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Taxonomy Review
Jennifer S. Moriarty, FASB
Yossef Newman, Deloitte
Sharyn Kohen, Ernst & Young
Taxonomy Review
Evolution of a Taxonomy Elements to Review Review Techniques Review Enablers Action Items
Evolution of a Taxonomy
US GAAP and International Financial Reporting Standards (IFRS) taxonomies created using:
Accounting and Reporting standards Accounting enablers (e.g. checklists) Financial statements XBRL tools
Participants: Trade organizations Public accounting firms Regulators
Evolution of a Taxonomy (Cont.)
Taxonomy Process Creators Domain groups Internal review Public review
Importance of Public Feedback
Consortium process: Public review Accuracy of taxonomies Area experts
Meet the needs of the ultimate users of taxonomies
Continuous public feedback is integral to effective taxonomy development
Public comments will be considered and incorporated where appropriate
Types of Reviews
Domain Industry Accounting Financial reporting
Technology Software validation Conformity with FRTA
Where do you find the taxonomies?
XBRL websitewww.xbrl.org
Under “What’s New: US releases 3 major
taxonomies for US GAAP…”
click on “Learn More…”
Choose the taxonomy you will review
Click on the BASI
taxonomy
Home page of the BASI taxonomy
Scroll down to
“Printout of taxonomy elements”
Select both PDF and Excel files of the Presentation Report
Save both PDF and
Excel taxonomy
files
Anatomy of an XBRL Element
XBRLElementXBRL
ElementFinancial
Reporting ConceptFinancial
Reporting Concept
XBRLElementXBRL
Element
Basic AttributesBasic Attributes
RelationshipsTo other Elements &
Information
RelationshipsTo other Elements &
Information
Anatomy of an XBRL Element
XBRLElementXBRL
Element
Basic Attributes
Basic Attributes Data type Data type
Balance TypeBalance Type
Period typePeriod type
DescriptionDescription
Tag Name (computer readable)Tag Name (computer readable)
Label(human readable)Label(human readable)
Monetary / String, etc.Monetary / String, etc.
Debit / CreditDebit / Credit
Instant / DurationInstant / Duration
“Amount paid in excess of the value assigned to the identifiable net assets acquired”.
“Amount paid in excess of the value assigned to the identifiable net assets acquired”.
IntangibleAssetsGoodwillIntangibleAssetsGoodwill
e.g. - “Goodwill”e.g. - “Goodwill”
Anatomy of an XBRL Element
XBRLElementXBRL
ElementPublisher : FASBName : Statement of Financial Accounting Stand.
Number : 142Paragraph : 23URI : http:/www.fasb.org/pdf/fas142.pdfURIDate : 2004-08-01
Publisher : FASBName : Statement of Financial Accounting Stand.
Number : 142Paragraph : 23URI : http:/www.fasb.org/pdf/fas142.pdfURIDate : 2004-08-01
Net Goodwill = Goodwill – Accumulated AmortizationNet Goodwill = Goodwill – Accumulated Amortization
Anatomy of an XBRL Element
RelationshipsTo other Elements &
Information
RelationshipsTo other Elements &
Information
CalculationCalculation
PresentationPresentation
ReferenceReference
Assets Cash & cash equivalents Property plant & equipment GoodwillTotal Assets
Assets Cash & cash equivalents Property plant & equipment GoodwillTotal Assets
Elements to Review Focus on accounting terms, not XBRL technology
Accounting: Concept Label (not XBRL technical name) Description Balance Type (e.g. Debit / Credit) Data type (e.g. monetary, string) Period type (e.g. duration, instant) References Presentation order Calculation (advance topic)*
Basic attributes
Relationships
Taxonomy in PDF
Balance Type
“Credit”
Period Type “Instant”
Date Type “Monetary”
Label “Accounts Payable”
Reference “APB
21”
Description “Amounts due to third parties for goods or
services received. Amounts have usually been invoiced”
Review Techniques
Comparison of taxonomies to: Company financial statements Internal accounting checklists / policies Accounting standards Industry Guides / common practice
Manual review of taxonomy Create instance documents (advanced topic)*
Review Techniques (Cont.)
Type of Feedback Missing terms Inaccurate information
Review performed by: Finance department Financial statement preparers Other accounting experts
Review Techniques (Cont.)
Depth of financial statement review Face of the financials Notes
Public taxonomy vs. Company extension
Review Techniques – Manual Review
Data Type “Monetary”
Balance Type
“Credit”
Period Type “Instant”
Label “Accounts Payable”
Description “Amounts due to third parties for
goods or services received”
Reference “APB
21”
Review Techniques
Balance Type “Credit”
Period Type “Instant”
Data Type “Monetary”
Label “Account
s Payable”
Reference “APB
21”
Description “Amounts due to third parties for
goods or services received”
Review against financial
statements
Review against Accounting
Standards, Industry Guides or Disclosure
Checklists
Comparison to Company financial statements
Look for the element “Goodwill”
in the taxonomy.
Comparison to financial statement Primary Terms Taxonomy Review of elements:
Balance type: Debit Period type: Instant Data type: Monetary Label: Goodwill Description: Amount paid in excess of the value
assigned to the identifiable net assets acquired. Reference: FASB Statement No. 142
Comparison to financial statement Primary Terms Taxonomy
Comparison to financial statement Primary Terms Taxonomy
Review the Presentation of the Elements“Statement of
Financial Position”
“Assets” is correctly listed on the Statement of Financial Position
“Cash and due from Banks” and “Interest Bearing Deposits in
Banks” are correctly listed as Assets on the
Statement of Financial Position
Review the Calculation of the Elements – Remember, Totals are on top!
Numerous types of line items for “Available for Sale Securities” total to the line item “Available
for Sale Securities”
All line items for “Marketable Securities” (e.g. Trading, AFS and
HTM) total to the line item “Assets”
“Assets” are included on the Statement of
Financial Position
Review Enablers
Reviewer’s Guide to Financial Reporting Taxonomies 1.0
PDF taxonomy reports Taxonomy editing software / instance creation
software GAAP Checklist, financial statements, accounting
standards Where to find information (XBRL.org) Feedback form
Where do I go for the Reviewer’s Guide?Start at the Reporting Taxonomy Framework webpage
Click on the BASI
taxonomy
Review Enablers – Reviewer’s Guide to Financial Reporting Taxonomies 1.0
On the homepage of the BASI Taxonomy
Scroll down to “Guidelines for
Taxonomy Review” The Reviewer’s Guide is
available in HTML and
Word
Feedback Form
Captures: Incorrect element attributes Missing elements
Where do I get the Feedback Form?Excel file of the Presentation Report
The Excel taxonomy file is the Feedback
Form
On the homepage of the BASI Taxonomy
Scroll down to “Printout of
taxonomy elements”
Feedback process – incorrect element attributes
c Assume that the balance type for
Goodwill was listed
incorrectly as a “Credit”
Feedback Form for BASI taxonomy – incorrect element attributes
Expand the row to view all the elements within the “Statement of Financial
Position”
This is the Excel file of the BASI taxonomy
you obtained from the
XBRL.org website
Feedback Form for BASI taxonomy – incorrect element attributes
Find the element “Goodwill”
on the Feedback Form
Include your comment in the column next to
the element “Goodwill”
Be Clear and
Concise!
Be Clear and
Concise!
Feedback Form for BASI taxonomy – missing element “Goodwill”
Assume the element “Goodwill” was
missing from the taxonomy
Feedback Form for BASI taxonomy – missing element “Goodwill”
For the element that is missing from the taxonomy include the following details: Element label: “Goodwill” Element description: “Amount paid in excess of the
value assigned to the identifiable net assets acquired” Balance type: “Debit” Period type: “Instant” Data type: “Monetary” Reference: “FASB No. 142”
Feedback Form for BASI taxonomy – missing elements
Find where the element “Goodwill”
should be presented in the taxonomy
Include new element detail
in the comment area
Missing element: Goodwill; description: Amt paid in excess of the value assigned to the identifiable net
assets acquired; Debit; Instant; Monetary; Reference: FASB No 142
Where do I send my Feedback Form?
Email the feedback form to the US Domain Working Group through Brad Homer at:
Don’t forget to include your contact information!
Action Items
Visit the XBRL international web-sites Review taxonomy review guide Review taxonomy applicable to you
Commercial & Industrial Banking and Savings Institutions Insurance In Process
Investment Management (public in November) Broker Dealer
Provide feedback 60 day review period – ending Nov 19th
Feedback form
Final release of taxonomies
Questions?
www.xbrl.org
XBRL Taxonomy Contact Point:
Brad Homer
