IFRS XBRL Adoption: Crossing the Filing Finish Line January 24, … · 2018-01-24 · XBRL Workflow...

transcript

IFRS XBRL Adoption: Crossing the Filing Finish Line

January 24, 2018

Presenter

Kim Gresham

Professional Services Manager

Workiva

How Do You Envision Your Initial Adoption of XBRL?

File document + XBRL

Create XBRL Document creation Final

document

What Are Some Issues You Could Encounter?

• Quality

• Compliance

Reporting Calendar

12/15 12/31 1/19 2/16 2/26 3/1 3/2

Live file with SEC

Roll forward document

7 Steps to Success

1. Plan your reporting calendar, including new XBRL milestones

2. Seek knowledge about XBRL and the IFRS Taxonomy

3. Identify resources responsible for XBRL

4. Start tagging and review processes early and in small batches

5. Focus review on completeness, accuracy, and proper tagging

6. Keep XBRL up to date throughout the document drafting process

7. Establish a relationship with a trusted partner

Plan Your Reporting Calendar

XBRL Workflow

1. Review disclosure taxonomy

2. Map and tag

3. Set XBRL fact properties (accuracy, unit, reversal, data format, XBRL footnote)

4. Define calculations

5. Review XBRL outline (structure, order, indentation, preferred label, label role)

6. Review consistency (date, reversal, accuracy, unit)

7. Validate XBRL

8. Review all outputs

Add XBRL Milestones to Reporting Calendar

12/15 12/31 1/19 2/16 2/26 3/1 3/2

Live file with SEC

Roll forward document

1/15 2/9 2/22 2/28

Seek Knowledge About XBRL + IFRS

XBRL Tagging Requirements

• Office of Structured Disclosure (OSD) · Within SEC Division of Economic and Risk Analysis (DERA)

• EDGAR Filer Manual (EFM), Volume II, Chapter 6 contains the XBRL rules and guidance

IFRS Taxonomy

International Accounting Standards Board (IASB)

• Maintains and updates the IFRS Taxonomy

• Using the IFRS Taxonomy: A preparer's guide

Using the IFRS Taxonomy: A Preparer's Guide

XBRL + IFRS Taxonomy

• How does the document tie back to disclosure requirements?

• How does the taxonomy tie back to those disclosure requirements?

Identify Resources for XBRL

• Who is responsible for creating XBRL?

• Who is responsible for reviewing XBRL?

Start Tagging Process

XBRL Tagging Requirements

Document and Entity Information (DEI)

Block Tagging Notes to financial statements

Notes (Level 1) Policies (Level 2) Tables (Level 3)

Detail Tagging Financial statements Details (Level 1)

Notes to financial statements Details (Level 4)

*Financial statement schedules require Level 1 block tag and Level 4 detail tag only

Document and Entity Information (DEI)

XBRL cover page

Block Tagging

Snapshots of • Entire notes • Company policies • (Set of) tables

Notes (Level 1) Disclosure of property, plant and equipment [Text Block] 2017 Q4 YTD

Tables (Level 3) Disclosure of detailed information about property, plant and equipment [Text Block] 2017 Q4 YTD

Detail Tagging

Each numeric value, including numbers stated in words Details (Level 1) Gross profit 2017 Q4 YTD

Details (Level 4) Property, plant and equipment

Classes of property, plant and equipment [Axis]

Buildings [Member] 2017 Q4

Break Tagging and Review into Batches

• Group information that has overlapping disclosures

· Increased data quality and efficiency

Break Tagging and Review Into Batches Table of Contents

Financial Statements

Consolidated Statements of Operations and Comprehensive Profit (Loss)

Consolidated Statement of Financial Position

Consolidated Statements of Cash Flows

Consolidated Statement of Changes in Shareholders' Equity

Notes to the Financial Statements

Basis of Presentation

Summary of Accounting Policies

Earnings Per Share

Financial Instruments

Fair Value Measurements

Acquisitions

Intangible Assets

Inventories

Revenue

Share-based Payment Arrangements

Income Taxes

Operations by Segment and Geographic Area

Break Tagging and Review Into Batches Table of Contents

Financial Statements

Consolidated Statements of Operations and Comprehensive Profit (Loss)

Consolidated Statement of Financial Position

Consolidated Statements of Cash Flows

Consolidated Statement of Changes in Shareholders' Equity

Notes to the Financial Statements

Basis of Presentation

Summary of Accounting Policies

Earnings Per Share

Financial Instruments

Fair Value Measurements

Acquisitions

Intangible Assets

Inventories

Revenue

Share-based Payment Arrangements

Income Taxes

Operations by Segment and Geographic Area

Review for Completeness, Accuracy, and Proper Tagging

Completeness

Do these numbers require tagging?

• The company has two reportable segments

• There was no goodwill impairment for the fiscal year ended

• Current assets are 12 months or less

• 2% milk

Completeness

Do these numbers require tagging?

• The Company has two reportable segments

• There was no goodwill impairment for the fiscal year ended...

• Current assets are 12 months or less

• 2% milk

Accuracy and Proper Tagging

• Does the element match the disclosure requirement?

• Are the fact properties consistent with the document?

Element Selection

• Disclosure requirements driven

· Match the disclosure requirements, not the words describing the disclosure

• Consistent with printed financial statements

· Apply the same material judgments for element selection

· Disregard immaterial components

Disclosure Requirements Driven Element Selection

Base case — Share-based payments disclosure

Required disclosure under IFRS 2

Number of stock options

Outstanding, January 1 3,292,990

Granted 800,000

Exercised (1,000,000 )

Forfeited (575,000 )

Outstanding, December 31 2,517,990

Disclosures 45 To give effect to the principle in paragraph 44, the entity shall disclose at least the following: (b) the number and weighted average exercise prices of share options for each of the following groups of options:

(i) outstanding at the beginning of the period;

(ii) granted during the period;

(iii) forfeited during the period;

(iv) exercised during the period;

(v) expired during the period;

(vi) outstanding at the end of the period; and

(vii) exercisable at the end of the period.

Base case — IFRS 2

Number of stock options Underlying Requirements

Outstanding, January 1 3,292,990 IFRS 2, 45 (b) (i) outstanding at the beginning of the period

Granted 800,000 IFRS 2, 45 (b) (ii) granted during the period

Exercised (1,000,000 ) IFRS 2, 45 (b) (iv) exercised during the period

Forfeited (575,000 ) IFRS 2, 45 (b) (iii) forfeited during the period

Outstanding, December 31 2,517,990 IFRS 2, 45 (b) (vi) outstanding at the end of the period

Corresponding section under IFRS Taxonomy

Number of stock options Underlying Concepts

Outstanding, January 1 3,292,990 Number of share options outstanding in share-based payment arrangement

Granted 800,000 Number of share options granted in share-based payment arrangement

Exercised (1,000,000 ) Number of share options exercised in share-based payment arrangement

Forfeited (575,000 ) Number of share options forfeited in share-based payment arrangement

Outstanding, December 31 2,517,990 Number of share options outstanding in share-based payment arrangement

Use standard concepts that tie back to the disclosure requirements where possible. The concept should include all material amounts disclosed, and should not exclude any material amounts being reported.

Fact Properties

• Dates

• Units

• Accuracy

• Fact value

Element/concept ifrs-full_BasicEarningsLossPerShare

Period 01/01/2017 - 12/31/2017

Unit CAD per share

Accuracy/decimal 2 (one hundredth)

Fact 1.50

Fact Properties — Dates

• Is the date appropriate for the disclosure? • Is the date applied consistent with the document disclosure?

Weighted average exercise

price (C$/option) Dates

Outstanding, January 1 3,292,990 9 12/31/2016

Granted 800,000 7 01/01/2017 - 12/31/2017

Exercised (1,000,000 ) (7 ) 01/01/2017 - 12/31/2017

Forfeited (575,000 ) (9 ) 01/01/2017 - 12/31/2017

Outstanding, December 31 2,517,990 9 12/31/2017

Fact Properties — Units

• Is the unit consistent with the document disclosure? • Is it appropriate based on the concept item type?

Weighted average exercise price

(C$/option) Units

Outstanding, January 1 3,292,990 8.94 USD

Granted 800,000 7.17 CAD

Exercised (1,000,000 ) (7.26 ) CAD

Forfeited (575,000 ) (8.75 ) CAD

Outstanding, December 31 2,517,990 8.52 USD

Fact Properties — Accuracy

• To what decimal place is the rounding of the fact value accurate?

(C$/option) Accuracy

Outstanding, January 1 3,292,990 8.94 2

Granted 800,000 7.17 2

Exercised (1,000,000 ) (7.26 ) 2

Forfeited (575,000 ) (8.75 ) 2

Outstanding, December 31 2,517,990 8.52 2

Fact Properties — Fact Value

• Should the XBRL fact value be negative or positive?

(C$/option) Fact Value

Outstanding, January 1 3,292,990 8.94 3,292,990

Granted 800,000 7.17 800,000

Exercised (1,000,000 ) (7.26 ) 1,000,000

Forfeited (575,000 ) (8.75 ) 575,000

Outstanding, December 31 2,517,990 8.52 2,517,990

Update XBRL Throughout the Drafting Process

Document Changes That Impact XBRL

• Changes in line item descriptions

• Removing historical or outdated disclosures

• New disclosures from refinancing debt, acquisitions, or subsequent events

Some things may change, but if you postpone too long, you may run out of time.

Establish a Relationship with a Trusted Partner

• Outsource what can’t be done internally · Seek out resources when you don't have the skill set or bandwidth to perform

• Leverage cloud technology · Accessibility, innovation, reliability, security, and affordability

• Reduce manual efforts · Increase efficiency and reduce time spent on non-value add activities.

• Utilize technology that supports real-time collaboration · Effectively communicate, share information and data with stakeholders

• Improve data accuracy with a single source of truth · A single source of the truth will reduce errors and provide visibility into changes

Questions? webinars@workiva.com

IFRS XBRL Adoption: Crossing the Filing Finish Line January 24, … · 2018-01-24 · XBRL Workflow...

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