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XBRL - Interactive Data Welcome to the Future
XBRL - Interactive Data
Welcome to the Future
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What is XBRL?XBRL - Interactive Data
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What does XBRL stand for? X is for
which means Adaptable B is for R is for L is for
XBRL - Interactive Data
eXtensible
BusinessReportingLanguage
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XBRL is a developing world-wide standard for
exchanging accounting and business data.
XBRL - Interactive Data
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History 101
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History 101
Giovanni di' Medici
15th Century
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Luca Pacioli in Venice, Italy (Circa 1495)
History 101
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April 1998
Charles Hoffman CPAFrom Knight, Vale and Gregory in Tacoma, Washington
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Financial data could be transferred or downloaded without rekeying.
Data could be exported into Excel or other programs intact.
No errors from Rekeying or Cut-and-Paste transfers.
Source and other information of the data could be included in transferred data.
Charlie’s Idea
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The first prototype is unveiled Entitled: XFRML – eXtensible Financial Reporting Markup Language.
American Institute of
Certified Public
Accountants
October 1999 High -Tech Task Force presents the First Prototype of true XBRL
January 1999
April 2000
AICPA and the soon to be “XBRL International” officially unveiled the first XBRL at press conference in New York City.
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1st XBRL International Conference in London. ◦ Representatives from 10 countries attend the first meeting.
◦ The International Accounting Standards Board has released a draft of an IAS taxonomy for review.
◦ Morgan Stanley announces that it has tagged its financials, sent information to the SEC in XBRL format and posted them to its web site.
◦ XBRL now has 85 members. FDIC joins XBRL.
February 2001
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◦ Security and Exchange Commission institutes a voluntary program to encourage companies to file financial reports using XBRL.
February 2005
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◦ In 2006 the SEC revamped EDGAR (SEC reporting system) to support XBRL at the cost of $54 million
◦ May of 2008 the SEC requires, as of December 15, 2008 "large accelerated filers," to file their reports in XBRL.
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“Use the same ‘Markup Language’ that Internet Web Pages use.
eXtensable Markup Language (XML)”
What is a Markup Language
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A markup language is a system for annotating text in a way which is distinguishable from that text.
Markup is typically omitted from the version of the text which is displayed for end-user consumption.
What is a Markup Language
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Editor Markup
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Legislative Markup
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XML (Extensible Markup Language)
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XBRL is a advanced version of XML
A type of Markup Language
XML (Extensible Markup Language)
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Instance Document◦ “Just the Facts”
Concept Value Context Currency
XBRL’s Main Components
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Taxonomy◦ “Dictionary of Concepts”
Concept Resources Relationships
XBRL’s Main Components
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Main Entry: tax·on·o·my Pronunciation: \tak-'sä-na-me\Function: noun
◦ 1 : the study of the general principles of scientific classification : systematics
◦ 2 : classification; especially : orderly classification of plants and animals according to their presumed natural relationships.
Taxonomy
http://www.merriam-webster.com/dictionary/taxonomies
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Taxonomy
Taxonomy for
Antennaria
monocepala
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Taxonomy
Taxonomy for Statement of
Financial Position (Balance Sheet)
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Taxonomy
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Taxonomy
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Taxonomy
Other information
Concept
Accounting
Authority
Language
Calculated or Account Number
Presentation
Cash Equivalents(Concept)
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Instance Document
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Instance Document
9,151,953
Date – as of 01/31/2009
Currency - $
Cash Equivalents(Concept)
Rounding (000)
Company Name
Budget /Audited
XBRL TermsTo exchange information using XBRL you need
both an instance document & taxonomy
Taxonomy◦ “Dictionary of Concepts”
Concept Resources Relationships
Instance Document◦ “Just the Facts”
Concept Value Context Currency
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In 2007 AGA decided to start a research project using XBRL◦ Focus on Public Sector◦ Study benefits of XBRL◦ Use the Comprehensive Annual Financial Report
(CAFR)◦ Oregon
The Oregon Project
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“Despite it potential for success and ongoing expansion in the private sector, application of XBRL in nearly any part of the public sector, … is little understood and applied.”
XBRL and Public Sector Financial Reporting Report No. 16
XBRL and the Public Sector
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The Plan:◦ 90 days to complete
◦ Focus on only two CAFR statements Statement of Net Assets
Tag 96 elements Statement of Activities
Tag 60 elements
XBRL and the Public Sector
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The Results◦ Produced the two statements◦ Took longer than expected◦ Cost more than expected
The Lessons◦ A GASB based taxonomy needs to be created.◦ Require cooperation with all States
XBRL and the Public Sector
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Unable to make further progress due to:
◦ Budget Cuts Due to the recession.
◦ Lack of the Development of a national taxonomy (integrating GASB into the GAAP).
◦ Lack of Resources due to new Federal and State initiatives.
Current Oregon Status
XBRL in Grant Management
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Grants are a major conduit the federal government provides funds to the states and others.
Grant Management is becoming more involved and complex with the grantor (the state) given greater responsibly of oversight.
XBRL in Grant Management
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This AGA research paper focuses on the current state of grant management
including the impact that XBRL can have on grant management.
XBRL in Grant Management
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The Grant has two major parts
The Front End.◦ Not an issue
The Back End◦ Post Award◦ Close Out
XBRL in Grant Management
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◦ Post Award Payment Processing Agency Monitoring Grantee Reporting
◦ Close Out Prepare Final Reports Financial Reconciliation Other
XBRL in Grant Management
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PL 106-107 Federal Financial Assistance Management Improvement Act of 1999
Proposed standard data elements for Federal agency use
Sunset November 2007
XBRL in Grant Management
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PL 106-107 required Development of a common application and reporting
system.
XBRL in Grant Management
Failed
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Reason for failure◦ Lack of definitions and formats.◦ No standardized terms
Grantees must track and report differently. Different agencies use terms for the same thing.
◦ Grant-making agencies using different reporting and payments systems.
XBRL in Grant Management
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Since June of 2009, public companies have submitted more than 1,400 financial filings
containing more than 5,000 problems related to the use of the U.S. GAAP
Taxonomy.
“Avoiding Common Errors in XBRL Creation,” XBRL U.S.http://xbrl.us/research/documents/AvoidingErrorsWhitePaper.pdf
Errors & Consistency
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Soon after the release of the report XBRL-US launched its XBRL Consistency Suite. A website that contains tools to indentify
errors and inconsistencies.
http://xbrl.us/research/pages/Csuite.aspx
Errors & Consistency
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The Danish registration authority receive and publish 140,000 class B annual reports each year.
The Plan: Year 2007 a full-scale XBRL solution for the Danish class B annual reports.
In 2008 they received 4 reports!! As of June 2009 they had received 216
reports.
The Danish Experience
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The concept of XBRL is easy i.e., transfer of data.
The application is complex. Software is the key We (accountants) must be ready to learn
about XBRL and work with the experts in the implementation.
Lessons
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Summary
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Each piece of business information has detailed descriptive and contextual information wrapped around it, so that the data becomes machine-readable and can be automatically processed and analyzed.
A financial or business report created once can be used to create many documents in different formats--HTML, ASCII text, Microsoft Word or Excel—with no loss of accuracy or integrity.
Summary
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XBRL enhances the ability to compare information from one organization or entity to another, because XBRL lays out a common set of definitions by which all organizations tag their data.
XBRL’s flexibility allows for unique reporting situations.
Summary
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XBRL is not an accounting standard and will not change what is reported, only how it’s reported.
The XML tagging means that the information in a business report is computer-readable and can be more easily extracted, searched and analyzed by users of that information.http://xbrl.us/101/Pages/FactSheet.aspx
Summary
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XBRL is a form of “Markup Language” that internet web pages currently.
XBRL is a system that allows financial data to be “tag” with specific information about that number.
A number can be tag with information such as calendar year, depreciation Expense, currency.
Summary
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XBRL doesn’t change the accounting standards or methods used for financial and business reporting, but it puts reported information into an instantly reusable computer- readable format.
Computer applications will automatically find comprehensive, granular data the instant it is posted online and flow it into analytical models for deep, automated analysis. XBRL is predicted to have a profound impact on any person or organization that creates or uses business information.
Journal of Accountancy Oct 2008
XBRL
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Impact of IFRS on transition.
XBRL would provide a wealth of benefits to the regulatory community.
Current no state or federal agency appears to be pursuing at least the foundation of XBRL.
XBRL
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Internet Resources:◦ www.XBRL.org◦ http://xbrl.us◦ http://en.wikipedia.org/wiki/XBRL◦ http://tryxbrl.com/
XBRL for Dummies
Summary
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Comments or Questions
