“In times of change learners inherit the
earth, while the learned find themselves
beautifully equipped to work in a world
that no longer exists.”
Eric Hoffer
XBRL Solutions, Inc.
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XBRL Steering Committee and XBRL Solutions, Inc.
XBRL: Executive Overview
Charles Hoffman, CPA, MBA
XBRL Solutions, Inc.
Tacoma, Washington
(253) 752-9429
CharlesHoffman@xbrlSolutions.com
XBRL Solutions, Inc.
2
“I can provide you with any piece of
financial information, from any company,
in any language, according to any set of
generally accepted accounting principles,
anywhere on this earth – including on this
cell phone, or up in that airplane.”
XBRL – ride the light…
XBRL Solutions, Inc.
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Objectives
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To provide an overview of XBRL
To provide background to help you to see
why XBRL is important
To explain how XBRL works, so you can see
what problems it can and cannot solve
Demonstrate XBRL in action
To communicate information relating to the
build-out of XBRL
De-mystify any aspects of XBRL or XML
you need de-mystified
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Agenda
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Who am I
Who are you
What is the Solution
What is the Problem
Conclusions
Additional Information
Questions and Discussion
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Who am I
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CPA, MBA
Price Waterhouse auditor
Financial officer for 12 years
Database/accounting tool developer to help me do
my job
Consultant – helped other accountants use
technology
AICPA Innovative User of Technology Award
recipient (1997)
Wrote an article explaining XML for Journal of
Accountancy (1999)
XBRL Steering Committee Member
Played key role which helped start the XBRL wheel
rolling
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Who Are You?
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What is the Solution?
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What is the Solution?
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Internet (TCP/IP, HTTP, SMTP) – standard
communications infrastructure
HTML (XHTML) – standard document format
XML – language for building information exchange
languages
XBRL – an information exchange language, based
on XML
Other XML-based languages for transactions,
reporting, any data exchange
SOAP (Simple Object Access Protocol) – one
computer application talking to another computer
application
User agents – applications which work over the
Internet, not just web browsers
Intelligent Agents – result of all of the above
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What is the Solution?
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You will best appreciate XBRL if you understand the
Internet and the problems that XML solves for the
Internet
You will best appreciate XML if you understand the
problem XML solves
You will best appreciate the fundamental nature of
the change that is occurring (has occurred) if you
understand WHY the change can occur
This is NOT a technical presentation, but we will talk
about technology
Security is implied throughout this presentation
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Security
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The Internet will NEVER be perfectly secure
Nor will banks ever be perfectly secure
Nor will your house be perfectly secure
Nor will your car be perfectly secure
Security will ABSOLUTELY need to be
addressed and solutions imbedded in
everything addressed in this presentation
It can be
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The Internet
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The Internet: Cost Effectiveness
“Everyone can be a publisher
of information with as little
as an HTML enabled word
processor, a free file
transfer program, and a $19
a month account with an
Internet Service Provider.”
XBRL Solutions, Inc.
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The Internet: What is it?
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In the “early days”, email made up 85% of
use of the Internet
Web browser?
HTML?
Web pages
What is this “second generation” Internet or
Internet 2?
XBRL Solutions, Inc.
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The Internet Is…
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Standards - everyone agreeing to use TCP/IP
More Standards - like HTTP, HTML, FTP, SMTP
HTML – the “killer app” that made the Internet take
off, but is NOT the Internet
(Think of the PC and the “killer app” – the spread
sheet – when they were first introduced; think of
where PCs are now; project where the Internet will
be if it follows the same curve)
HTTP – the REAL “killer app”
XML – the data exchange standard
User Agents – of all sorts, not just web browsers
Intelligent Software Agents – possible because of all
of the above
Bottom line: Making possible for $100 what used to
cost $100,000
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And the Internet means…
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Small companies can act like large companies
Large companies can act like small companies
Every company is a “dot com” company, whether
you want to be or not
(Funny how companies did not refer to themselves
as “telephone companies” when the phone came out
or “paper companies” when paper was invented)
Fundamental change of infrastructure
Big opportunity, but also a big threat
Change
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XML
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XML: Everywhere
“XML should be everywhere! Every
database should be able to import
and export XML-formatted text.
So should every programming
and scripting language. That’s
the purpose of XML; to break
down the barriers and to allow all
kinds of data to be interchanged
with all kinds of software.”
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XML: Fundamental and
Important
“XML gives Java something to
do.”
John Bosak, Sun Microsystems
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XML: What is it?
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eXtensible Markup Language
Works well over Internet, but DOES NOT
NEED THE INTERNET to be useful.
Simpler derivative of SGML (Standardized
Generalized Markup Language) which has
been a standard for 10+ years
Data focused cousin to presentation
focused HTML (Hyper Text Markup
Language)
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XML is a…
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platform independent,
self-describing,
expandable (extensible),
standard data exchange format
that can be used either independently or embedded
and used within other solutions.
It is both readable by humans, and understandable
by computers.
It was designed to work well over the Internet
and built so it can easily be embedded within
Internet-related products.
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XML is …
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“The last missing piece of the Internet”
Catching on like wild fire – no other technology has
caught on so quickly
A solution to a fundamental problem – effective
exchange of all sorts of data
Its value is directly proportional to its use – and it is
being used
Is a language for building languages – needs things
like XBRL to work
Will transform the Internet from “pictures” or
“individual documents” to a big, interconnected
database
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XML: Versus EDI
EDI
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XML
Optimized for
compressed messages
EDI server costing
$10,000 to $100,000
Uses proprietary EDI
VAN
Months to learn
Requires C++
programmers
Machine readable
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Optimized for easy use
and programming
Web server costing less
than $5,000
Uses Internet
connection
Hours to learn
Requires JavaScript,
VB, Python, Perl
Human and machine
readable
Source: The Gartner Group
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XML: Initiatives
There are hundreds, including:

XBRL – eXtensible Business Reporting Language
(reporting oriented)
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ebXML – Electronic business information
(transactions oriented)
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NewsML – News stories
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HR-XML – Human Resources
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OAG – Open Applications Group, integration of
enterprise applications

Rosetta.net – Electronics industry data/transaction
exchange, supply chain integration
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See XML.ORG
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XML: Example
<?XML version=“1.0”?>
<!DOCTYPE FinancialStatement SYSTEM
“http://www.xml.com/FinancialStatement.dtd”>
<FinancialStatement>
<CompanyName>The World Online, Inc. </CompanyName>
<CurrentYear>1998</CurrentYear>
<PriorYear>1997</PriorYear>
<BalanceSheet>
<Assets>
<CurrentAssets>
<Account Name=“Cash” Balance=“101,577”/>
<Account Name=“Receivables” Balance=“232,438”/>
<Account Name=“Inventory” Balance=“858,219”/>
<Account Name=“Other” Balance=“1,490”/>
</CurrentAssets>
...
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XML: What is it?
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Adds structure to unstructured data
A universal database format
A universal file format
A universal transaction format (alternative
for and then a replacement of EDI)
A universal data integration format
A universal metadata format (data
dictionary)
Last missing piece of the Internet
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XML: What can you do with it?
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Nothing new, just more effective and efficient way of
doing “the same old things”
Cheaper and better – a lot more effective and
efficient
Better searches
Better data exchange (EDI)
Multiple representations for one document: as raw
data, print, web, CD-ROM
Report and organize data
Automatically and reliably extract and reuse data
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XML: Better Searches
Not Museum of
Byzantine
Architecture
Search Engine
(MBA)
<Degree
Level=“Masters”
Type=“MBA”>
Not Marimba
Not MBAR
Consulting,
Inc.
Not MBA
Records
Degree with Type=“MBA”
Resume
MBA
XBRL Solutions, Inc.
<Education><Degree Level=“Masters”
Type=“MBA” Year=“1994”>MBA, University of
Michigan School of Business,
1994</Degree></Education>
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XML: Better Data Exchange
BAI
XML
Proprietary
IRS tax filings
OFX
SWIFT
EDGAR
ACH
EDI Transaction
Sets
FSML
Accounting
System
Accounting
System
The Internet
Unix
Mainframe
TCP / IP
Windows NT
Silicone
Graphics
XBRL Solutions, Inc.
AS/400
Netware
AIX
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XML: Multiple Representations
25
20
15
Region
East
Central
West
South
Sales
12
17
22
14
10
5
0
East
Central
West
South
East
South
Central
Region
Total
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Sales
65
Region
Sales
East
12
Central
17
West
22
South
14
Total
65
West
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And XML means…
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Cheaper, more reliable interoperability
Less reliance on proprietary solutions
You can actually exchange word processing
documents and the formatting does not get
goofed up
Another fundamental change in
infrastructure
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I say tomato, you say…?
Image if everyone used the same operating system
and database platform, and all the platforms were
connected, and they all used the same data query
language… The Internet (TCP/IP, HTTP) and XML
provides this.
I say tomato, you say tomato.
But what if we called the same things in those
databases by different terms? XBRL and other XMLbased languages minimize this problem.
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XBRL
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XBRL: What is the Problem?
“The Electronic Dissemination of Accounting
Information – Resource Discovery, Processing
and Analysis”
Roger Debreceny, Glen Gray, Tony Barry
glen.gray@csun.edu
XBRL Solutions, Inc.
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XBRL: What is the Problem?
“Business Reporting on the Internet”
Andrew Lymer, Roger Debreceny, Glen Gray,
Asheq Rahman
International Accounting Standards Committee
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XBRL: What is the Problem?
“Electronic Distribution of Business Reporting
Information”
Financial Accounting Standards Board (FASB)
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Text Document
(Glob of Text)
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XML/XBRL
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Financial
Statement
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Financial
Statement XML/XBRL
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XBRL: Not “New Standards”
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XBRL is not about setting accounting
standards
XBRL is about expressing accounting
information electronically in a format to
make re-rendering that information easier,
including on paper – but also in other forms
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XBRL: Framework
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eXtensible business Reporting Language
Not just financial statements, a framework
XBRL for Financial Statements
XBRL for Management Reporting
XBRL for General Ledger Transactions
XBRL for Edgar Filings
XBRL for Administrative Reporting
XBRL for …
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XBRL: Cross-references
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One XBRL taxonomy can be crossreferenced to another XBRL taxonomy, as
required
XBRL will cross-reference to other XMLbased languages, as required
XBRL can be cross-referenced to relational
databases – you DO NOT need tags in
relational databases, just a simple method
of establishing the cross-reference
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XBRL: Components Detail
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Core Schema explains how to build
instance documents
Meta model explains how to build a
taxonomy
Taxonomy(s) – dictionary or vocabulary
Instance document(s) - database
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XBRL: Components Summary
Meta
Model
(How to create Taxonomy,
used by all taxonomies)
CI Taxonomy
(Describes terms/concepts)
Company
Taxonomy
(Describes terms/concepts)
Media Taxonomy
(Describes terms/concepts)
type
Core Schema
(How to create instance)
Instance
Document
(Such as financial statement)
KPMG Taxonomy
(Describes terms/concepts)
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XBRL: Terms
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Specification – describes how, in XML terms,
taxonomies and instance documents are to be built
Taxonomy – “dictionary” of facts
Instance – “database” of facts (items)
Element – XML element, such as <item> or <group>
Item – one fact
Group – helps organize items
Label – describes (or overrides) items
Attribute – provides additional descriptive
information for item
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XBRL: Understanding
All these are on the XBRL.ORG web site:

Specification

Taxonomy
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Sample Implementation

Training and Help Resources
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XBRL: Design Goals
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“Bleeding Edge” – designed with an expectation of
what the technology will be; works right now, will get
even better as technology catches up, mostly XML
Schema
Loosely Coupled (email example)
Modular in nature
International in nature
Cross-reference to other XML-based languages
Imbedded within other XML-based documents
Flexibility
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XBRL:
Taxonomy
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XBRL:
Taxonomy
Viewer
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XBRL Solutions, Inc.
XBRL:
Taxonomy
Printout
51
XBRL Solutions, Inc.
XBRL:
Taxonomy
Builder
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XBRL Solutions, Inc.
XBRL:
Instance
Creator
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XBRL: Taxonomy
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<element> - financial/accounting “concept” or
“fact”; name attribute “hooks” it to instance
document; type attribute describes the data type
<documentation> - description of the element
<xbrl:rollup> - identifies the parent and how it relates
to the parent; weight describes how it
mathematically relates; order attribute describes the
order
<xbrl:label> - provides a “default” label for the
concept or fact; xml:lang identifies the language
which their can be any number; labels can be overridden
<xbrl:reference> - provides ability to reference to
literature; name, number, chapter, paragraph,
subparagraph
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XBRL: Taxonomy Element
Sample
<element name="statements.accountantsReport" type="string">
<annotation>
<documentation>Report(s) issued by independent accountant or
internal accountant.
If two reports are issued, two accountant
report sections should appear</documentation>
<appinfo>
<xbrl:rollup to="statements" weight="0" order="3" />
<xbrl:label xml:lang="en">Accountant's Report</xbrl:label>
<xbrl:reference name="SAS" number="58" chapter="" paragraph=""
subparagraph="" />
</appinfo>
</annotation>
</element>
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XBRL: Instance Documents
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<group> - generic grouping mechanism
<item> - pieces of information
<label> - override labels of taxonomy
Attributes – further describe items

id, entity, type, schemaLocation, unit, period,
scaleFactor, precision, decimalPattern, formatName
<group type="ci:cashCashEquivalentsAndShortTermInvestments.
cashAndCashEquivalents">
<label href="xpointer(..)" xml:lang="en">Cash</label>
<item id="BS-01" period="1999-05-31">26983</item>
<item id="BS-02" period="1998-05-31">18197</item>
</group>
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XBRL: Attributes
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id – unique identifier
entity – identifies the entity
schemaLocation – location of the taxonomy used
type – “maps” to accounting concept
unit – identifies the unit such as “US Dollars”
period – identifies the period
scaleFactor – identifies the “multipler”: thousands,
millions, etc.
precision – identifies how “trustworthy” is the
number
decimalPattern – identifies the pattern of the number
provided: is a negative in (), is there a thousands
seperator, what indicates the decimal place, not
everyone does this like the US
formatName – extends the decimalPattern attribute
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XBRL: type Attribute
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type attribute “hooks” instance document
item to a taxonomy
Taxonomy has additional information for
type
Data type, parent, weight, label, description,
reference to literature, etc.
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XBRL: Instance Group/Item
Sample
<group entity="NASDAQ:GPSI" unit="ISO4217:GPSI" >
<item type="ci:cashCashEquivalentsAndShortTermInvestments.
cashAndCashEquivalents" period=“1999-01-31" >-1000.01</item>
</group>
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XBRL: Missing Attributes?

Budget or Actual?
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XBRL: How Components Fit
Core
Schema
Document
Schema
Mapping
Schema
Domain
Schema
Domain Domain
Schema Schema
An XBRL Document
Style
Sheet
XSLT
An HTML Document
XBRL Solutions, Inc.
XSLT
Application
New XBRL Document
61
XBRL Benefits: Reuse
Printed
Financials
Web Site
Accounting
System
XBRL
Other
Sources of
Information
Regulatory
Filings
Tax
Return
Bank
Filings
Internal Use
Financials
XBRL Solutions, Inc.
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XBRL Benefits: Analysis
Now – majority of cost relates to data discovery and re-keying
Data
Data
Discovery
Mechanics
(Re-keying data)
Analysis
Conclusion
With XBRL – cost can be re-directed to analysis
Data
Data
Mechanics
Discovery (Re-keying data)
Analysis
Conclusion
With XBRL, Intelligent Agents – total costs are reduced, analysis enhanced
Data
Analysis
Conclusion
* Bars represent component cost, total bar length represents total costs
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63
XBRL Benefits: Financial Supply Chain
Text
Credit
Application
+
Banks
Text
Report
+
Text
Regulatory
Filings
EDGAR (Text)
10-K
Report
GL
Report
+
+
+
+
+
Statements
in Print
Statement
in PDF
C of A
Operational
Data Stores
+
Statement
on Web
Internal to entity
Text
External (Investors, creditors, regulators, etc)
Auditor
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XBRL Build-Out: Specifications
XBRL for G/L
Journal Entry
Reporting
Processes
Business
Operations
XBRL for Financial
Statements
Internal
Financial
Reporting
XBRL for Business
Event Reporting
External
Financial
Reporting
Trading
Partners
Investment
and Lending
Analysis
XBRL for
Tax Filings
Financial
Publishers
and Data
Aggregators
Companies
Participants
XBRL for
EDGAR Filings
Management
Accountants
Auditors
Investors
Regulators
Software Vendors
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65
XBRL Build-Out: Financial Reporting
Financial Reporting Standards Across Jurisdictions
Industry Specific Reporting Standards
U.S.
IAS
U.K.
Germany
Australia
Canada
…
Don
…
e
…
…
…
…
…
…
…
…
…
…
US GAAP
CCI,
& I,extended
extendedtoto
Software
Companies
Software Companies
…
…
…
…
…
…
…
…
…
…
…
…
US GAAP
CCI,
& I,extended
extendedtoto
Media&&Entertainment
Entertainment
Media
…
…
…
…
…
…
…
…
…
…
…
…
US GAAP
CCI,
& I,extended
extendedtoto
Agriculture
Media & Entertainment
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
US GAAP
Commercial&Industrial
Commercial
Industrial
(CI) Companies
(C&I)
Companies
US GAAP
FinancialServices
Services
Financial
Companies
Companies
…
…
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66
XBRL Build-Out: Taxonomies
Under Development

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

CI International Accounting Standards
CI Canada
CI Germany
CI Australia
CI New Zealand
CI Singapore
US Federal Government
Financial Institutions US
Financial Institutions Australia
General Ledger Transactions
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67
XBRL: Adoption
Adoption
Tool Development
Taxonomy Development
June 2000
December
2000
XBRL Solutions, Inc.
June 2001
December
2001
June 2002
December
2002
June 2003
68
XBRL: Demos





Sample Financial Statement
Excel Extraction Demo
Excel Extraction, Office Integration
Comparing Companies
XBRL Validator
FreeEdgar Demo
XBRL Solutions, Inc.
Comparison
Comparison
Comparison
Validator
69
XBRL: Means…





XML is a little bit more important because it
has yet another language available for use
Automated extraction and reuse is possible
Cheaper interoperability
Consumers win
Another fundamental change in
infrastructure
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70
Soap
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71
Soap






Simple Object Access Protocol
RPC (Remote Procedure Call) over the
Internet
One computer application talking to another
computer application on a different
computer
HTTP-based
XML-based
Standard, cheaper, easier cross-platform,
cross-computer application to application
communication
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72
User Agents
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User Agent
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User Agents




A web browser is ONE user agent
Anything that understands HTTP is a user
agent
Microsoft Access is a user agent. So is
Excel, Word
Microsoft.net
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75
Intelligent Agents (Bots)
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76
Intelligent Agent
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Intelligent Agents




Possible, because of the cheap connections
provided by the Internet
Possible, because of HTTP to send a
request, and receive a response
Possible, because of XML as a standard
way to exchange data
Possible, because of the languages, like
XBRL, which explains information in terms
computer applications understand
XBRL Solutions, Inc.
78
Conclusions
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Conclusions





The Internet has enabled standard global
networked communications similar to the
telephone, the radio, and the television
Standards save money
A fundamental change in business
infrastructure has occurred
A fundamental change in business is
occurring driven by this change in
infrastructure
XBRL is part of this new infrastructure
XBRL Solutions, Inc.
80
Additional Information




XBRL.ORG web site
Scientific American, May 1999, “XML and
the Second – Generation Web”, John Bosak
and Tim Bray
Journal of Accountancy, May 1999, “The
XML Files”, Charles Hoffman, Christopher
Kurt and Richard Koreto
A CEO’s Guide to eCommerce Using
Object-Oriented Intelligent Agent
Technology, Peter Fingar
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“I can provide you with any piece of
financial information, from any company,
in any language, according to any set of
generally accepted accounting principles,
anywhere on this earth – including on this
cell phone, or up in that airplane.”
XBRL – ride the light…
XBRL Solutions, Inc.
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Questions
and
Discussion
XBRL Solutions, Inc.
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