Transcript Document

XBRL In the Classroom
The Time is Now
Presented by Neal Hannon, Bryant College
What is the business problem ?
Is XBRL right for the classroom today ?
YES IF
XBRL will soon become a dominant method of handling business
reporting
Other areas of business are also moving to XML enabled
information. (HR, CRM, ERP, Insurance, etc.)
The crux of the problem for
business is to develop a
comprehensive system
that is
•
•
All inclusive and
Transparent to the user
The Case for XML..

XML - a computer markup language that is extensible
(flexible … can be added to)

XML is actually a bare-bones set of syntax rules to
markup any kind of text and data

XML provides the structure of the text or data

XML describes to humans & to computers what the data is
… not how to display it
XML has become the fastest growing technology for
information transportation and exchange the
world of computing has ever seen.
Business Integrator Magazine says that nearly nine
out of every ten enterprises claim that XML will be
and important technology for their IT strategies
over the next year
The Case for XBRL…
The purpose of XBRL is “to enhance the flow
of financial information through the creation of
a globally useful language in which to describe
financial facts and concepts.” David vun Kannon
XBRL is uniquely positioned to
Provide mobility and transportability
to financial and business facts.
Students in AIS, Advanced
Accounting,Auditing, Consolidations,
Mergers, Tax, Not-for-Profit will all be
affected by XBRL
The Case for XBRL…
Arthur Levitt, Former Chairman, SEC
I would like to see you take your
XBRL project a step further, providing
account classifications for companies in
Common industries. In short, I challenge
you to turn all of this data into
meaningful information for investors
The Case for XBRL…
Business Week, November 5, 2001
SEC Chairman Pitt complains that financial
Reports are backward-looking, hard to
understand, and don't highlight the
Information investors need. Some of the
improvements he is considering:
SLICE `N' DICE
Accountants are developing XBRL, a way of coding
financial reports on the Internet,
that will let investors download and manipulate
companies' numbers any way they like
The Case for XBRL
Students will need to collect, interpret and
report data in many different XML dialects
XBRL provides a bridge not only to financial
statements, but to all business reporting.
XBRL Business Uses
Internal Uses include:
Account analysis
Balanced Scorecard
Automated exception
reporting
Wireless, PDA
Cell Phone
The internal use of XBRL is just
Beginning to be explored, brought
on by XBRL for General Ledger in
public beta. New XBRL releases are
compliant with the latest version
of W3C’s XML Schema
XBRL Business Uses
External Uses include:
SEC Filings
Annual Reports
IRS and State Tax Filing Creditor Reports
Wireless, PDA
Cell Phone
Externally, XBRL focuses on the
production of GAAP financial
statements for the business financial
reporting supply chain. The external
focus of XBRL is evident by the
heavy participation in XBRL.org by
the AICPA and Big 5 Accounting
firms
XBRL International
International Accounting Standards and Major Countries are
changing the way Accounting is conducted world-wide
Hot spots of development include
Australia, Singapore, Germany,
Japan, followed by Canada, the
Netherlands, Spain, South Africa,
Hong Kong, Great Britain, and the
Scandinavian countries.
“I“The
believe
factthat
is that
the we
bestnot
way
only
forward
speakin
Stig
Enevoldsen
accounting
different accounting
is to converge
languages
towardsbut
one
also give
single
different
world-wide
interpretations
accountingof the
(Chairman
IASC)
September
1998
same eventslanguage.”
and transactions……
Sir David Tweedie
(current IASB Chairman)
The mission of the newly-created IASB
…is to increase the transparency of financial reporting by achieving a
single, global method of accounting for transactions -- whether in
Stuttgart, Sydney, Seattle or Singapore.
IAS Philosophy Implications
Need to define
One Accounting Language
One Transaction Methodology
Within the IAS Financial Reporting
Framework
To achieve the objectives of High
Quality Transparent Comparable
Financial Statements
The Vision
To produce
High quality,
Transparent,
Comparable,
General Purpose
Financial Reporting
to
International Accounting Standards
Using one accounting language
One transaction methodology
Which are useful for making
economic decisions.
The Vision for XBRL is no different!
Just do it
Electronically
in a binary environment
With the Seamless Transfer
Of Financial Information
In a known state
Without
Human Intervention
Accounting
Specification & Design
One accounting language
One transaction methodology
One presentation methodology
to define all the facts required
on an inclusive exclude basis
for a binary environment for the
seamless transfer of Financial
Information in a known state
without Human Intervention
The One Accounting Language Challenge
Language
System of words & rules of a particular community
Objective
Unambiguous globally understandable classifications
Accounting classifications
By nature and class
Scientifically extensible
A place for everything and everything in its place
To classify items as yet unknown
Absolute precision
Binary environment no room for judgment
Fact definition increases exponentially as judgment is eliminated
Mountain Zebra
Hartmans Zebra
ZEBRAS
Plains Zebra
Quagga
Bergzebra
Pyjama Donkey
ZEBRAS
Steppenzebra
Kwagga
Zebra
Grevy’s Zebra
(Equus Zebra Zebra)
(Equus Zebra Hartmannae )
(Equus Grevyi )
(Equus Quagga)
(Equus Quagga Quagga)
Many Human Presentations One Fact
in XBRL one fact with many labels
For example profit / non profit organizations
One Accounting Language Lessons Learned
Scientific language of accounting defines
a conceptual structure for the language
accounting facts within conceptual structure
Names facts for information content
Enterprise Information
Value information
Qualitative information
Spoken language or Skins – same fact different labels
economic
- profit / non profit
- public entity vs private enterprise
gaap
- different countries
languages
- dialects
Establish facts then resolve labels
Request fact clarification from IAS where ambiguous or undefined
Manage fact convergence and label convergence separately
XBRL: Tag Once, Report Many Times
IRS
Financial Data
tagged in XBRL
Style
sheets
Financial
Analysts
Annual
Report
Management
Team
SEC
What software ‘sees’
is the differentiator
and drives benefits
No Direct Connection
with Details
XBRL-enabled
Financial
Statements
Financial System
Drill
Down
Transaction Details
Note: Without
XBRL-GL, the
connection from
XBRL-enabled
financial statements
to transactional data
stops at the financial
system
Do You Need to Teach XML?
Yes
• Basics of XML are needed to
understand how business events
are captured and stored
• XML basics can be self-taught
or self-directed over the Web
• XBRL is valid XML
No
• This is Accounting, not
computer science
• I don’t have the time to teach
XML, I need to learn it first.
• XBRL will soon go “under the
covers” so I can ignore it.
XBRL Market Activities
•
•
•
•
MSDW SEC EDGAR filing
Singapore and Australia efforts
XBRL Academic Competition
“XBRL Essentials” and “Introducing XBRL:
Decision Making in a Digital Economy”
• Vendor support for XBRL
• Jurisdictional Activity/Status
Vendor Implementations
•
•
•
•
•
ACCPAC
CaseWare
Creative Solutions
e-Numerate
eKeeper
•KPMG’s “Columbus”
•KPMG Consulting
•Navision
•Newtec
•PPC
•XBRL Solutions
•SAP
•FRS (South Africa)
•FRx (Microsoft)
•Hyperion
•IBMATRIX
XBRL Media Summary
 213 articles for 12 months ended August 31, 2001
generating over 36 million impressions1
 Equivalent to over $6.1 million in annual advertising2
 Generated stories in major financial publications:
CFO, American Banker, Times of London, Barron’s,
Financial Executive, Financial Times, Financial
Director, Securities Industry News, Securities Week,
Wall Street + Technology, Pensions & Investments
 Secured major wire stories: Dow Jones, Bloomberg,
Reuters, Newsbytes News, ABIX
 24 total news releases issued by Consortium and
AICPA
1-Does not include wire stories or Web stories which have virtually limitless impressions.
2-Based upon ad dollar equivalents extrapolated for a one-year period; does not include ad
dollar equivalents for wire stories or Web stories.
Books, Articles, Videos
•
•
•
•
•
XBRL Essentials, Hoffman and Strand, June 2001
Introducing XBRL, Hannon and Coffin, January 2002.
AICPA E-business Update Video and Workbook, 2001.
IMA National Conference Video
Over 300 Articles, Special Section in Strategic Finance
Magazine (June 2001), Monthly XBRL Column
• SoftwareAG XML video www.softwareag.com
XBRL Tools
• Essentials include taxonomy builders, tools that
map output to XBRL, style sheets for display.
Neal Hannon
[email protected]
XBRL Education Co-chair IMA IT Chair
Credit to Dave Garbutt, FRS, SA