XBRL - Interactive Data

XBRL - Interactive Data

Welcome to the Future

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What is XBRL?XBRL - Interactive Data

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What does XBRL stand for? X is for

which means Adaptable B is for R is for L is for

XBRL - Interactive Data

eXtensible

BusinessReportingLanguage

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XBRL is a developing world-wide standard for

exchanging accounting and business data.

XBRL - Interactive Data

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History 101

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History 101

Giovanni di' Medici

15th Century

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Luca Pacioli in Venice, Italy (Circa 1495)

History 101

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April 1998

Charles Hoffman CPAFrom Knight, Vale and Gregory in Tacoma, Washington

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Financial data could be transferred or downloaded without rekeying.

Data could be exported into Excel or other programs intact.

No errors from Rekeying or Cut-and-Paste transfers.

Source and other information of the data could be included in transferred data.

Charlie’s Idea

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The first prototype is unveiled Entitled: XFRML – eXtensible Financial Reporting Markup Language.

American Institute of

Certified Public

Accountants

October 1999 High -Tech Task Force presents the First Prototype of true XBRL

January 1999

April 2000

AICPA and the soon to be “XBRL International” officially unveiled the first XBRL at press conference in New York City.

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1st XBRL International Conference in London. ◦ Representatives from 10 countries attend the first meeting.

◦ The International Accounting Standards Board has released a draft of an IAS taxonomy for review.

◦ Morgan Stanley announces that it has tagged its financials, sent information to the SEC in XBRL format and posted them to its web site.

◦ XBRL now has 85 members. FDIC joins XBRL.  

February 2001

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◦ Security and Exchange Commission institutes a voluntary program to encourage companies to file financial reports using XBRL.

February 2005

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◦ In 2006 the SEC revamped EDGAR (SEC reporting system) to support XBRL at the cost of $54 million

◦ May of 2008 the SEC requires, as of December 15, 2008 "large accelerated filers," to file their reports in XBRL.

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“Use the same ‘Markup Language’ that Internet Web Pages use.

eXtensable Markup Language (XML)”

What is a Markup Language

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A markup language is a system for annotating text in a way which is distinguishable from that text.

Markup is typically omitted from the version of the text which is displayed for end-user consumption. 

What is a Markup Language

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Editor Markup

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Legislative Markup

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XML (Extensible Markup Language) 

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XBRL is a advanced version of XML

A type of Markup Language

XML (Extensible Markup Language) 

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Instance Document◦ “Just the Facts”

Concept Value Context Currency

XBRL’s Main Components

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Taxonomy◦ “Dictionary of Concepts”

Concept Resources Relationships

XBRL’s Main Components

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Main Entry: tax·on·o·my Pronunciation: \tak-'sä-na-me\Function: noun

◦ 1 : the study of the general principles of scientific classification : systematics

◦ 2 : classification; especially : orderly classification of plants and animals according to their presumed natural relationships.

Taxonomy

http://www.merriam-webster.com/dictionary/taxonomies

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Taxonomy

Taxonomy for

Antennaria

monocepala

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Taxonomy

Taxonomy for Statement of

Financial Position (Balance Sheet)

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Taxonomy

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Taxonomy

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Taxonomy

Other information

Concept

Accounting

Authority

Language

Calculated or Account Number

Presentation

Cash Equivalents(Concept)

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Instance Document

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Instance Document

9,151,953

Date – as of 01/31/2009

Currency - $

Cash Equivalents(Concept)

Rounding (000)

Company Name

Budget /Audited

XBRL TermsTo exchange information using XBRL you need

both an instance document & taxonomy

Taxonomy◦ “Dictionary of Concepts”

Concept Resources Relationships

Instance Document◦ “Just the Facts”

Concept Value Context Currency

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In 2007 AGA decided to start a research project using XBRL◦ Focus on Public Sector◦ Study benefits of XBRL◦ Use the Comprehensive Annual Financial Report

(CAFR)◦ Oregon

The Oregon Project

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“Despite it potential for success and ongoing expansion in the private sector, application of XBRL in nearly any part of the public sector, … is little understood and applied.”

XBRL and Public Sector Financial Reporting Report No. 16

XBRL and the Public Sector

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The Plan:◦ 90 days to complete

◦ Focus on only two CAFR statements Statement of Net Assets

Tag 96 elements Statement of Activities

Tag 60 elements

XBRL and the Public Sector

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The Results◦ Produced the two statements◦ Took longer than expected◦ Cost more than expected

The Lessons◦ A GASB based taxonomy needs to be created.◦ Require cooperation with all States

XBRL and the Public Sector

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Unable to make further progress due to:

◦ Budget Cuts Due to the recession.

◦ Lack of the Development of a national taxonomy (integrating GASB into the GAAP).

◦ Lack of Resources due to new Federal and State initiatives.

Current Oregon Status

XBRL in Grant Management

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Grants are a major conduit the federal government provides funds to the states and others.

Grant Management is becoming more involved and complex with the grantor (the state) given greater responsibly of oversight.

XBRL in Grant Management

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This AGA research paper focuses on the current state of grant management

including the impact that XBRL can have on grant management.

XBRL in Grant Management

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The Grant has two major parts

The Front End.◦ Not an issue

The Back End◦ Post Award◦ Close Out

XBRL in Grant Management

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◦ Post Award Payment Processing Agency Monitoring Grantee Reporting

◦ Close Out Prepare Final Reports Financial Reconciliation Other

XBRL in Grant Management

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PL 106-107 Federal Financial Assistance Management Improvement Act of 1999

Proposed standard data elements for Federal agency use

Sunset November 2007

XBRL in Grant Management

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PL 106-107 required Development of a common application and reporting

system.

XBRL in Grant Management

Failed

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Reason for failure◦ Lack of definitions and formats.◦ No standardized terms

Grantees must track and report differently. Different agencies use terms for the same thing.

◦ Grant-making agencies using different reporting and payments systems.

XBRL in Grant Management

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Since June of 2009, public companies have submitted more than 1,400 financial filings

containing more than 5,000 problems related to the use of the U.S. GAAP

Taxonomy.

“Avoiding Common Errors in XBRL Creation,” XBRL U.S.http://xbrl.us/research/documents/AvoidingErrorsWhitePaper.pdf

Errors & Consistency

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Soon after the release of the report XBRL-US launched its XBRL Consistency Suite. A website that contains tools to indentify

errors and inconsistencies.

http://xbrl.us/research/pages/Csuite.aspx

Errors & Consistency

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The Danish registration authority receive and publish 140,000 class B annual reports each year.

The Plan: Year 2007 a full-scale XBRL solution for the Danish class B annual reports.

In 2008 they received 4 reports!! As of June 2009 they had received 216

reports.

The Danish Experience

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The concept of XBRL is easy i.e., transfer of data.

The application is complex. Software is the key We (accountants) must be ready to learn

about XBRL and work with the experts in the implementation.

Lessons

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Summary

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Each piece of business information has detailed descriptive and contextual information wrapped around it, so that the data becomes machine-readable and can be automatically processed and analyzed.

A financial or business report created once can be used to create many documents in different formats--HTML, ASCII text, Microsoft Word or Excel—with no loss of accuracy or integrity.

Summary

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XBRL enhances the ability to compare information from one organization or entity to another, because XBRL lays out a common set of definitions by which all organizations tag their data.

XBRL’s flexibility allows for unique reporting situations.

Summary

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XBRL is not an accounting standard and will not change what is reported, only how it’s reported.

The XML tagging means that the information in a business report is computer-readable and can be more easily extracted, searched and analyzed by users of that information.http://xbrl.us/101/Pages/FactSheet.aspx

Summary

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XBRL is a form of “Markup Language” that internet web pages currently.

XBRL is a system that allows financial data to be “tag” with specific information about that number.

A number can be tag with information such as calendar year, depreciation Expense, currency.

Summary

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XBRL doesn’t change the accounting standards or methods used for financial and business reporting, but it puts reported information into an instantly reusable computer- readable format.

Computer applications will automatically find comprehensive, granular data the instant it is posted online and flow it into analytical models for deep, automated analysis. XBRL is predicted to have a profound impact on any person or organization that creates or uses business information.

Journal of Accountancy Oct 2008

XBRL

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Impact of IFRS on transition.

XBRL would provide a wealth of benefits to the regulatory community.

Current no state or federal agency appears to be pursuing at least the foundation of XBRL.

XBRL

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Internet Resources:◦ www.XBRL.org◦ http://xbrl.us◦ http://en.wikipedia.org/wiki/XBRL◦ http://tryxbrl.com/

XBRL for Dummies

Summary

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Comments or Questions