Welcome to the Future
XBRL - Interactive Data
What is XBRL?
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What does XBRL stand for?
 X is for
eXtensible
 which means Adaptable
 B is for
 R is for
 L is for
Business
Reporting
Language
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XBRL is a developing
world-wide standard for
exchanging accounting and
business data.
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Giovanni di'
Medici
15th Century
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Luca Pacioli in Venice, Italy
(Circa 1495)
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April 1998
Charles Hoffman CPA
From 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.
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January 1999
The first prototype is unveiled
Entitled: XFRML –
eXtensible Financial Reporting Markup Language.
October 1999
High -Tech Task Force presents the First
Prototype of true XBRL
American
Institute of
Certified
Public
Accountants
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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February 2001
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.
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◦ XBRL now has 85 members. FDIC joins XBRL.
2010
February 2005
◦ Security and Exchange Commission institutes a
voluntary program to encourage companies to file
financial reports using XBRL.
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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)”
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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.
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XBRL is a advanced
version of XML
A type of Markup
Language
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Instance Document
◦ “Just the Facts”




Concept
Value
Context
Currency
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Taxonomy
◦ “Dictionary of Concepts”
 Concept
 Resources
 Relationships
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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.
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http://www.merriam-webster.com/dictionary/taxonomies
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Taxonomy for
Statement of
Financial Position
(Balance Sheet)
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Languag
e
Presentati
on
Accountin
g
Authority
Calculated or
Account
Number
Concept
Other information
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Rounding
(000)
Budget
/Audited
Cash
Equivalents
(Concept)
Company
Name
Currency - $
Date – as of
01/31/2009
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To 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
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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
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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
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The Results
◦ Produced the two statements
◦ Took longer than expected
◦ Cost more than expected
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The Lessons
◦ A GASB based taxonomy needs to be created.
◦ Require cooperation with all States
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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
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initiatives.
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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.
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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.
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The Grant has two
major parts
The Front End.
◦ Not an issue
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The Back End
◦ Post Award
◦ Close Out
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◦ Post Award
 Payment Processing
 Agency Monitoring
 Grantee Reporting
◦ Close Out
 Prepare Final Reports
 Financial Reconciliation
 Other
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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
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PL 106-107 required
Development of a common
application and reporting
system.
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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.
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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
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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
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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.
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In 2008 they received 4 reports!!
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As of June 2009 they had received 216
reports.
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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.
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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
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accuracy or integrity.
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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.
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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
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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,
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currency.
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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
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information.
Journal of Accountancy Oct 2008
2010
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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.
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Internet Resources:
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www.XBRL.org
http://xbrl.us
http://en.wikipedia.org/wiki/XBRL
http://tryxbrl.com/
XBRL for Dummies
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Comments or Questions
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