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Perspectives on Structured Data and U.S. Securities and Exchange Commission (SEC) and Staff U.S. GAAP Taxonomy Updates
April 3, 2014
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Housekeeping Items
CPE credit is available for viewing the live program. Today’s program will be worth approximately 1.5 CPE credits. CPE credit is not available for group viewing. Each participant must be registered separately and meet both polling and duration requirements as per NASBA.
To receive CPE credit, you must: – Stay on for the required number of minutes
– Respond to the required number of polling questions
– Complete the course evaluation at the end of the program.
Housekeeping Items: CPE & Evaluation
Housekeeping Items: Archived Webcasts
A recording of the Webcast will be available
online at www.fasb.org for 90 days (CPE credit
will not be available to those who watch the
archived program).
Hal Schroeder
Financial Accounting Standards Board
Board Member
Donna Johaneman
Financial Accounting Standards Board
Project Manager XBRL
David Shaw
Financial Accounting Standards Board
Assistant Project Manager XBRL
Meredith Cheng
Financial Accounting Standards Board
Project Resource Associate XBRL
Today’s Panelists
J. Louis Matherne
Financial Accounting Standards Board
Chief of Taxonomy Development
Kimberly Earle
U.S. Securities and Exchange Commission
Office of Interactive Data
Vickie Lusniak
Financial Accounting Standards Board
Assistant Project Manager XBRL
Melissa Nicholson
Financial Accounting Standards Board
Project Resource Associate XBRL
SEC update
2014 U.S. GAAP Financial Reporting Taxonomy
(UGT) highlights
FASB XBRL Implementation Guides
Plans for 2015 UGT and beyond
Structured data discussion
Example of structured data use
Today’s Program
Have you read the release notes for the 2014
release of the U.S. GAAP Financial Reporting
Taxonomy (UGT)?
a) Yes
b) No
c) Not yet, but plan to
Question 1
SEC Update
The Securities and Exchange Commission, as a
matter of policy, disclaims responsibility for any
private publication or statement by any of its
employees. The views expressed herein are
those of the author and do not necessarily
represent the views of the Commission or of the
author’s colleagues upon the staff of the
Commission.
Disclaimer
SEC Update
The views expressed in this presentation are
of the presenters. Official positions of the
FASB are reached only after extensive due
process & deliberations.
Disclaimer
2014 U.S. GAAP Financial Reporting
Taxonomy (UGT) Highlights
Update for accounting standards
Revised calculation hierarchy
Other changes
2014 UGT—Highlights
2014 UGT—Change Comparison
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2011 2012 2013 2014
UGT Change Comparison
New Elements Deprecated Elements Definition Changes *
*Includes definition changes to approximately 500 elements for maturity schedules. See section titled "Maturity Schedules" in the Release Notes for further details.
2014 UGT—New Accounting Standards Updates (ASUs)
ASU Impact
Comprehensive Income (Topic 220):
Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive
Income (2013-02)
In 2013 UGT.
Liabilities (Topic 405): Obligations
Resulting from Joint and Several Liability
Arrangements for Which the Total Amount
of the Obligation Is Fixed at the Reporting
Date (2013-04)
13 new elements; 2 modified
documentation labels.
Presentation of Financial Statements
(Topic 205): Liquidation Basis of
Accounting (2013-07)
13 new elements; 4 modified
documentation labels.
Derivatives and Hedging (Topic 815):
Inclusion of the Fed Funds Effective Swap
Rate (or Overnight Index Swap Rate) as a
Benchmark Interest Rate for Hedge
Accounting Purposes (2013-10)
1 new member; 1 modified
documentation label.
Income Taxes (Topic 740): Presentation of
an Unrecognized Tax Benefit When a Net
Operating Loss Carryforward, a Similar
Tax Loss, or a Tax Credit Carryforward
Exists (2013-11)
1 deprecation.
Have you reviewed materials provided on or through
the ASU Taxonomy Change page on the website?
a) Yes
b) No
c) Not yet, but plan to
Question 2
FASB XBRL ASU Taxonomy Change Page
Effects of revision:
Included new elements
– Example – discontinued operations
Deprecated certain elements and replaced with more precise
elements
– Example – cash flow elements for sale-leaseback
Rationalized the number of calculations to be more succinct
Rationalized the number of relationship groups containing the
calculations
Revised Calculation Hierarchy
Changes made to discontinued operations:
Revised Calculation Hierarchy
Separate elements for distinct concepts as follows:
Revised Calculation Hierarchy
Other Changes
New elements for offsetting assets and
liabilities
New line item elements for accumulated
unrealized gain (loss) disclosures for
securities – Allows for calculation of line items from fair value to
amortized cost
Other Changes—AFS Example
Other Changes
Maturity schedule definitions
Creation of Tax Period [Axis]
Industry-specific changes
- Insurance
- Federal Home Loan Bank
- Airline
- Oil & Gas
Other Changes—Maturity Schedule Example
Fiscal maturity schedule The following is an example of a fiscal year filing:
The following is the interim disclosure:
Other Changes—Maturity Schedule Example
Rolling maturity schedule
The following is the interim disclosure:
The following is an example of ―rolling‖ year
disclosure for fiscal-year end:
Other Changes
References reviewed and updated
Removal of industry entry points
Removal of 2011 UGT deprecated
elements
If the maturity schedules are rolled from reporting
period to reporting period, which set of elements
should be used for an annual filing?
a) Fiscal year
b) Rolling maturity
c) Both
d) Not applicable
Question 3
XBRL Implementation Guides
Final
- Subsequent Events*
- Liquidation Basis of Accounting
- Segments*
- Insurance: Reinsurance*
- Insurance: Concentration of Credit Risk*
*Updated to 2014 UGT release
XBRL Implementation Guides
Exposed – 2015 Release
- Disposal Groups and Discontinued Operations*
Exposed – 2014 Release
- Notional
- Other Comprehensive Income*
Expected
- Offsetting Assets and Liabilities*
- Stockholders’ Equity
- Other ASUs
- Other targeted topic areas
*ASU related
XBRL Implementation Guides
Implementation Guides (IGs) will be exposed for comment
on the FASB website www.fasb.org.
Comments should be submitted in one of three ways:
- Email to [email protected]
- Written comments to Chief of Taxonomy Development
- Complete an electronic feedback form to respond to the questions
contained in the proposed XBRL Implementation Guide or proposed
Style Guide
Comments will be considered and a final XBRL IG will be
issued after consideration of comments.
XBRL Implementation Guides Process
XBRL Implementation Guides
XBRL Implementation Guides
Format of example:
- Sample disclosure
- UGT Elements used — label and element name
- Structure underlying the instance document
- Notes
Have you used the XBRL Implementation Guides
available on the FASB website?
a) Yes
b) No
c) Not yet, but plan to
d) Not applicable
Question 4
XBRL Implementation Guide—Shareholders’ Equity
Internally
Identified Areas
Public
Comments
New Taxonomy
Changes
XBRL Implementation Guide—Shareholders’ Equity Overview
XBRL Implementation Guide—Shareholders’ Equity
Example Illustration
Element Selection of Equity Attributable to Parent and Noncontrolling Interest
XBRL Implementation Guide—Shareholders’ Equity
Example Illustration
Element Selection of Equity Attributable to Parent and Noncontrolling Interest
(Continued)
―Stockholders' Equity, Including Portion Attributable to
Noncontrolling Interest‖ is used when an entity reports
noncontrolling interest as part of aggregated
shareholder’s equity.
―Stockholders' Equity Attributable to Parent‖ is used on
the reported fact value that represents the part of the
shareholder’s equity attributable to the parent. This
element also is used when Noncontrolling Interest is not
reported.
XBRL Implementation Guide—Shareholders’ Equity
Example Illustration
Element Selection of Limited Liability Company (LLC) Members' Equity
XBRL Implementation Guide—Shareholders’ Equity Example Illustration Element Selection of Limited Liability Company (LLC) Members' Equity (Continued) Portion of UGT elements provided specifically for the modeling of the
LLC entity for unit-related disclosures:
- Common Unit, Authorized
- Common Unit, Issuance Value
- Member Units [Member]
- Members' Equity
- Members' Equity Attributable to Noncontrolling Interest
- Limited Liability Company (LLC) Members' Equity, Including Portion
Attributable to Noncontrolling Interest
- Limited Liability Company (LLC) Members' Equity, Unit-based
Compensation
Additional elements for LLC equity disclosures are located under
―Limited Liability Company (LLC) Members' Equity [Abstract]‖ and
―Distribution Made to Limited Liability Company (LLC) Member [Line
Items]‖.
If the reported fact value represents only the
Shareholder’s Equity attributable to the parent, which UGT
element should be chosen to tag the reported value?
a) Stockholders' Equity, Including Portion Attributable
to Noncontrolling Interest
b) Stockholders' Equity Attributable to Parent
c) Stockholders' Equity Attributable to Noncontrolling
Interest
d) None of the above
Question 5
Example 1
XBRL Implementation Guide—Offsetting of Assets and Liabilities
Example 2
XBRL Implementation Guide—Offsetting of Assets and Liabilities
Example 3
XBRL Implementation Guide—Offsetting of Assets and Liabilities
Example 4
XBRL Implementation Guide—Offsetting of Assets and Liabilities
FAQs—UGT
FAQs—UGT
FAQs—UGT Sections
FAQs—UGT Sections
FAQs—UGT Sections
FAQs—UGT Highlighted Questions
If the element name does not match the standard label,
should that be corrected in the UGT?
a) Yes
b) No
Question 6
Plans for 2015 UGT and Beyond
2014 Goals (2015 Update)
Improve Data Quality
Drive Structured Data Mindset Into the
Standard-Setting Process
Improve Data Quality
Shift focus and resources to targeted topics
- Comprehensive and consistent topic review
- Engage constituents throughout process
- Targeted changes will be easier to implement
- Nontopic changes for errors and ―technical corrections‖
Improve Data Quality
Potential target areas for 2015 Update - Pensions
- Fair Value
- Share-Based Compensation
Deliverables will include - XBRL Implementation Guide
- Taxonomy changes
Improve Data Quality Build Consensus on Key Issues
Continue developing UGT decision framework
Establish XBRL ―Simplification‖ initiative
Identify versioning requirements
Drive Structured Data Mindset Into Standard-Setting Process
New Accounting Standards Updates
(Anticipated For 2015 Update)
- Reporting Discontinued Operations
- Consolidation
- Financial Instruments
- Development Stage Entity
- Goodwill
- Technical Corrections & Improvements
- Various EITF Issues
Drive Structured Data Mindset Into Standard-Setting Process
New Accounting Standards Updates
(2016 or Later Update – assumes no early
adoption provision)
- Revenue Recognition
- Leases
- Insurance Contracts
Drive Structured Data Mindset Into Standard-Setting Process
New to Board Agenda - Accounting for Financial Instruments—Hedging
- Accounting for Financial Instruments: Interest Rate
Disclosures
- Accounting for Tax Credits
- Conceptual Framework
- Financial Statement Presentation
- Liabilities & Equity—Short-term Improvements
- Pensions—Cash Balance Plans
- Simplification Initiative
Which of the topic areas that we have identified for
possible focus in the 2015 release would you select as a
priority?
a) Pensions
b) Share-based compensation
c) Fair value disclosures
d) Other topic not listed
e) Not applicable
Question 7
Board Perspective on Structured
Data
R. Harold Schroeder Remarks
http://www.fasb.org
Which of the following would be a form of structured data?
a) Baseball Statistics
b) Telephone Directory
c) XBRL Exhibits
d) Form 1040
e) All of the above
Question 8
Structured Data Usage—Example
Example—Background
Internal Professional Development Session
Investor Case Study
2 XBRL ―models‖: - Industry analysis
- Company-specific analysis
Tool: Add-in for Microsoft Excel
Industry Analysis—Engines & Turbines
Industry Analysis—XBRL Inputs
Industry Analysis—Company Selection
Company-Specific Analysis
Tools—Where to find?
