Transcript Tax Data Collection and Other Nightmares XBRL GL, the

Tax Data Collection and Other
Nightmares
XBRL GL, the Journal Taxonomy, Today
Internal Reporting Track, November 5, 2003
8th XBRL International Conference, Seattle, Washington, USA
Eric E. Cohen, [email protected]
Audit Process Today
Taxpayer
Accountant
Agent
Audit
Following
up with IRS
Results
I want to be able to access
the underlying detail to
prove what you have
reported!
I don’t want you to
have that access –
but I want to be
able to get that
information myself!
My life would be
easier if the client’s
detail automatically
populated my writeup software.
Agencies Focus in on Tax Filing
Employment
Corporate
Income
Individual
Income
Total Taxes
Property
Sales
All Others
But … Is Everything on the Level?
Congress
Treasury
Tax Policy Analysts
Regulator
filing format
CLIENT
Department Level
Supp Info
Data
Submits
Regulations
News
Instructions
Filing formats
Reference
Extract
Division Level
Submits
Merge
Data
Supp Info
Data
Receives
Participants
Collect
Data
Dept Detail
Prepare
Report
Receives
Send
Group Level
Find
Sources
Supp
SuppInfo
Info
Forms
Forms
Query
Maintain
Definitions
Requests
Supp Info
Forms
Guidance
Checklists
Practitioner Aids
Organizer
Distributes
Processes
Integrated
Non-integrated
Outsources
ASP
Trading
Partners
Lenders
Other
Regulators
The
Market
Service
Regulator
Service
Extranet
Software developers
3rd Parties
Regulator
Holistic = Win-win-win?
 Format useful to tasks other than tax audit
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Consolidation (drill down from tax audit)
Movement to internal/external auditors
Movement to budget/forecast
Standard format for ASP marketplace
 Dealing with Taxes
 Direct
 Indirect
Data Transfer File Needs to Serve
 ONE TOOL
 Consolidation tool across systems
 Feeder for management systems
 Tool for internal and external auditors
 Audit
 Tax
 Electronic Audit Trail from source to final
 Paper source
 Electronic source
 SIMPLE ENOUGH FOR ALL
Depreciation
Tax specific accounts
Shared Needs for Direct and Indirect Taxes
Accounts
Resources
Documents
Tax specific entries
Entries
People
XBRL
Standards: Benefits to Firms Small and Large
 Smaller firms
 Internal integration – transparent, simple
 Integration with CPA tax systems
 Large company
 Preparation
 Consolidation
 Audit trail
 Filing
 Format
 Transport
 Integration with financial statement preparation
 Tax Note
 Research, cross organization analysis of effects of changes
To Meet The Need: XBRL GL
 XBRL GL, the Journal taxonomy
 Integrates accounting systems
 Provides detail later summarized in
 Financial reporting
 Tax
 Performance
 Represents almost anything categorized to
"accounts“
 Customer and vendor master file information
 Detail journals
 Information represented in US, Japanese or European
general ledger packages
Why is XBRL GL Needed?
Similar Data
Account, Amount, Date
Different Data Dictionaries: Field names, field order
System 1: AccountNo, Amount, Date
System 2: MonetaryAmount, PostDate, AccountNumber
System 3: PostingDate, Account#, Value
System 4: Date, Journal, Account, Amount
Different
Data Formats
CSV
ASCII
Different Representations for the
same concepts in common data field
Journal: PJ, Payroll Journal, Payroll
Date: 12-31-03, 20031231, 12/31/03
WKS
XBRL GL Spans the GAP
XBRL GL provides platform for agreedupon and well defined list of concepts –
Similar Data
make sure my “Account” and your
“Account” means the same thing (not bank
Account, Amount, Date account or customer account but GL
account.)
Based on XML, XBRL GL is order
Different Data Dictionaries:
Field names,
field names
order
independent;
sharing element
for import/export means that
System 1: AccountNo, Amount,
Date AccountNumberm
AccountNo,
Account# and Account will all be
System 2: MonetaryAmount,express
PostDate,
as oneAccountNumber
common name;
Different
applications will know what to expect
System 3: PostingDate, Account#,
Value
inpublishing and consuming data files.
Data Formats
System 4: Date, Journal, Account, Amount
CSV
So many external data formats; XML
provides a popular and increasing
supported / demanded
Representations
for thedata format.
Different
same concepts in common data field
Journal: PJ, Payroll Journal, Payroll
Date: 12-31-03, 20031231, 12/31/03
ASCII
WKS
Once you have agreed on data field
standardization, software applications
require agreement on content in many
cases. XBRL GL provides enumerated
values to supplement XML data standards
to help in this area.
Proprietary Formats: XML Alone
qbxml
qbxml
smbxml
smbxml
Intacct xml
Intacct xml
SAP
SAP
Peoplesoft
xml
Peoplesoft
xml
Oracle
Standards-based Data Interchange
qbxml
qbxml
smbxml
smbxml
SAP
Peoplesoft
xml
Industry transactional XML
XBRL GL
Intacct xml
Intacct xml
SAP
Peoplesoft
xml
Oracle
XBRL GL Can Represent
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The chart of accounts, representing both posting accounts and
customers, vendors, or other items that may be assigned an
account in an international sense of the word;
Journal entries, both from subsystems and within the General
Ledger or financial reporter;
Document summaries, with generic representations of the
information that is presented on standardized business documents;
Descriptions of customers, vendors, employees and banks, either in
connection with the chart of accounts (European style) or
independently (US style);
Descriptions of inventory items, performance metrics or other
quantifiable items;
Status documents, including listings of receivables still owing,
payables yet owed, inventory in stock, as well as
Standard accounting summaries such as trial balances, “general
ledger”, source journals and other accounting-oriented summaries.
XBRL GL Fills the GAPS between GAAPS
Tax
Regulators Investors
Creditors
Lenders Website
Aggregators
One
way
One
way
XBRL
BUSINESS
BUSINESS
REPORTING
Intra system
2-way
G/L Packages
ERP
Detail
XBRL GL
Journal
Taxonomy
Transaction
Creation
(e-)Business
•Orders
Suppliers
X12,
•Orders
•A/P
•Delivery
EDIFACT,
CRM
Detail to summary
Accounting
recognition/
classification
Customers
•A/R
XML•Delivery
INITIATIVES
2-way
From Bar Coded Transactions through …
 Transactions (eCommerce)
 Accounting entries and adjustments
 Estimates, allocations, eliminations
 Management, accountant entries
Invoice #: 10037
INVOICE
May 2, 2003
Item
Description
Qty
Extension
1078
1083
Blue Widget
Cyan Widget
200
100
2,803.78
1,402.93
Sub-total:
Freight:
Total:
47,592.33
47,592.33
<documentType>invoice</documentType>
<documentNumber>10037</document Number>
<documentDate>2003-05-02</documentDate>
Uses Of XBRL GL
One Vocabulary
One Framework
Trial Balance
Accounting
System
Adjustments
Budget
CPA
Accounting
System
Chart of Accounts
Customers, Vendors, Employees
Accounting
System
A
Open AR, AP, Inventory Status
Journal Entries, Ledger History
Accounting
System
B
Concluding
 One format
 From initial entry through the information supply
chain
 Facilitating audit
 Reducing compliance burden
 With international agreement and usage
 Facilitating a universal audit trail
 Facilitating write all, black box, audit trail report
 Providing integration for management and
beyond
After the Audit
Questions?
 Eric E. Cohen
 PricewaterhouseCoopers
 [email protected]
 (585) 271-4070
 Find out more
 www.xbrl.org
 www.pwcglobal.com/xbrl
<xbrl>
Eric E. Cohen
[email protected]