Transcript Beginner’s Guide to XBRL Karl Best, Executive Director

SEC Voluntary Filing Program
Taylor Hawes
Controller – Global Platforms & Operations
Microsoft Corporation
SEC Voluntary Reporting Program on the
EDGAR System
 Effective date March 16, 2005
 Allows companies to “furnish” XBRL tagged
financial statements
 Added Rule 401 to Regulation S-T allowing filers to
furnish supplemental information using XBRL
 Allows for company flexibility in filing financial
statements, with or without footnotes and MD&A
 Can submit XBRL tagged document either with the
official filing or as an amendment, however, there is
no submission deadline
 Must correlate to a standard GAAP Taxonomy
 Relief for liability if error is not materially
misleading or false
SEC Voluntary Reporting Program on the
EDGAR System
 SEC would like to study:
 Search capability of EDGAR database
 Capability to perform financial comparisons
amongst registrants
 Ability to perform financial analysis (ratios, etc.)
 Impact on staff’s ability to review filings more
timely and efficiently
 Use of tagged data for risk assessment
 Compatibility of XBRL with other Commission
requirements
Financial Reporting Process
Financial Reporting XBRL Project
Publish Instance Document & Taxonomy
Review &
Validate
Instance
Document
Assess Scope
of
Extend the taxonomy if
necessary
Reporting & Download
Taxonomy
Identify a team: Accountant &
Developer (XML)
Create an instance
document and validate
calculations
Compare & map
10K/10Q to GAAP
Taxonomy
Microsoft Facts….
 Was one of the first companies to make XBRL tagged
financials available on www.microsoft.com March 2002
 Was the first company to furnished complete 10Q March
2005 quarter (MD&A, Financial Statements and
Footnotes) in anticipation of Voluntary Filing Program
 Was the first company to furnish complete 10K FY2005
80+ Hours for first effort
Used 4 different programs to extend, tag and validate
Instance document totaled 92 pages
Over 8,000 tagged items
Over 20 Taxonomy extensions
Most significant challenge was footnote tables for “Segment
Reporting”
 Instance document was reviewed 3X by two different people
 Did not request audit of tagged document
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Internal Value Proposition
Enterprise Use of XBRL
Business
Performance
Management
Business
Operations
Competitive
Analysis
Risk Management
Acquisition
Integration
Data
Auditor tools
404 Monitoring
General Ledger
Consolidation
Data
Real-time
Connection
Data
Drill
down
Internal Reports
External
Reports
SEC Filings
SEC
Disclosure
Checklist
Dept of
Commerce
Banks