Transcript XBRL - Introduction and Overview

XBRL: Introduction & Overview
Grant Boyd, CA
[email protected]
Technical Manager – XBRL, AICPA
Session Topics
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Why XBRL
XML / XBRL Overview
Global Adoption
Public Sector
2
The Business Reporting Supply Chain
Transaction
Business
Processes Standards
Operations
XBRL
Participants
XBRL-GL
Internal
Financial
Reporting
The
Journal
Standard
XBRL
Financial Statements
External
Financial
Reporting
XBRL
Investment,
Lending, and
Regulation
XBRL
Financial
Publishers
and Data
Aggregators
Collaboration is
KEY!!!
Companies
Trading
Partners
Management
Accountants
Auditors
Investors
Regulators
Software Vendors
3
Then …
XBRL began with the idea of a
single individual - Charlie
Hoffman, from a small CPA firm
in Tacoma, Washington …
… and 13 Sponsoring Companies
4
XBRL Membership Growth
Members
400
400
300
300
275
210
200
130
100
13
80
Time
2000
2001
2002
2003
2004
2005
2006
5
XBRL Jurisdictions
NO
SE
FI
NL
IAS
B
CA
LU
DE
DK
CZ
PL
RU
HU
SI
UK
AT
IR
US
BE
UA
TR
SP
PT
GR
FR
IT
CH
VZ
CN
LB
JP
KR
IN
MT
HK
AE
CO
SG
BR
Established
Jurisdictions
Provisional
Jurisdictions
ZA
AR
AU
NZ
in Construction &
in Project
6
XBRL Regulatory Adoption – Publicly
Announced
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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}
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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
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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)
7
This RFP contemplates
a significant, multi-year
project to update the
system's underlying
technology.
8
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.
9
Gartner – XML Hype Cycle, 2005
Why XBRL …
11
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
14
Democratizing Access to Financial Information
Percentage of Companies Receiving Coverage
NASDAQ (US)
NYSE (US)
NASDAQ (Non-US)
NYSE (Non-US)
76%
59%
55%
48%
44%
29%
16%
No Research
Coverage
29%
16%
8%
12%
8%
One Research Analyst
Includes all common stock on NASDAQ National Market and NYSE.
Source: Thomson Financial. December 2002.
More than One
Research Analyst
15
For example … helping banks
Without XBRL …
Average Time for Updating Financial Information—11 days
Value-added
90% timeAnalysis
spent onand
Mechanics
Decision-making?
10%
With XBRL …
Average Time for Updating Financial Information—1 days
Mechanics
More Time for Analysis
With XBRL?
=> Better Analysis => Less Risk
16
Better information leads to better management… better governance… better markets
XML / XBRL Overview …
18
Simple problem:
1,200,000 results in a typical search
(e.g. IBM Fixed Assets)
19
Content—without Context
Searching for the word “Mercury” on the Web can provide a
wide variety of results—too many—such as:
Hg
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“Content in Context” (Industry-specific)
Auto Industry
<CAR-MODEL>
Chemical
Industry
<SYMBOL>
Publishing or
Mythology
<GOD>
Music Industry
<RECORDLABEL>
Aerospace
Industry
<PROGRAM>
Astronomy
<PLANET>
21
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>
Ordinary
information
Metadata:
Information about information
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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.
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Barcode has done for product distribution …
Efficiency
Savings
Quality
26
… what XBRL is doing for business reporting
27
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
28
XBRL – More Than Just Definitions
Standardization
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Comptant
et
Comptant
現金及び現金等価物
Гроші
Деньги
иGeld
їх
их
еквіваленти
эквиваленты
Kas&та
en
Geldmiddelen
现金与现金等价物
Geld
&Equivalents
nahe Mittel
Cash
Cash
Equivalents
References
Label
GAAP I.2.(a)
Instructions
Ad Hoc disclosures
cashCashEquivalentsAn
dShortTermInvestments
XBRL
XML
Item
Calculation
Formulas
Cash = Currency +
Deposits
Cash ≥ 0
Contexts
Validation
US $
FY2004
Budgeted
29
Instance Document …
30
Company Financial Statement
XBRL Taxonomy
Created by XBRL Consortium
XBRL Document
XBRL
Creation
TAGGING
Created by Preparer
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Two Critical Pieces for Adoption
 Taxonomies
 Language
 Significant upfront investment
 Airport runway
 Software
 Tools
 Needs critical mass
 Fax machine
Progress …
2002-2005
Growing monthly
32
XBRL Taxonomy Growth
Public Taxonomies
February, 2005
US GAAP C&I
This does not include any
US GAAP Bank
private taxonomies such as
US GAAP Ins
those prepared for statutory
SEC Certification
purposes.
Mgmt Report
Accountants Report
MD&A
Nov, 2005
June, 2004
General Ledger
IFRS GAAP
NZ GAAP
July, 2005
UK GAAP
China Framework
January, 2004
IFRS GAAP
UK
GAAP
2.0
June, 2001
US GAAP Invest Mgt
Canada
GAAP
General Ledger
Time
2000
2001
2002
2003
2004
2005
2006
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XBRL Tools Growth
(Representative Listing)
Tools
FDIC Vendors
DBI Financial Systems, Inc.
FinArch
FRS Global Financial Reporting & Analytics
IDOM, Inc.
Information Technology, Inc.
Fidelity Regulatory Solutions
Jack Henry & Associates Inc.
Semansys Integrator
Core Filings
Semansys Analyzer
Microsoft Business Solutions
Snappy Reports
FR Solutions J2R Batavia Data Driver Carthesis
Semansys
Metapraxis Adobe
Deployment Manager
DecisionSoft True North
UBMatrix Automator Pro High Ridge Technologies
IBS Open Digital Reporting
Ipedo EII
Software AG
Covarity
Hyperion
Fujitsu XWand
Fujitsu Oracle
XBI Software
IBMatrix
SAP UBMatrix Converter Rivet Software
XBRL Solutions
UBMatrix Tool Kit SavaNet DynAccSys Xabra
Caseware Semansys Composer Hitachi CBRP
Hitachi Ximba Allocation Solutions
Navision
Creative Solutions
Hitachi XiRute
Edgar-Online IMetrix
Time
2000
2001
2002
2003
2004
2005
2006
34
XBRL Adoption Accelerates …
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Tax Authorities
CA
NO
UK
NL
IE
DE
JP
CN
Tax XML Technical Committee
recommends use of XBRL
(Oasis-OECD)
29 Tax authorities
AU
NZ
Pilot
Committed
36
Financial Banking Regulators
SE
UK
DK
BE EU CEBS
FR
NL
Portugal
US
ES
DE
LuX
CN
JP
KR
SG
AU
ZA
Pilot
NZ
Committed
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Exchanges & Equity Regulators
OBX
CSE
LSE
TSX
EuroNext
SEC
KOSDAQ
Deutsche
Börse
Lux
Shanghai
SWX
Shenzen
Tokyo
Kore
a
Taipei
Singapore
Sao Paulo
Johannesburg
ASX
NZSE
Eval
Pilot
Live
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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
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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.
XBRL in Fall 2005
Closed Forms
Financial
Statements
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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
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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 ofProjected
reports andsavings
exchangefor
of financial data
easier.
350
Netherlands
million euro
 Focuses on three businesses?
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
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Solution development – all about me
Regulator
Regulator
Regulator
Regulator
Regulator
Regulator
Company
Regulator
Regulator
Regulator
Regulator
Problem
=
Exchange
of
Regulator
Regulator
Regulator
Regulator
Company Company Company
Regulator
Regulator
Regulator
Company Company Company
data
betweenRegulator
regulatedRegulator Regulator
Regulator
Regulator
Company Company Company
Regulator
Regulator
Regulator
Regulator
Company Company Company
Companyentity
and regulator
Regulator
Regulator
Regulator
Regulator
Regulator
Regulator
Regulator
Regulator
Company
Regulator
Regulator
Regulator
RegulatorRegulator
Company Company Company
Regulator
Regulator
Regulator
XML
RegulatorRegulator
Company Company Company
XML
Regulator
Regulator
Regulator
Schema
RegulatorRegulator
Company Company Company
Regulator
Regulator
Schemas
Company Regulator Proprietary
Regulator
Regulator
Company Company
Regulator
CompanyCompany
Regulator
solution
for
Regulator
Regulator
Regulator
Company
Regulator
RegulatorRegulatorRegulator
Regulator
Regulator
Regulator Looks
Company
good
to
the
regulator
Company
Regulator Regulator Regulator
Regulator
Company
Company Company Company Company
Regulator Regulator Regulator
Regulator
Company Company Company Company
Regulator Regulator Regulator
Regulator
Company Company
Company solution
Regulator Regulator
Proprietary
solutions looks
Regulator=
Regulator
Company Company Company
Company
Regulator Regulator
Regulator
Company
XML
Company
Regulator
Regulator
different to the
companies
Use XML
Schema
to
Company
Company
SchemaRegulator Regulator
Regulator
Company
RegulatorRegulator
Regulator
Regulator
Company Company
Company
Company
and
is aCompany
costly and
complex
Regulator
Regulator
define terms for exchange.
Company
Company
Regulator
Regulator
Company Company Company
Regulator
Company Company
model Regulator
Company builds taxonomy using
a (XML Schema) proprietary platform.
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Solution development - Collaboration
yields benefits to all participants
Publicly available
3rd Party
Interpretative
Guidance
Reporting
Sources
Stds (FASB,
IFRS)
Regulations
Interpretative
Guidance
Audit
Guidance
Instructions
Internal
Reporting
Instructions
XBRL
Company
Regulator
Validation
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http://www.sec.gov/spotlight/xbrl.htm
Preparer Benefits?
Consumer Benefits?
SEC Benefits?
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
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Transforming Business Reporting
The global XML standard for
business and financial reporting
XBRL is happening!!!
XBRL: It's Unstoppable
Grant Boyd, CA
Technical Manager – XBRL, AICPA