Welcome to the Future XBRL - Interactive Data What is XBRL? 22.APR 2010 What does XBRL stand for? X is for eXtensible which means Adaptable B is for R is for L is for Business Reporting Language 22.APR 2010 XBRL is a developing world-wide standard for exchanging accounting and business data. 22.APR 2010 22.APR 2010 Giovanni di' Medici 15th Century 22.APR 2010 Luca Pacioli in Venice, Italy (Circa 1495) 22.APR 2010 April 1998 Charles Hoffman CPA From Knight, Vale and Gregory in Tacoma, Washington 22.APR 2010 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. 22.APR 2010 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. 22.APR 2010 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. 22.APR ◦ 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. 22.APR 2010 ◦ 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. 22.APR 2010 “Use the same ‘Markup Language’ that Internet Web Pages use. eXtensable Markup Language (XML)” 22.APR 2010 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. 22.APR 2010 22.APR 2010 22.APR 2010 22.APR 2010 XBRL is a advanced version of XML A type of Markup Language 22.APR 2010 Instance Document ◦ “Just the Facts” Concept Value Context Currency 22.APR 2010 Taxonomy ◦ “Dictionary of Concepts” Concept Resources Relationships 22.APR 2010 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. 22.APR 2010 http://www.merriam-webster.com/dictionary/taxonomies 22.APR 2010 Taxonomy for Statement of Financial Position (Balance Sheet) 22.APR 2010 22.APR 2010 22.APR 2010 Languag e Presentati on Accountin g Authority Calculated or Account Number Concept Other information 22.APR 2010 22.APR 2010 Rounding (000) Budget /Audited Cash Equivalents (Concept) Company Name Currency - $ Date – as of 01/31/2009 22.APR 2010 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 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 22.APR 2010 “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 22.APR 2010 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 22.APR 2010 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 22.APR 2010 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 22.APR initiatives. 2010 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. 22.APR 2010 This AGA research paper focuses on the current state of grant management including the impact that XBRL can have on grant management. 22.APR 2010 The Grant has two major parts The Front End. ◦ Not an issue The Back End ◦ Post Award ◦ Close Out 22.APR 2010 ◦ Post Award Payment Processing Agency Monitoring Grantee Reporting ◦ Close Out Prepare Final Reports Financial Reconciliation Other 22.APR 2010 PL 106-107 Federal Financial Assistance Management Improvement Act of 1999 Proposed standard data elements for Federal agency use Sunset November 2007 22.APR 2010 PL 106-107 required Development of a common application and reporting system. 22.APR 2010 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. 22.APR 2010 22.APR 2010 22.APR 2010 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 22.APR 2010 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 22.APR 2010 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. 22.APR 2010 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. 22.APR 2010 22.APR 2010 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 22.APR accuracy or integrity. 2010 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. 22.APR 2010 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 22.APR 2010 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, 22.APR currency. 2010 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 22.APR information. Journal of Accountancy Oct 2008 2010 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. 22.APR 2010 Internet Resources: ◦ ◦ ◦ ◦ www.XBRL.org http://xbrl.us http://en.wikipedia.org/wiki/XBRL http://tryxbrl.com/ XBRL for Dummies 22.APR 2010 Comments or Questions 22.APR 2010