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XBRL: Introduction & Overview Grant Boyd, CA [email protected] Technical Manager – XBRL, AICPA.

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XBRL: Introduction & Overview Grant Boyd, CA [email protected] Technical Manager – XBRL, AICPA
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Page 1: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

XBRL: Introduction & Overview

Grant Boyd, CA

[email protected]

Technical Manager – XBRL, AICPA

Page 2: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

2

Why XBRL XML / XBRL Overview Global Adoption Public Sector

Session Topics

Page 3: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

3

The Business Reporting Supply Chain

ExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

Investment,Lending, andRegulation

Processes

Participants

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

Software VendorsSoftware Vendors

ManagementAccountants

Companies

XBRL XBRLXBRL

XBRLFinancial StatementsXBRL-GL

TheJournal

Standard

Transaction Standards

Collaboration is KEY!!!

Page 4: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

4

Then …

XBRL began with the idea of a single individual - Charlie

Hoffman, from a small CPA firm in Tacoma, Washington …

… and 13 Sponsoring Companies

Page 5: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

5

XBRL Membership Growth

2000 2001

2002 2003 2004 2005 2006Time

Members

100

200

300

400

1380

130

210

275

300

400

Page 6: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XBRL Jurisdictions

UKCA

SPUS

AU

NZ

IR

JPKR

BE

VZ

CO

BR

AR

PT

RU

SG

HK

NOSE

PL

FI

IT

CN

IN

LB

CZ

UA

LUIASB

AE

NL

TR

GR

MTCH

FR

SI

HU

AT

Established Jurisdictions

Provisional Jurisdictions

in Construction & in Project

DE

DK

ZA

Page 7: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XBRL Regulatory Adoption – Publicly Announced Australian Tax Office Banco de España Bank of Japan Bundesbank Committee of European Banking

Supervisors (CEBS) Chinese Securities Regulation

Commission (CSRC) {sponsoring Shenzen and Shanghai exchanges}

Danish Commerce & Companies Agency

Dutch Tax Authority Dutch Water Authority Eurostat EU Commission – XBRL in Europe Financial Service Agency of Japan The Irish Revenue Spanish Stock Exchange

Commission – 3000 companies

KOSDAQ – Korea National Tax Agency of Japan New Zealand Exchange Patent and Registration Office

(PRV – Sweden) U.S. Securities & Exchange

Commission Shanghai Stock Exchange 800+

companies Shenzhen Exchange Tokyo Stock Exchange UK Financial Services Authority UK Inland Revenue US Federal Financial Institutions

Examination Council (includes FDIC)

Page 8: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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This RFP contemplates a significant, multi-year project to update the system's underlying technology.

Page 9: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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During the next 12 months, the SEC will move beyond the EDGAR concept of electronic filing of paper-based forms, to an interactive data concept in which investors can have instant access to data that's ready to use in myriad software applications on their desktops

The SEC has already begun to move toward the use of interactive data in its disclosure program. Since February 2005, the Commission has been testing the use of data tagging in periodic and investment company reports, using a format known as Extensible Business Reporting Language (XBRL). Filing financial data in XBRL is currently voluntary, and a number of registrants have begun to use the program.

Page 10: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

Gartner – XML Hype Cycle, 2005

Page 11: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

11

Why XBRL …

Page 12: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.
Page 13: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.
Page 14: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Consolidated Profit and Loss Account for the year ended June 30, 2003

Blah blah blah

Blah blah blah blah

Blah blah blah

Blah blah blah blah blah

Profit 925 448

Blah blah blah

Earnings per share 3.6 11.0

Page 15: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Democratizing Access to Financial InformationPercentage of Companies Receiving Coverage

29%

16%

55%

16%8%

59%

12%

29%

44%

76%

8%

48%

No ResearchCoverage

One Research Analyst More than OneResearch Analyst

NASDAQ (US)NYSE (US)

NASDAQ (Non-US)NYSE (Non-US)

Includes all common stock on NASDAQ National Market and NYSE.Source: Thomson Financial. December 2002.

Page 16: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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With XBRL?Mechanics More Time for Analysis => Better Analysis => Less Risk

Value-added Analysis and Decision-making? 10%

Average Time for Updating Financial Information—11 days

90% time spent on Mechanics

Average Time for Updating Financial Information—1 days

Without XBRL …

With XBRL …

For example … helping banks

Page 17: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

Better information leads to better management… better governance… better markets

Page 18: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XML / XBRL Overview …

Page 19: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Simple problem:1,200,000 results in a typical search

(e.g. IBM Fixed Assets)

Page 20: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Searching for the word “Mercury” on the Web can provide a wide variety of results—too many—such as:

Hg

Content—without Context

Page 21: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Chemical Industry

<SYMBOL>

Auto Industry <CAR-MODEL>

Publishing or Mythology

<GOD>

Music Industry <RECORD-LABEL>

Aerospace Industry <PROGRAM>

Astronomy <PLANET>

“Content in Context” (Industry-specific)

Page 22: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XML Markup: What Does it Look Like?

Gerald Bostock

8080 Floppy Disk Drive

San Sushi, CA 94078

+1 (650) 555-1424

Birthdate: 19 October 58

<name>Gerald Bostock</name>

<address>

<street>8080 Floppy Disk Drive</street>

<city>San Sushi</city>

<state>California</state>

<country>United States of America</country>

<postcode>94078</postcode>

</address>

<telephone>6505551424</telephone>

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

Metadata:Information about

information

Metadata:Information about

information

Ordinary informationOrdinary

information

Page 23: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XBRL is a pretty simple concept… Tag individual concepts for electronic

dissemination. Most concepts that are disclosed are defined in a

common framework – like IFRS Those that aren’t are the unique aspects of a

particular company’s operations. They are interesting because they are different to what their peers report.

Where a concept belongs to a common framework, use that.

Where a concept only belongs to a single organization, define it, and disclose that definition, together with the fact.

Page 24: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Page 25: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Page 26: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Savings

Quality

Efficiency

Barcode has done for product distribution …

Page 27: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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… what XBRL is doing for business reporting

Page 28: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XBRL Basics XBRL is XML It is Extensibile There is an XBRL specification – tells you how to

use XBRL Hinges on taxonomies – the dictionary of terms

for business reporting – which includes financial statements

Page 29: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

29

Validation

Standardization

XBRL – More Than Just Definitions

CalculationCash = Currency +

Deposits

CalculationCash = Currency +

DepositsFormulas

Cash ≥ 0Formulas

Cash ≥ 0Contexts

US $FY2004

Budgeted

ContextsUS $

FY2004Budgeted

LabelcashCashEquivalentsAndShortTermInvestment

s

LabelcashCashEquivalentsAndShortTermInvestment

s

ReferencesGAAP I.2.(a)Instructions

Ad Hoc disclosures

ReferencesGAAP I.2.(a)Instructions

Ad Hoc disclosures

PresentationCash & Cash Equivalents

PresentationCash & Cash Equivalents

XBRLItem

XBRLItemXMLItemXMLItem

XBRLItem

XBRLItem

PresentationComptant et Comptant

Equivalents

PresentationComptant et Comptant

Equivalents

PresentationGeld & Geld nahe Mittel

PresentationGeld & Geld nahe Mittel

PresentationKas en Geldmiddelen

PresentationKas en Geldmiddelen

Presentation现金与现金等价物

Presentation现金与现金等价物

Presentation現金及び現金等価物

Presentation現金及び現金等価物

PresentationДеньги и их эквиваленты

PresentationДеньги и их эквиваленты

PresentationГроші та їх еквіваленти

PresentationГроші та їх еквіваленти

Page 30: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Instance Document …

Page 31: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XBRL TaxonomyCreated by XBRL Consortium

Consumed

Rendered

XB

RL

Cre

ati

on

XBRL DocumentCreated by Preparer

Company Financial Statement

TAGGING

Page 32: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Two Critical Pieces for Adoption Taxonomies

Language Significant upfront investment Airport runway

Software Tools Needs critical mass Fax machine

2002-2005 Growing monthly

Progress …

Page 33: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XBRL Taxonomy Growth

2000 2001

2002 2003 2004 2005 2006Time

Public Taxonomies

June, 2001General Ledger

January, 2004UK GAAP 2.0Canada GAAP

June, 2004IFRS GAAPNZ GAAPUK GAAP

February, 2005US GAAP C&IUS GAAP BankUS GAAP InsSEC CertificationMgmt ReportAccountants ReportMD&A

July, 2005China FrameworkIFRS GAAP US GAAP Invest Mgt

Nov, 2005General Ledger

This does not include any private taxonomies such asthose prepared for statutorypurposes.

Page 34: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XBRL Tools Growth(Representative Listing)

2000 2001

2002 2003 2004 2005 2006Time

Tools

Caseware

Creative Solutions

DynAccSys Xabra

Fujitsu XWand

J2R Batavia Data Driver

Hitachi CBRP

Metapraxis

Microsoft Business Solutions

Rivet Software

UBMatrix Automator ProDecisionSoft True North

Allocation SolutionsEdgar-Online IMetrix

Hitachi XimbaHitachi XiRute

IBS Open Digital ReportingIpedo EII

Oracle XBI Software

UBMatrix Tool KitUBMatrix Converter

Software AG Hyperion

Navision

XBRL SolutionsIBMatrix

FujitsuSAP

Snappy Reports

High Ridge Technologies

FR Solutions

Covarity

SavaNet

FDIC VendorsDBI Financial Systems, Inc.FinArchFRS Global Financial Reporting & AnalyticsIDOM, Inc.Information Technology, Inc.Fidelity Regulatory SolutionsJack Henry & Associates Inc.

Adobe

Core FilingsSemansys IntegratorSemansys Analyzer

Semansys Deployment Manager

Semansys Composer

Carthesis

Page 35: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XBRL Adoption Accelerates …

Page 36: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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CACA UKUK

IEIE

AUAU

NONO

JPJP

NZNZ

NLNL DEDE

CNCN

Tax Authorities

PilotPilot Committed

Committed

Tax XML Technical Committee recommends use of XBRL (Oasis-OECD)29 Tax authorities

Page 37: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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USUS

UKUK

JPJPESES

SESE

CNCN

ZAZA

AUAU

DEDEDKDK

Financial Banking Regulators

PilotPilot Committed

Committed

KRKR

SGSG

FRFR

NZNZ

NLNL

LuXLuXPortug

al

Portugal

BEBEEU CEBSEU CEBS

Page 38: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Exchanges & Equity Regulators

Sao PauloSao Paulo

NZSENZSEASXASXJohannesburgJohannesburg

ShenzenShenzen

EuroNextEuroNextKOSDAQKOSDAQ

TokyoTokyo

SingaporeSingapore

SWXSWXLuxLux

Pilot LiveEval

TSXTSX

OBXOBX

LSELSECSECSE

DeutscheBörse

DeutscheBörse

Taipei

SECSEC

Korea

Korea

ShanghaiShanghai

Page 39: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Different kinds of reporting

“Closed” Aggregate data Complex forms

with hundreds or thousands of concepts

Advanced validation

“Open” Aggregate data Financial

Statements Common base

disclosures Industry,

company and segmented additional disclosure

Page 40: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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More concrete… Closed form reporting for regulators in XBRL is now

absolutely normal. Numerous major implementations. Financial statement reporting in XBRL is still in its infancy,

in terms of number, but is rapidly getting acceptance at all levels, from all stakeholders.

Closed Forms

Financial Statements

XBRL in Fall 2005

Page 41: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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XBRL Regulatory Adoption – 40+ Projects Publicly Announced around the world

KEY PROJECTS Banco de España Dutch Ministry US Federal Financial Institutions

Examination Council (includes FDIC) Shanghai Stock Exchange SEC Voluntary Filing Program

Page 42: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Dutch Taxonomy Project Major eGovernment initiative The Ministry of Justice and the Ministry of Finance in

a joint effort intend to reduce the administrative burden of businesses by using XBRL to make the composing of reports and exchange of financial data easier.

Focuses on three important reporting chains: Reporting of taxes; for instance profits tax, wage taxes,

value added taxes (VAT) and Income taxes Reporting of annual accounts Reporting of economic statistics

Projected savings for Netherlands businesses?

350 million euro

Page 43: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Company Regulator

Problem = Exchange ofdata between regulated

entity and regulator

Regulator solution = Use XML Schema to

define terms for exchange.Regulator builds taxonomy using

a (XML Schema) proprietary platform.

XMLSchema

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

Company

Regulator

XMLSchema

CompanyCompany

CompanyCompany

CompanyCompany

Company

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

CompanyCompany

Proprietary solution for RegulatorLooks good to the regulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

Regulator

RegulatorXML

Schemas

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

Regulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

Regulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorRegulator

RegulatorCompany

Proprietary solutions looks different to the companies

and is a costly and complexmodel

Regulator

Solution development – all about me

Page 44: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

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Publicly available

Solution development - Collaborationyields benefits to all participants

Company RegulatorXBRL

Internal Reporting Instructions

3rd PartyInterpretative

Guidance

ReportingSources

RegulationsInterpretative

Guidance

Instructions

Stds (FASB,IFRS)

AuditGuidance

Validation

Page 45: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

http://www.sec.gov/spotlight/xbrl.htm

Preparer Benefits?

Consumer Benefits?

SEC Benefits?

Page 46: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

46

Public Sector Project Collaboration Example New Zealand Government taxonomy under

development 8 key agencies collaborating on development

(includes NZX, IRS, Statistics, E-gov, OAG, Audit Office, ACC, Treasury)

Compared standard forms required from business – common Information needs

Simplify reporting for preparers by producing 1 XBRL instance – feeding to multi regulators

Page 47: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

The global XML standard for business and financial reporting

Transforming Business Reporting

XBRL is happening!!!

Page 48: XBRL: Introduction & Overview Grant Boyd, CA gboyd@aicpa.org Technical Manager – XBRL, AICPA.

XBRL: It's Unstoppable

Grant Boyd, CA

Technical Manager – XBRL, AICPA


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