xbrl: the extensible business reporting language 14th biennial forum of government auditors...

XBRL: The Extensible Business Reporting Language

14th Biennial Forum of Government Auditors

20-May-2002

Neal J. HannonChair, XBRL International Education Work Group

Co-Founder, XBRL Center at Bryant College

[email protected]

mailto:[email protected]

Agenda

• XBRL – US and Worldwide• Making the Case for XBRL• Government XBRL Applications• Inside XBRL • The Future of Digital Reporting

XBRL UPDATE

• FDIC to run pilot program for Call Sheets– Proof of concept is complete– RFQ in second quarter of 2002– Pilot program for 2003

• APRA: XBRL in use for all required filings in banking and insurance

industry in Australia• Microsoft and Reuters publish in XBRL

XBRL Update

• The Bank of America/ Moody’s Connection• Dresner and Deutsche Bank• GE Financial (tax consolidations)• Inland Revenue

• 260 people attended Berlin, Germany conference

• Over 50 Japanese companies members of XBRL-Japan

• Total consortium membership projected to exceed 200 by 2003

XBRL – The Technology

– Specification v2• XML• XML Schema • XML Linking Language (“XLink”)

• Computation, Version Control, Mapping, Entity, and other Linkbases are Works in Progress

– Interoperability • Summits I & II• Learn more @ http://www.omg.org/interop/

http://www.omg.org/interop/



XBRL – The Organization

– History• Founded by the AICPA in 1998 (13)• Spin Out into International Organization in 2002 (>140)

– Organizational Matters• Structure of XBRL• Liaison work• Next International Meeting in Toronto June 17 – 21, 2002

– Jurisdictional Growth• Active: Australia, Canada, Germany, IASB, Japan, UK, US,

Singapore• Development: Belgium, Hong Kong, India, Ireland,

Netherlands, New Zealand, South Africa, Spain, Sweden, Taiwan

Jurisdictions

International Steering CommitteeChair

International Steering CommitteeChair

Sitting Members

* Standing

CACA

AUAU

IASB*IASB*

JPJP

USUS

UKUK

SGSG

DEDE

Board of Directors(Trustees)

Members

Spain

Netherlands

…Hong Kong…

Provisional

1st Vice Chair1st Vice Chair

XBRL ManagementCEO

XBRL ManagementCEO

Preparer, Private SectorPreparer, Private Sector

AcademicAcademic

Software & ServicesSoftware & Services

AccountingAccounting

IntermediariesIntermediaries

Investors/CreditorsInvestors/Creditors

Analyst Analyst

RegulatorsRegulators

Public Sector PreparersPublic Sector Preparers

Supply ChainParticipants 2nd VC

2nd VC

Developers

Liaison

Mktg & Comm

Education

Grants

ResearchResearch

General Ledger

SpecificationSpecification

Finance/Audit Committee

Nominating Committee

Executive CommitteeExecutive Committee

Web site CommitteeWeb site Committee1st

1st

At Large ISC Members

2nd2nd

3rd3rd

4th4th

International Working Groups

Jurisdictions

XBRL InternationalGovernance & Operational Structure

International Steering CommitteeChair - Hamscher

International Steering CommitteeChair - Hamscher

Sitting Members

* Standing

CA - Cuthbertson

CA - Cuthbertson

AU -HardidgeAU -Hardidge

IASB* - RaminIASB* - Ramin

JP - Watanabe

JP - Watanabe

US - MatherneUS - MatherneUK - Rodgers

UK - Rodgers

SG - TangSG - Tang

DE - Fuhrmann

DE - Fuhrmann

Board of Directors(Trustees)

Members

Spain

Netherlands

Hong Kong

Provisional

1st Vice Chair – Kurt Ramin

1st Vice Chair – Kurt Ramin

XBRL ManagementCEO (Acting) – Louis

Matherne

XBRL ManagementCEO (Acting) – Louis

Matherne

Preparer, Private Sector - OPENPreparer, Private Sector - OPEN

Academic - OPENAcademic - OPEN

Software & Services - BlakeSoftware & Services - Blake

Accounting - WillisAccounting - Willis

Intermediaries - WatsonIntermediaries - Watson

Investors/Creditors - FlickingerInvestors/Creditors - Flickinger

Analyst - SchnitzerAnalyst - Schnitzer

Regulators - WalengaRegulators - Walenga

Public Sector Preparers - OPENPublic Sector Preparers - OPEN

Supply ChainParticipants 2nd VC – Schnitzer

2nd VC – Schnitzer

Developers - OPEN

Liaison – Coffin (Acting)

Mktg & Comm. - Colgren

Education - Hannon

Grants - Watson

Research - SrivastavaResearch - Srivastava

GL - Cohen

Specification - HamptonSpecification - Hampton

Finance/Audit CommitteeChair - Ramin

Nominating CommitteeChair - Cuthbertson

Executive CommitteeExecutive Committee

Web site Committee Chair - Watson

Web site Committee Chair - Watson

CoffinCoffin

At Large ISC Members

HamscherHamscher

OPENOPEN

OPENOPEN

International Working Groups

XBRL – Taxonomies

• IASB Commercial & Industrial • IASB Commercial & Industrial for AU, NZ, SG,

UK, HK, • Japan Statutory Accounts• Germany Statutory Accounts• International General Ledger • U.S. Commercial & Industrial• U.S. Investment Management• U.S. Federal Government General Ledger (KPMG

developed)• U.S. Non-Profit Form 990 • Other specific sector based taxonomies under

development.

XBRL Support

“I would like to see you develop valuation models that result in consistent, comparable and fair values of assets and liabilities. I would like to see you hone specific, but plain English definitions for the types of information you believe should be included in public disclosure. I would like to see you take your XBRL project a step further, providing account classifications for companies in common industries. In short, I challenge you to turn all of this data into meaningful information for investors.”

- Arthur Levitt, Chairman, U.S. Securities & Exchange CommissionOctober 24, 2000, at the Fall Council of the AICPA (Las Vegas, Nevada)

Microsoft CFO on XBRL

• "Through Internet delivery, XBRL will also provide analysts and investors with extensible financial data to make informed decisions about the company. We see XBRL as not only the future standard for publishing, delivery and use of financial information over the Web, but also as a logical business choice."

John Connors, Chief Financial Officer, Microsoft

The Capital Markets

• “NASDAQ joins shoulder to shoulder in the effort of the XBRL Consortium to adopt this new, freely available technology because it feels that improving the distribution and analysis of corporate results, especially for the 10,000 companies not covered by Wall Street analysts will broaden the market for NASDAQ’s own trading services”

Michael Sanderson, CEO NASDAQ Europe

Transparency in Financial Reporting

• “Reuters’ reputation stands on its ability to communicate and the extensible business reporting language standard it has employed this week to publish accounts online is amongst the most significant of developments in promoting transparency in financial information”

Accountancy Age, 1 November 2001

Message to Congress on Post Enron Environment

• “One large scale and potentially revolutionary private sector initiative that already is underway is a collaboration of growing companies, accounting firms and the AICPA to develop a common “tagging” system for various financial accounts, which goes under the acronym “XBRL”. … I would urge the SEC (and if necessary, urge the Committee to urge the SEC) to encourage this project… One possibility: require EDGAR submissions to be in XBRL by a specific date.”

• Bob Litan, Brookings Institution & Bear Stearns testimony to U.S. Senate Banking Committee on post-Enron, March 14, 2002

Implementations/Vendors

• APRA• FDIC• UK Inland

Revenue • GRE –

Credit & RM

• General Electric

ACCPAC Caseware Creative

Solutions Enumerate FRSolutions MSFT/Great

Plains/Navision Fujitsu Hitachi Hyperion KPMG Moody’s NewTec SAP Semansys Software AG UBMatrix

Edgar-OnLine Moody’s Edgarscan

Morgan Stanley

Reuters Microsoft

Agenda

• XBRL – US and Worldwide

• Making the Case for XBRL• Government XBRL Applications• Inside XBRL • The Future of Digital Reporting

eXtensible Markup Language (XML)

• ……is a meta markup language the World Wide Web Consortium (W3C) considers a universal standard for describing both structured data and the behavior of applications that process the language.

XML is

• Windows• Unix• Macintosh• Mainframe• Linux

• Example:– <DATE>July 26,

1998</DATE>

• Describes the information, not the presentation

• Format neutral

Platform Independent Self-Describing

Content and Context

• Thousands of companies release financial results quarterly

• The contents are not organized. The data must be re-entered into computer applications for interpretation.

• What if financial documents included both – Content (75,044,453)

and– Context

(¥75,044,453=net income for Q1/2001)

XML Markup: What Does it Look Like?

Michael M. Miller8080 Hill CircleLincoln, MA 01738+1 (617) 515-1424Birthdate: 19 October 58

<name>Michael M. Miller</name>

<address>

<street>8080 Hill Circle</street>

<city>Lincoln</city>

<state>Massachusetts</state>

<country>United States of America</country>

<postcode>01738</postcode>

</address>

<telephone>6175151424</telephone>

<birthdate>19/10/1958</birthdate>

Metadata:Information about

information

Metadata:Information about

information

Ordinary informatio

n

Ordinary informatio

n

Structured Content allowsData reuse, comparability, aggregation

Website

Document(Data with Metadata)

Document(Data with Metadata)

Regulatory filings

Tax Return

Bank filingsAccounting system

Explanatory text

Other informationsources

Schemas(Standard Definitions)

PrintedFinancials

Structured Content allowsData reuse, comparability, aggregation

PrintedFinancials

Website

XBRLInstance

XBRLInstance

Regulatory filings

Tax Return

Bank filingsAccounting system

Explanatory text

Other information sources

XBRLTaxonomies

Investor Analytics

XML is Expandable

• Whereas – HTML has a fixed set of tags (<H1>, ,

<PRE>) aimed at data presentation

• XML lets you create your own tags– <sugary-substance>– <Shakespearean-character>– <cash-equivalent>

– The key focus is on content, not presentation

XMLDocument

XMLDocument

Core Schema

Core Schema

Company Specific

Vocabulary

Company Specific

Vocabulary

Industry Specific

Vocabularies

Industry Specific

Vocabularies

Transformation

Tools

Transformation

Tools

The XML PuzzleThe XML Puzzle

What is XBRL?

• XBRL is a freely available electronic language for financial reporting

• XML-Standards based method to :– Prepare, – Reliably Extract,– Exchange on a system to system basis– Publish company financial data

• Potential for extensive use in government accounting

XBRL

XML and XMLenabling technologies

X-Link, X-Schema

SGMLStandard Generalized Markup Language

XBRL Builds on XML and SGML

Industry Developed,Supported

W3C Supported

2001

1998

1986

ISO Standard

Evolution to Web Services

TechnologyInn

ovat

ion FTP, E-Mail,Gopher

Web Pages

Web Services

TCP/IP HTML XML

Connectivity

Presentation

Automation

Browse the Web

Program the Web

Text Files

Improves the way companies -- and applications -- share business reporting information

How XBRL Solves ProblemsHow XBRL Solves Problems

1. Client Specific Data1. Client Specific Data 3. XBRL information flows freely across the Internet or VPN, LAN and WAN

3. XBRL information flows freely across the Internet or VPN, LAN and WAN

5. XBRL data is used in the government application and/or other comparable programs

5. XBRL data is used in the government application and/or other comparable programs

Financial data; Financial data; multiple systemsmultiple systems FDIC Call FDIC Call

ReportReport

Common XBRL

Vocabulary

2. Application data is selected, cleaned and tagged in XBRL

2. Application data is selected, cleaned and tagged in XBRL

4. XBRL-tagged data is mapped into applications specific data such the FDIC’s Call Reports

4. XBRL-tagged data is mapped into applications specific data such the FDIC’s Call Reports

XML/XBRL

translator

XML/XBRL

translator

Client COA toFDIC Taxonomy

FDIC Taxonomy

What software ‘sees’ is the differentiator and drives benefits

• XBRL is:– NOT a new accounting standards but enhances

the distribution and usability of existing financial statement information

– Enabler and an extension for native-XML database functionality* for all financial statement information

• *Can be stored as a form or a separate financial fact

Benefits

Raw XBRL

<numericContext id="rg.cy00.jpy" cwa="false" precision="4">

<entity><identifier

scheme=“Ticker">rg</identifier></entity><period>

<startDate>2000-01-01</startDate><endDate>2000-12-31</endDate>

</period><unit>

<measure>iso4217:jpy</measure></unit>

</numericContext>

Rock Gravel Corp.Period from 1 Jan 2000 to 31 Dec 2000, In Yen

Precise to 4 digits

Rock Gravel Corp.Period from 1 Jan 2000 to 31 Dec 2000, In Yen

Precise to 4 digits

XBRL as a Translator

• Accounting is fragmented– Hundreds of accounting software packages– Many correct ways to interpret GAAP and

Governmental accounting

• XBRL as common denominator– Each set of financial data can conform to a

single taxonomy.

Who defines the tags?

• Tags are defined by industry consortiums • Each industry’s standard tags are commonly

referred to as a taxonomy

XBRL Taxonomies in 2002

• Best practices– e.g. ast.amz.goodwill = Amortization of Goodwill– e.g. Assets have “current” & “non current”

children– e.g. Reusable common components taxonomy

• Focused development efforts– IAS Taxonomy: Core financials, Core + Notes– US GAAP C&I Taxonomy– UK GAAP C&I Taxonomy– Inland Revenue “Computation” Taxonomy– FDIC Taxonomy (US)– Canadian GAAP, others.– US Standard GL taxonomy (Federal Govt.)

XBRL for General Ledger

Developing an international core for reporting general ledger transactions

XBRL.org Specifications

ExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

Investmentand Lending

AnalysisProcesses

Participants

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

XBRL for General Ledger XBRL for

EDGAR Filings

XBRL for Audit Schedules

XBRL for Tax Filings

XBRL for Business Event Reporting

Software Vendors

ManagementAccountants

Companies

XBRL for Financial Statements

XBRL- General Ledger Goal

• A cross-jurisdictional, cross-industry fact-gatherer for representing the information found in a “General Ledger”, internationally. Bringing “standardization” to

Bombastic, Imperative and Clairvoyant, Inc.Payroll Journal

Account Description Debit Credit

1005 Cash 7,232.96

2300 FICA Payable 1,053.56

2800 Garnish Payable 545.00

…

Initial EEC

Date 9.1

Requirements for XBRL GL

• 3rd party software to create journal entries to pull into client GL system

• To move unposted and posted GL information from divisions to consolidating systems, budgeting ,forecasting, reporting tools, and back

• To upload general ledger information, payables, receivable files and open balances for system migration or interfacing with Internet ASP

A Standard Format for:


• From client's systems to CPA• From one CPA system (eg, write-up) to

another (eg, tax) in an international context.

• Open receivables, open payables, inventory balances, and other asset-based measures for sharing with banks

• Detail drill-down for performance measurement reporting items

Standard Format to move information

Standard Format to Represent


• Extensible for any type of mandatory audit trail

• Extensible for meeting any "sub-ledger" need

• Designed as XBRL spec-compliant but for easy translation to other uses

• Cannot assume that XBRL period, entity, unit and other context (numeric, nonnumeric) will automatically be there.

XBRL GL Core

XBRL GL Custom

Business Transactions

XBRL-GL: From Business Transactions to Financial Statements

XBRL For Financial Statements

Recommended status 3/15/02

Unique to each organization

Not XBRL; function of other consortiums

XBRL GL Core

XBRL GL Custom

Government Transactions

XBRL-GL: From Government Transactions to Financial Statements

XBRL For Financial Statements

Federal Government Core

Health and Human Services

Not XBRL; function of other consortiums

“General Ledger” Holds More Valuable Information

Components to Make Things Happen

• XBRL-GL Taxonomy - Uses Specification 2.0

– Core Schema• Basic Concepts (with definitions) as structure for

extension

– Presentation linkbase• Default presentation order

– Label linkbase• Default human readable labels

Overview of the Structure of the GL Taxonomy

Three Primary Levels

accountingEntries

entryHeader

entryDetail

GL Journal BatchesTarget and Source ApplicationCreatorOrganization

GL Journal HeaderJournal Identifiers

Entered byEntry DatePosting DateHash Totals

GL Journal Detail LinesDetail IdentifiersLine NumberAmountAccountXBRL Reference

Reconciliations:AR

3. XBRL GL entriesType=“balance”summarized amounts in account, period in time

2. XBRL GL entriesType=“entries”represents individual detail of entries

4. XBRL US ciaccountsReceivableTradeNet.accountsReceivableTradeGross

1. XBRL GL: entriesType=“assets”represents AR aging

USGL

USAR

ContinentialGL

or

xbrlElement=“accountsReceivableTradeNet.accountsReceivableTradeGross”xbrlTaxonomy=“{usgaap}”

Are all documents from 1. reflected in the detailed entries of 2.? (documentType=“invoice”,

etc.)

Do the entries in 2 sum up to the balances in 3?

Do the entries in 2 or 3 map to the total in 4??

Cash Reconciliations and Tests

3. XBRL GL entriesType=“balance”summarized amounts in account, period in time

2. XBRL GL entriesType=“entries”represents individual detail of entries

4. XBRL US cicashAndCashEquivalents.Cash

1. XBRL GL: entriesType=“assets”represents detail of invoices, payments, etc.

from both AR and AP

USGL

USAR

ContinentialGL

or

xbrlElement=“cashAndCashEquivalents.Cash”xbrlTaxonomy=“{usgaap}”

USAP

documentType:check debit-memo

credit-memofinance-charge

invoice remindervoucher manual-adjustment

other

XBRL-GL

• Files and more information can be found at: www.xbrl.org/gl/gl.htm

http://www.xbrl.org/gl/gl.htm

Agenda

• XBRL – US and Worldwide

• Making the Case for XBRL• Government XBRL

Applications• Inside XBRL • The Future of Digital Reporting

XBRL – US Federal Agencies

• Joint Financial Management Improvement Program (JFMIP) 2001 report

JFMIP includes Department of Treasury,

General Accounting Office, Office of Management and Budget, and the Office of Personnel Management.

• “Core Financial System Requirements” states: ”To meet JFMIP interoperability requirements, the Core Financial system should: support emerging XML-based specifications for the exchange of financial data such as Extensible Business Reporting Language (XBRL).” Value Added Feature

• http://www.jfmip.gov/jfmip/.

http://www.jfmip.gov/jfmip/


BusinessOperations



AnalysisProcessesProcesses

ParticipantsParticipants


Investors

FinancialPublishersand Data

Aggregators

Regulators

XBRL for G/L Journal Entry

ReportingXBRL for

EDGAR Filings





Software Vendors


Companies

Commercial Financial Information Supply Chain


BusinessOperations



AnalysisProcessesProcesses

ParticipantsParticipants


PublicHigher

Echelons

Policy Setting Organizations

XBRL for G/L Journal Entry

ReportingXBRL for

EDGAR Filings





Software Vendors


Organizations

Government Financial Information Supply Chain

Individual standards agreed to by

the Director of OMB, the Comptroller General, and

the Secretary of the Treasury

Interpretations related to the SFFASs issued by OMB in accordance with the procedures outlined in OMB

Circular A-134, Financial Accounting Principles and Standards.

Requirements contained in OMB's Form and Content Bulletin in effect for the period covered by the financial statements.

Accounting principles published by authoritative standard setting bodies andother authoritative sources (a) in the absence of other guidance in the first

three parts of this hierarchy, and (b) if the use of such accounting principlesimproves the meaningfulness of the financial statements.

• Department of Agriculture• Department of Commerce• Department of Defense• Department of Education• Department of Energy• Department of Health and Human Services• Department of Housing and Urban Development• Department of the Interior• Department of Justice• Department of Labor• Department of State• Department of Transportation• Department of the Treasury• Department of Veterans Affairs

Federal Generally Accepted Accounting Principles Hierarchy

• Agency for International Development• Environmental Protection Agency• Federal Emergency Management Agency• General Services Administration• National Aeronautics and Space Administration• National Science Foundation• Nuclear Regulatory Commission• Office of Personnel Management• Small Business Administration• Social Security Administration

SFFAS Promulgation Process

Treasury http://www.treas.gov

OMB http://www.whitehouse.gov/omb

GAO http://www.gao.gov

Appoints

Federal AccountingStandards Advisory Board

FASAB(9 Board Members)

Appoints

Draft Statementsof Federal FinancialAccounting Standard

SFFAS

Draft Statementsof Federal FinancialAccounting Standard

SFFAS

Statements of Federal Financial Accounting StandardsAmendments

SFFAS 1 - Accounting for Selected Assets and Liabilities

SFFAS 2 - Accounting for Direct Loans and Loan Guarantee SFFAS 18

SFFAS 3 - Accounting for Inventory and Related Property

SFFAS 4 - Managerial Cost Accounting Concepts and Standards

SFFAS 5 - Accounting for Liabilities of the Federal Government SFFAS 12

SFFAS 6 - Accounting for Property, Plant and Equipment SFFAS 11, 14 & 16

SFFAS 7 - Accounting for Revenue and Other Financing Sources SFFAS 13

SFFAS 8 - Supplementary Stewardship Reporting SFFAS 11, 14 & 16

SFFAS 9 - Deferral of Implementation Date for SFFAS 4

SFFAS 10 - Accounting for Internal Use Software

SFFAS 15 - Management’s Discussion and Analysis

SFFAS 17 - Accounting for Social Insurance

http://www.financenet.gov/fasab.htm

Statements of Federal Financial Accounting StandardsAmendments

SFFAS 1 - Accounting for Selected Assets and Liabilities

SFFAS 2 - Accounting for Direct Loans and Loan Guarantee SFFAS 18

SFFAS 3 - Accounting for Inventory and Related Property

SFFAS 4 - Managerial Cost Accounting Concepts and Standards

SFFAS 5 - Accounting for Liabilities of the Federal Government SFFAS 12

SFFAS 6 - Accounting for Property, Plant and Equipment SFFAS 11, 14 & 16

SFFAS 7 - Accounting for Revenue and Other Financing Sources SFFAS 13

SFFAS 8 - Supplementary Stewardship Reporting SFFAS 11, 14 & 16

SFFAS 9 - Deferral of Implementation Date for SFFAS 4

SFFAS 10 - Accounting for Internal Use Software

SFFAS 15 - Management’s Discussion and Analysis

SFFAS 17 - Accounting for Social Insurance


Approves

Treasury http://www.treas.gov

OMB http://www.whitehouse.gov/omb

GAO http://www.gao.gov

http://www.treas.gov/

http://www.whitehouse.gov/omb

http://www.gao.gov/





http://www.gao.gov/



http://www.gao.gov/



http://www.gao.gov/

Taxonomy Development and ResourcesGovernment Policy

• GAP• OMB Form and Content• USSGL Crosswalk to OMB

F&C• USSGL• TFM• SFFAS/SFFAC

OMB Form and Content

ASSETS1. Entity

A. Intragovernmental1. Fund Balance With Treasury2. Investments3. Accounts Receivable, Net4. Other5. Total Intragovernmental

B.1. Investments2. Accounts Receivable, Net4. Cash and Other Monetary Assets5. Inventory and Related Property, Net6. General Property, Plant and

Equipment, Net7. Other

C. Total Entity

Treasury USSGL

Crosswalk to OMB Form and

ContentGLA Attributes

1340 X,Y,Z1349 A,B,C1610 X,Y,Z

Potential Financial Statement Submission Process

USSGL PCTB& Crosswalk

elements

USSGL PCTB& Crosswalk

elements

Instance Document

Build

Instance Document

Build

Post close T/B

Proprietary COA

Post close T/B

Proprietary COA

Post close T/BUS Standard

General Ledger

Post close T/BUS Standard

General Ledger

Mapping to US Standard

General Ledger

Mapping to US Standard

General Ledger

Convert to Treasury Crosswalk elements

Convert to Treasury Crosswalk elements

Entity AFederal Financial

Statements

Entity AFederal Financial

Statements

Other entities’ Financial Statements

Other entities’ Financial Statements

Aggregationand/or

Consolidation

Aggregationand/or

Consolidation

Consolidated Federal Financial Statements


Other consolidated

Financial Statements

Other consolidated

Financial Statements



Aggregationand/or

Consolidation

Aggregationand/or

Consolidation

Federal TaxonomyFederal

Taxonomy

Custom TaxonomyCustom

Taxonomy

Blue = required tool

Agenda

• XBRL – US and Worldwide• Making the Case for XBRL• Government XBRL Applications

• Inside XBRL • The Future of Digital Reporting

Transport envelope

TransportLayer

(SecureProtocols)

Content Layer(Payload

Language)

ApplicationLayer

(ValidationRules)

Internet

XBRL Instance Document

Producers Consumers

FTPHTTPS

SOAP

S/MIME

OFX2 ebXML

Softwaredevelopers

Business Rule Documents

DataRepository

Meta DataRepository

Alternativeprotocols

Producers

XBRL Taxonomy Documents

How will XBRL impact content based businesses?

• Intermediaries’ value added does not change– Completeness – History and breadth– Consistency – Data linkage via unique

identifiers– Availability, Anonymity of access– Customization, Convenience

• Intensifies competition over unique content• Producer & consumer behaviors change

slowly

ProducerConsumer

Intermediary

Intermediary

Why XBRL instead of our own Schemas?

• Don’t reinvent the features of XBRL– Item types – financial parameters– Predefined concepts (labels, references)– Entities, periods, segments, scenarios– Extensibility using XLink

Business Informationthat is

• Financial in nature• Enhances standard definitions• Refers to multiple entities• Refers to multiple periods

InformationProducer

9,000€ 2.5m 57%EPS

InformationProducer

InformationProducer

InformationConsumer

InformationConsumer

InformationConsumer

XBRL uses XLink to represent all relationships between data elements

<element id=“ast.inv”>

<element id=“ast.cur”>

Definition:more

general

<Label>Current Assets</Label>

label

<Label>Inventory</Label>

label

A formal explanation of

Inventory in the

Accounting Literature

reference

Presentation:before

<element id=“ast.fixed”>

XLink allows customization and explicit, modular changes to reusable material

<element id=“ast.inv”>

<element id=“ast.cur”>

Definition:more

general

label

label

A formal explanation of

Inventory in the Accounting

Literature

reference

Presentation:before

<element id=“ast.fixed”>

<Label> </Label>

<Label> </Label>

Agenda

• XBRL – US and Worldwide• Making the Case for XBRL• Government XBRL Applications• Inside XBRL

• The Future of Digital Reporting

Present And Near Future Uses of XBRL

• B2G - Regulatory Applications– Australian Prudential Regulatory Authority

(2001)– US Federal Depository Institution Corp. (2003)– UK Inland Revenue (2004)

• B2L – Business to Lenders– Bank of America / Moody’s – Credit Analysis

(2003)– Deutsche Bank – same

• B2M – Business to Markets– Traditional financial reporting (2002)– Business performance reporting (2003)

• Internal applications

Neal J. Hannon, CMAChair, Education Work Group, XBRL International

[email protected]

Photo Credit: Dave Garbutt, FRS, South Africa

Questions?

mailto:[email protected]