The contents of this presentation are confidential. Copyright © 2018 Workiva.
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
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
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
2017
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
Disclosure Requirements Driven Element Selection
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
Required disclosure under IFRS 2
Disclosure Requirements Driven Element Selection
Base case — Share-based payments disclosure
Required disclosure under IFRS 2
2017
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
Disclosure Requirements Driven Element Selection
Base case — Share-based payments disclosure
Corresponding section under IFRS Taxonomy
Disclosure Requirements Driven Element Selection
Base case — Share-based payments disclosure
Required disclosure under IFRS 2
2017
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?
2017
Number of stock options
Weighted average exercise
price (C$/option) Dates
Outstanding, January 1 3,292,990 9 12/31/2016
Granted 800,000 7 01/01/2017 - 12/31/2017
Exercised (1,000,000 ) (7 ) 01/01/2017 - 12/31/2017
Forfeited (575,000 ) (9 ) 01/01/2017 - 12/31/2017
Outstanding, December 31 2,517,990 9 12/31/2017
Fact Properties — Units
• Is the unit consistent with the document disclosure? • Is it appropriate based on the concept item type?
2017
Number of stock options
Weighted average exercise price
(C$/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?
2017
Number of stock options
Weighted average exercise price
(C$/option) Accuracy
Outstanding, January 1 3,292,990 8.94 2
Granted 800,000 7.17 2
Exercised (1,000,000 ) (7.26 ) 2
Forfeited (575,000 ) (8.75 ) 2
Outstanding, December 31 2,517,990 8.52 2
Fact Properties — Fact Value
• Should the XBRL fact value be negative or positive?
2017
Number of stock options
Weighted average exercise price
(C$/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
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
The contents of this presentation are confidential. Copyright © 2018 Workiva.
Questions? [email protected]