata.TheseU.S.auditingstandardsaddressotherinformationindocumentscontainingauditednancialstatements,interimnancialinforma-

    tion,andlingsunderFederalSecuritiesStatutes,respectively.However,theSEChasstatedthatitexpectspreparersoftaggeddatatotaketheinitiativeto

    developpracticestopromoteaccurateandconsistenttagging.

    a ac h XBrL

    CurrentISAsdonotrequireauditorstoperformproceduresonXBRL-taggeddataaspartofthenancialstatementaudit.Accordingly,theauditorsreportinaccordancewiththeISAsonthenancialstatements

    doesnotcovertheprocessbywhichXBRLdataistaggedortheXBRL-taggeddatathatresultsfromthispro -

    cess,andnoassuranceisgivenontheaccuracy,consistencyandcompletenessoftheXBRL-taggeddataitself.

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    Assuranceengagementsonnancialinformationaspresentedinparticularpre-denedinstancedocuments.

    AdviceontheXBRLimplementationprocess,wherenotprohibitedbyrelevantindependencerequirements.

    PreparationoftheXBRL-taggeddata,wherenotprohibitedbyrelevantindependencerequirements.

    Q7. What is the IAASB doing in the area o XBRL?

    InMarch2009,theIAASBapprovedaprojectproposal6relatingtoXBRLandhasembarkedonaconsultation

    processtodeterminetheneedsofusersofXBRL-taggeddataandothers.ThisconsultationwillassisttheIAASB

    inassessingwhetheritisnecessaryandinthepublicinteresttodevelopapronouncementaddressingXBRL.

    TheXBRLTaskForceiscurrentlyliaisingwithnationalstandardsetters,XBRLInternationalsAssurance

    WorkingGroup,IFACmemberbodies,andotherregionalorganizationsthatarecurrentlyprogressingXBRL

    initiatives.Theinformationgatheredduringtheseinformalconsultationswillbeusedtodevelopamoreformal

    publicconsultationanticipatedinmid-2010.

    Q8. What are the areas that need urther consultation? Aspartofitsconsultationprocess,theIAASBwillneedtoconsideranumberofissuestoassesstheperceptions

    about,andthepotentialdemandfor,auditorassociationwithXBRL-taggeddata,includingassuranceneeds.

    SuchissuesincludehowXBRLisactuallybeingusedindifferentjurisdictionsasitrelatestothelingofan

    entitysnancialstatements,forexample:

    WhetherXBRLdataisrequiredtobeledinadditiontoanentityspaperorelectroniclingwiththerelevant

    authorityorinlieuofsuchlings.Ifthelatteriscontemplated,itwillbeimportantfortheIAASBtounder -

    standthetimelineandhowthiswillchangetheauditreportingmodel.RegardlessofhowXBRLiscurrently

    used,thenatureandextentofitsusebyinvestorsandregulatorsinthefuturemaychangehowauditorsare

    associatedwithXBRLinthefuture.

    TheextenttowhichassuranceoninformationdisseminatedinXBRLformatisrequiredbylaworregulationordemandedinaparticularmarketplace.

    Inaddition,consultationwithpractitionersandpreparerswillbeimportanttounderstandwhetherpractitio -

    nersarebeingrequestedtoperformnon-auditserviceswithregardtoXBRL-taggeddataandwhattheassurance

    needsare.

    Inadvanceofdevelopinganewpronouncementorguidance,itwillbealsocriticalfortheIAASBtoexplore

    whetheritisfeasibletodevelopapronouncementthatwillberelevantinaglobalcontextgiventheevolving

    landscapeofXBRL.

    AtitsDecember2009meeting,theIAASBdiscussedhowbesttoapproachthisconsultation.7Itwasagreedthat

    targetedconsultationwithkeystakeholders,complementedbyabroaderpublicsurvey,wouldservetoinform

    theIAASBsviewsinanticipationofitsJune2010discussions.

    Q9. Where can I fnd more inormation about XBRL?

    VisittheprojecthistoryonXBRLathp://.fc.g/iaasB/PjcH.php?Pjid=0093.Read-

    ersarewelcometocommentonanymattersexplainedinthisQ&AoronXBRLbroadly,oralerttheIAASBto

    relevantdevelopmentsonXBRLintheirparticularjurisdictions.

    6 Theprojectproposalcanbeaccessedat:hp://.fc.g/iaasB/Mg-FldL.php?Fid=4614.

    7 Theproposedconsultationplancanbeaccessedathp://.fc.g/iaasB/Mg-FldL.php?Fid=5097.

    http://www.ifac.org/IAASB/ProjectHistory.php?ProjID=0093http://www.ifac.org/IAASB/Meeting-FileDL.php?FID=4614http://www.ifac.org/IAASB/Meeting-FileDL.php?FID=5097http://www.ifac.org/IAASB/Meeting-FileDL.php?FID=5097http://www.ifac.org/IAASB/Meeting-FileDL.php?FID=4614http://www.ifac.org/IAASB/ProjectHistory.php?ProjID=0093
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