xbrl-us dec2009 webcast slides

8/14/2019 XBRL-US Dec2009 Webcast Slides

1/63

XBRL for Filers: Implementing

XBRL for SEC Reporting

XBRL US Webinar

December 16, 2009

1


2/63

Overview of SEC final rule for interactive data Planning for XBRL Reporting

Organizing Data 4 Key Steps Map

Extend Tag

Create XBRL document

Quality Control and Validation

Updates: Taxonomy developments

Results from first XBRL filings

Questions and next steps

Agenda

2


3/63

Lynne Hasluck, Communications Manager, XBRL US

Eric Evans, VP Business Development, EDGAR Online

Louis Matherne, CPA, Director - XBRL Services,

Clarity Systems

Campbell Pryde, Chief Standards Officer, XBRL US

Speakers


4/63

SEC Final Rule

Summary Requires companies to provide financial statements in

XBRL.

Applies to domestic and foreign companies using U.S.

GAAP and, eventually, to foreign private issuers using IFRSissued by the International Accounting Standards Board.

Includes primary financial statements, notes, and financialstatement schedules, plus company identifier information

Is a supplement, not a replacement to the traditional

electronic filing formats in ASCII or HTML. Filings would be subject to limited liability within 24

months of the time the filer first is required to submitinteractive data files. The limited liability provision willterminate completely on October 31, 2014.


5/63

Phase-in

Three year phase-in schedule: In year 1, the final rules would apply only to domestic and

foreign large accelerated filers that use U.S. GAAP andhave a worldwide public float above $5 billion.

Quarterly reports on form 10-Q or annual report on Form 20-F orForm 40-F containing financial statements for a fiscal periodending on or after June 15, 2009.

In year 2, all other domestic and foreign large acceleratedfilers using U.S. GAAP would be subject to interactive data

reporting. Quarterly reports on form 10-Q or annual report on Form 20-F or

Form 40-F containing financial statements for a fiscal periodending on or after June 15, 2010.


6/63

Phase-in (continued)

In year 3, all remaining filers using U.S. GAAP,

including smaller reporting companies, and all

foreign private issuers that prepare their financial

statements in accordance with IFRS as issued bythe IASB would be subject to the same interactive

data reporting requirements. Quarterly reports on form 10-Q or annual report on Form 20-F or

Form 40-F containing financial statements for a fiscal periodending on or after June 15, 2011.


7/63

Submission Format

Interactive data would be required with a

company's annual and quarterly reports,

transition reports, and Securities Act registration

statements.


8/63

Grace Period

Each companys initial XBRL filing will have a

30 day grace period

In year 2, for first filing with detailed footnote

tags, filers will receive a 30 day grace period


9/63

Company Website

XBRL formatted financials must be posted on

the companys corporate website, if it

maintains one. For at least 12 months on an issuers website.

A company cannot use a hyperlink to the SEC website to satisfy the

requirement of posting the interactive data on its own website.


10/63

Data Tagging Details

US GAAP Filers must use tags released by XBRL US

and required by the EDGAR Filer Manual.

Similarly, filers using IFRS as issued by the IASB, will

be required to tag their financial information usingthe most recent list of tags for international financial

reporting, as released by the IASCF and specified in

the EDGAR Filer Manual.


11/63

Data Tagging Details (cont)

The filers complete financial statements (i.e. the face of the

financials) would be required to be tagged in detail.

Footnote tagging is broken out into 4 different levels:

Level 1 Each complete footnote tagged as a single block of text.

Level 2 - Each significant accounting policy within the significant

accounting policies footnote tagged as a single block of text.

Level 3 Each table within each footnote tagged as a separate block of

text.

Level 4 Within each footnote, each amount (i.e. monetary value,percentage, and number) is required to be separately tagged.

Narrative disclosures are not required.

Level 1 would be required in the first submission, Levels 1

through 4 would be required starting one year from the filers

initial required submission.


12/63

Previewer and Validation

The SECs website contains a portal for

companies to make test submissions.

Companies may also use the previewer

function to see how their files will look on the

viewer prior to making a submission.


13/63

Learn about XBRL and your requirements

Where is your company in the mandate?

What MUST you do and why?

What CAN you do and why?

Leverage XBRL US resources

Assemble the oversight team

Develop the project plan, workflow and quality control steps

Staff according to plan

Identify internal personnel

Get training

Hire consultants

Outsource according to plan

Planning

13


14/63

Develop review, approval and filing procedures

Who must be engaged?

Learn taxonomies

Download taxonomies or use online viewer

Understand industry entry points, how to find needed items

Understand collections of information by Statement or Note

Understand how to differentiate individual facts

Learn about the tables and which ones affect your company in Year 1 and subsequent years

Learn about, select and implement software and services

Determine which filings will be tagged

Primary financial statements only?

Notes detailed or block tagged?

Planning

14


15/63

Outsource

Leverage expertise of service provider

Partnering with a known entity, idea-sharing

Less strain on internal resources

In-house

Greater control

Easier for system integration

Faster close

Lower out-of-pocket costs

Outsource or in-house

15


16/63

External reporting

Special projects

Legal Audit committee

Internal/external auditors

Investor relations IT

others

Who should be involved

16


17/63

Where to find US GAAP Taxonomies -

2009

17

Now available

for public use


18/63

www.xbrl.us

Software and Services Comparison Matrix

http://xbrl.us/Learn/Pages/ToolsAndServices.aspx

Taxonomy http://xbrl.us/taxonomies/Pages/US-GAAP2009.aspx

Case studies http://xbrl.us/Learn/Pages/CaseStudies.aspx

Newsletter signup http://xbrl.us/News/pages/newsletter.aspx

SECs XBRL information portal: http://xbrl.sec.gov NEW!

View XBRL-formatted financial statements http://www.sec.gov/spotlight/xbrl/filings-

and-feeds.shtml

SECs XBRL Submission Previewer https://datapreview.sec.gov/previewer/

SECs Information for EDGAR Filers (EDGAR Filer Manual)

http://www.sec.gov/info/edgar/edmanuals.htm

Staff Observations from Review of Interactive Data Financial Statements

http://www.sec.gov/spotlight/xbrl/staff-review-observations.shtml

Resources
http://www.xbrl.us/http://xbrl.us/Learn/Pages/ToolsAndServices.aspxhttp://xbrl.us/taxonomies/Pages/US-GAAP2009.aspxhttp://xbrl.us/Learn/Pages/CaseStudies.aspxhttp://xbrl.us/News/pages/newsletter.aspxhttp://xbrl.sec.gov/http://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttps://datapreview.sec.gov/previewer/http://www.sec.gov/info/edgar.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/info/edgar.shtmlhttps://datapreview.sec.gov/previewer/http://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://xbrl.sec.gov/http://xbrl.us/News/pages/newsletter.aspxhttp://xbrl.us/News/pages/newsletter.aspxhttp://xbrl.us/Learn/Pages/CaseStudies.aspxhttp://xbrl.us/taxonomies/Pages/US-GAAP2009.aspxhttp://xbrl.us/taxonomies/Pages/US-GAAP2009.aspxhttp://xbrl.us/taxonomies/Pages/US-GAAP2009.aspxhttp://xbrl.us/Learn/Pages/ToolsAndServices.aspxhttp://www.xbrl.us/


19/63

Considerations when choosing tool or

service

BOTH

Support hours, form

Training

Map to internal financialmanagement system

Does detailed tagging

Does block tagging

Provides rendering

Has a repeatable process

Security policies

Maintains user groups

Provides validation

Software tool only

Speed of taxonomy loading

Web based, ASP, PC-based?

File size if PC-based

Handling changes to taxonomy

Software updates

Processing times

Search capabilities

Service only Turnaround times

Provides alternative tag options

19


20/63


21/63

Map

Identify and document the individual taxonomy concepts that bestmatch the concepts disclosed in the company financial statementsand disclosures.

Extend

Create the company extension taxonomy as an extension of the USGAAP taxonomies (UGT)

Tag

Associate the fact values being reported in a given filing with specificelements in the company taxonomy. This step includes definingperiods, units of measures, and other aspects specific to that report.

Create

Generate the XBRL tagged and formatted document that is submission ready forthe SEC

Organizing Data 4 Key StepsQuality Assurance

&

Validation

Review and approve concept selections

Validate extension against the SEC EDGAR Filer Manual Rules and determine

that selected concepts are included

Validate tagging against the SEC EDGAR Filer Manual Rules and determine that

correct concepts are used

Validate instance against the SEC EDGAR Filer Manual Rules, review rendering

using the SEC Previewer, and perform test submission


22/63


23/63

Mapping Process using a Service Provider


24/63

Compare and map source document


25/63

Finding Elements in the

US GAAP Taxonomy

25

Taxonomy

Electronic dictionary of business reporting

elements used to report business information


26/63

Extend

Create the company extension taxonomyas an extension of the US GAAPtaxonomies (UGT)

Steps

Create relationship groups for company statements,disclosures, and parentheticals

Add company specific elements Model company statements and disclosures in the new groups

Create company specific presentation labels

Create mathematical validations

Organizing Data Step 2

If outsourcing

Make sure the extension tells

your story


27/63

Create company relationship groups

27


28/63

Adding new elements

28

Element

Financial reporting

concept as defined in

XBRL


29/63

Common steps that result in extensions:

Create relationship groups for company statements, disclosures,

and parentheticals

Add company specific elements

Model company statements and disclosures in the new groups

Create new element relationships

Change the ordering of elements to reflect the company financial

statements

Select preferred labels for presentation

Create element labels to conform to the companies human

readable presentation and definitions for company specificelements

Create mathematical validations

The Company Taxonomy Extension

29

Anymodification to the

XBRL US GAAP Taxonomies

is an extension


30/63

Tag

Associate the fact values being reported in a given filingwith specific elements in the company taxonomy. Thisstep includes defining periods, units of measures, andother aspects specific to that report.

Steps

Determine appropriate taxonomy, context, units ofmeasure, scale

Tie financial statement reported facts with taxonomy

elements

Assure conformance with SEC EDGAR Filer ManualRules


If outsourcing

Be sure to review tagging selection


31/63

Instance document XML file that contains

business reporting information and represents

a collection of financial facts and report-

specific information using tags from one ormore XBRL taxonomies

What is the instance document

31

Context

Entity and report-specific information(reporting period, segment information, and

so forth) required by XBRL that allows tagged

data to be understood in relation to other

information


32/63

Integrated XBRL Tagging


33/63

Validation


34/63

Create

Generate the XBRL tagged and formatteddocument that is submission ready for theSEC (package of several files)

Steps

Generate XBRL document using tool of choice

Validate against SEC EDGAR Filer Manual Rules Review rendering with SEC Private Previewer

Perform test submission with SEC for validation


Create instance (XBRL) document


35/63

Create the XBRL Document


36/63

The SEC Private Previewer

36

https://datapreview.sec.gov/preview

er/https://datapreview.sec.gov/previewer/


37/63

The XBRL Files

37


38/63

SEC Submission


39/63

Focus on the mapping and taxonomy extension - Element selection

documentation and a well crafted custom company taxonomy will greatly simplify

the XBRL document creation process

Stick to the workflow -Jumping ahead often results in dead ends and rework.

Avoid the idea of building the company taxonomy on the fly

Create new relationship groups for your company financial statements, each

disclosure, and parentheticals this will provide a taxonomy that is easier to work

with and validate

Use existing elements from the XBRL US GAAP Taxonomies if it represents the

appropriate financial concept regardless of its location

Create company standard labels for all elements use terse labels where

needed for repeating captions. Labels should correspond to the filers print

report

Validate early and often errors accumulate and become harder to fix

Instance document creation

best practices

39


40/63

Mapping DocumentThorough documentation and review of elementselection and creation with intended associations

Tagging Report

Review tagging report to assure proper financialstatement fact to element association with correctattributes.

Rendering

Use SEC Submission Previewer

https://ideapreview.sec.gov/previewer/ Test Submission with SEC

The final arbiter for validation

Key Quality Assurance Steps

40
https://ideapreview.sec.gov/previewer/https://ideapreview.sec.gov/previewer/https://ideapreview.sec.gov/previewer/


41/63

Comply withSEC EDGAR Filer Manual Rules Validation criteria include:

XBRL 2.1 Compliant

Inclusion of Document Entity Information (DEI)

Consistency in file names, e.g., abc_20091231.xml

Exclusion of invalid ASCII characters

Use of entire 10-digit CIK

Provide absolute paths for references to base taxonomies

Proper namespace declaration

The full list is available on the SEC website and in the EDGAR Filer Manualhttp://www.sec.gov/info/edgar/xbrlerrormessages.htm


XBRL Validation

41
http://www.sec.gov/spotlight/xbrl/publicvalidationcriteria.htmhttp://www.sec.gov/spotlight/xbrl/publicvalidationcriteria.htmhttp://www.sec.gov/spotlight/xbrl/publicvalidationcriteria.htmhttp://www.sec.gov/spotlight/xbrl/publicvalidationcriteria.htmhttp://www.sec.gov/spotlight/xbrl/publicvalidationcriteria.htmhttp://www.sec.gov/spotlight/xbrl/publicvalidationcriteria.htm


42/63

Invalid ASCII characters smart quotes and

other traps

Incorrect file names

Mixed decimal attributes in a group

Same standard labels on different elements

Elements in the extension but not in apresentation group

Calculation inconsistencies

Sample Validation Problems

42


43/63

An XBRL Table provides a way to express

multidimensional relationships.

With an XBRL Table the preparer can tag data for line

items that are disaggregated along one or moreaxes.

43

The XBRL Table


44/63

44

Property, Plant, and Equipment Type

(Dollars in millions) Land Building Equipment Total

Property, plant, and equipment $ 2,345 $ 528 $ 1,552 $ 4,425

Accumulated depreciation - 144 498 642Property, plant and equipment, net $ 2,345 $ 384 $ 1,054 $ 3,783

[Line Items]primary domain

[Table]

[Domain Members]

[Domain][Axis]

The XBRL Dimension

XYZ Company and Subsidiaries

Property, Plant, and Equipment Summary


45/63

[Text Block]

XYZ Company and Subsidiaries

Property, Plant, and Equipment Summary

45

Property, Plant, and Equipment Type

(Dollars in millions) Land Building Equipment Total

Property, plant, and equipment $ 2,345 $ 528 $ 1,552 $ 4,425

Accumulated depreciation - 144 498 642Property, plant and equipment, net $ 2,345 $ 384 $ 1,054 $ 3,783

The XBRL Dimension


46/63

46

From the

US GAAPTaxonomy


47/63

Dimension Elements

Table contains one or more Axes, a Domain per

Axis, Domain Members, and Line Items

Axis intersection of 2 domains

Domain a group with common characteristics Domain Member a member of the group

Line Items the concepts making up the primary

domain

47

St t t f Sh h ld E it


48/63

Statement of ShareholdersEquity

as a Dimension

[Line Items]primary domain

[Domain Members]

[Domain]

Beginning Balance

Ending Balance


49/63

Do not create a new table merely because the axes of a table arerotated. Think pivot table instead

Line items can be used outside of a table, but their value will be

the same in all locations where the entity-wide context

(dimensional [Domain] default) is used

A line item and domain member taken together defines a fact(table data point)

Context = Dimension (Axis) = Member Calculations in XBRL do

not function across context

Multiple Domain elements meant to be populated by extended

preparer Members For example, Segment, Geographical [Domain]

XBRL Table key considerations

49

U d t T D l t


50/63

The process

Coordinate with Financial Accounting

Standards Board

Pipeline of New Pronouncement

Prioritize effective date

Model Publish

Updates: Taxonomy Developments

U d t T D l t


51/63

2009 Developments Accounting Standards Codification

replaces existing authoritative accounting pronouncements

XBRL US has provided an additional taxonomy reference linkbase and

schema entry points that can be added to the 2009 taxonomy

effective for financial statements with interim or annual periods ending

after September 15, 2009

US Financial Reporting Taxonomy 2009 Addendum-1 Incorporates new FASB Pronouncements issued since current taxonomy

was released

over 200 new elements developed

In use and available for public review/comment


U d t T D l t


52/63

US Financial Reporting Taxonomy 2009 Addendum-1

Includes:Superseded FASB Standard Accounting Codification Reference

FAS 165 Topic 855

FSP FAS 107-1 and APB 28-1 Topic 825

FSP FAS 115-2 and FAS 124-2 Topic 320

FSP FAS 132(R)-1 Topic 715

FSP FAS 140-4 and FIN 46(R)-8 Topics 810 and 860

FSP FAS 141(R)-1 Topic 805

FSP FAS 157-4 Topic 820

FSP FAS 132(R)-1 and FSP FAS 140-4 and FIN 46(R)-8 were included in the 2009

Taxonomy, but there were incremental elements and corrections made in the

Addendum-1 Numerous, pervasive, significant pronouncements



53/63


54/63


55/63

900+ submissions to date

83% + used service provider

28 companies formatted a 10K; all others 10Q

Companies submitting 2+ filings typically used

same service/provider

Results to date


56/63

Average 11% of elements are extensions

Range from 0 to 52%

Extensions created:

Aggregate elements not available in the taxonomy creating a new element

that captures several elements added together

Develop new elements that were more specific than what was available

Reflect accounting changes if the 2008 taxonomy was used, which did not

include new FASB pronouncements

Use new FASB pronouncements that came out in the last few months, even

since the 2009 taxonomy release was published

Depict elements excluded from the taxonomy as not allowed in US GAAP

Provide extensions for the same element in Cash Flow and Income statement

Reflect industry specific extensions not yet covered in the taxonomy

Results to date


57/63

12


58/63

What to consider in element selection: Standard element with a narrower definition appears more

appropriate

Standard element with a broader definition appears more appropriate

New element created, but a standard element appears appropriate

Standard element used, but a new element should have been created

New elements created by filers should not include company-specific orperiod-specific information in their name.

New monetary elements created for amounts appearing on thebalance sheet or income statement must have a debit or creditbalance attribute.

Decide whether to tag an element with a positive or negative value

based on the elements standard definition and balance attribute, e.g.,debit vs. credit

Negate the label (reverse the sign) only to change whether an amountis rendered within brackets

Results to date


59/63

Rendering XBRL data Filers should be aware that there is no requirement that

the rendered files appear identical to the HTML/ASCII filing

. . . In addition, filers should not deviate from the guidance

in the rule release and EFM (Edgar Filer Manual) (e.g.,

change, delete, or summarize information in the

Interactive Data File) solely in an attempt to correct

rendering issues.

-- U.S. Securities and Exchange Commission

Results to date


60/63

Read the Preparers Guide Review the Tools/Service Matrix

Start talking to service providers

Attend an XBRL US training class

- Next Filer Training Workshop to be held in New

York City March 2010

Questions & Next Steps


61/63


62/63

www.xbrl.us Software and Services Comparison Matrix

http://xbrl.us/Learn/Pages/ToolsAndServices.aspx

Taxonomy http://xbrl.us/taxonomies/Pages/US-GAAP2009.aspx

Case studies http://xbrl.us/Learn/Pages/CaseStudies.aspx

Newsletter signup http://xbrl.us/News/pages/newsletter.aspx

SECs XBRL information portal: http://xbrl.sec.gov NEW!

View XBRL-formatted financial statements

http://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtml

SECs XBRL Submission Previewer https://datapreview.sec.gov/previewer/

SECs Information for EDGAR Filers (EDGAR Filer Manual)


Staff Observations from Review of Interactive Data Financial Statements

http://www.sec.gov/spotlight/xbrl/staff-review-observations.shtml

Resources
http://www.xbrl.us/http://xbrl.us/Learn/Pages/ToolsAndServices.aspxhttp://xbrl.us/taxonomies/Pages/US-GAAP2009.aspxhttp://xbrl.us/Learn/Pages/CaseStudies.aspxhttp://xbrl.us/News/pages/newsletter.aspxhttp://xbrl.sec.gov/http://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttps://datapreview.sec.gov/previewer/http://www.sec.gov/info/edgar.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/spotlight/xbrl/staff-review-observations.shtmlhttp://www.sec.gov/info/edgar.shtmlhttps://datapreview.sec.gov/previewer/http://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://www.sec.gov/spotlight/xbrl/filings-and-feeds.shtmlhttp://xbrl.sec.gov/http://xbrl.sec.gov/http://xbrl.us/News/pages/newsletter.aspxhttp://xbrl.us/Learn/Pages/CaseStudies.aspxhttp://xbrl.us/taxonomies/Pages/US-GAAP2009.aspxhttp://xbrl.us/taxonomies/Pages/US-GAAP2009.aspxhttp://xbrl.us/taxonomies/Pages/US-GAAP2009.aspxhttp://xbrl.us/Learn/Pages/ToolsAndServices.aspxhttp://www.xbrl.us/


63/63

Download handouts of this presentation by

clicking the document icon at top right of your

screen.

A replay of this presentation will be availableshortly, you will be notified by e-mail

Thank you for participating

Questions?

xbrl-us dec2009 webcast slides

Documents