6th University of Kansas
International Conference on XBRL
Transparency, Assurance, and Analysis
April 26, 2013
J. Louis Matherne
Chief of Taxonomy Development
lmatherne@fasb.org
Topics
 Key Goals for 2013
 FASB Financial Data Analysis
 ASU Integration
 Understanding User Requirements
 UGT Element Usage
2
Key Goals for 2013
 Concurrent Taxonomy Exposure Drafts (TED)
/Implementation Guides (IG) with Accounting Standards
Updates Exposure Drafts
 Help drive improvements in data quality
 Promote a stable taxonomy
 XBRL Implementation Guides
 Increase input from data aggregators / users
 Establish banking / financial services industry group
 Support change management for all constituents
3
FASB Financial Data Analysis
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FASB Data Requests
 FASB XBRL Team assists in obtaining financial
statement data
 Disclosure topics where we have provided data:
-
Expected return of pension plan assets
FVO disclosures
Repurchase agreements
Joint ventures of REITs
Accounting changes and error corrections
Business combinations
Segments
Unremitted foreign earnings
Revenue recognition element use and label terminology
5
XBRL Data
Example 3 – FASB Data Request
Query:
 Identify trend in expected return on plan assets
Can this be obtained through XBRL data?
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XBRL Data
Example 3 – FASB Data Request
Key: Element Name
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XBRL Data
Example 3 – FASB Data Request
Run query
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XBRL Data
Example 3 – FASB Data Request
Results Exported to Excel
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XBRL Data
Example 3 – FASB Data Request
Results - Table
2008
2009
2010
2011
2012
Average
7.74%
7.49%
7.34%
7.08%
7.23%
Median
8.00%
8.00%
7.75%
7.50%
7.50%
Mode
8.00%
8.00%
8.00%
8.00%
7.50%
Max
12.30%
12.30%
15.00%
14.25%
9.20%
Min
2.50%
1.40%
0.40%
0.24%
3.00%
379
1126
1309
1288
57
Count
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ASU Integration
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Financial Reporting Model
Focus is on Principles
(Principles)
Accounting
Standard
Setters
Logical
(Business Requirements)
Data
Modelers
Traditional
print media
Physical
(Application)
Focus is on Application
Conceptual
New digital
media
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Taxonomy Exposure Draft Process
Accounting Standards Update (ASU) Exposure Process
On FASB
Agenda
Deliberate
Exposure
Draft
Ballot
Deliberate
Ballot
Final
Taxonomy Exposure Draft (TED) Process
Watch
Engage
Model
Disclosure
Expose
Taxonomy
Fragment
Revise
Revise
Final
Steps
• Create
example
disclosure
with ASU
Project Team
• Create
elements &
modeling
• Create
instance
document
• Expose TED
concurrent
with ASU
ED
• Revise based on
public feedback and
Board deliberations
• Release in
base taxonomy
as complete
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Accounting Standards Updates
 XBRL team member assigned to project team
based on topic area
 Participation/presence at Board discussions
 Links on website between exposure
documents and XBRL ASU Taxonomy change
page
 Benefits of earlier integration in the process




Inform standard setting process
Conceptually align approach
Consider implications of data model
Assist with research
15
Recent Projects
 Reclassifications from AOCI
- Discussions with project team influenced modeling - users wanted
effect of reclassification adjustments on Income Statement line items
- XBRL Team prepared memo to Board on impact to UGT of
presentation considerations
- Participated in Board meeting to discuss memo
- Follow up with Board member individually for further discussion
- Resulted in ASU containing XBRL team recommendation
(parenthetical requirement)
 Repurchase Agreements
- Discussions with project team on differences in definition of
repurchase agreements between ASUs (Balance Sheet Offsetting
and Repurchase Agreements)
- Identified need for additional element to reconcile
16
Recent Projects
 Revenue Recognition
- Discussions with project team regarding impact to UGT of changes
to presentation and disclosure requirements from original ED
- Identified area in which XBRL data could assist project team with
research
- Clarified intent regarding contract assets/liabilities resulting in
potential less impact to UGT
 Discontinued Operations
- Discussions with project team on appearance of redundancy in
disclosure requirements, inconsistency in implementation guidance
and reversion of definition
- Result is clarification of disclosure, removal of inconsistencies in
exposure draft and update of NTS for change in definition
17
Review of ASU Impact to UGT – XBRL Team
 Most current draft available/listen to Board discussions
- Important to understand underlying accounting & user
expectations
- Scope changes impact
- Focus on presentation / disclosure areas and
implementation guidance section
 Identify areas of UGT that will be impacted
-
Flat file useful for filtering (references, element search)
Amendment section of ASU
Identify disclosure sections of UGT impacted
Consider impact to other areas (cash flow, disclosure
overlap)
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Review of ASU Impact to UGT – XBRL Team
 Assess impact
-
New elements
Deprecations
Definition changes (conform to style guide)
Calculation relationship changes (additions, deletions)
Reference changes (additions, deletions)
 Structure appropriateness
-
Dimension/Line item approach
Balance type - Income or cash flow perspective
Period type – consider context guide
Item type – consider EFM, SEC Staff Interpretations
Question E.21, unit registry
- Conform to XBRL Style Guide
19
Review of ASU Impact to UGT – XBRL Team
 Discussion with project team
- Prepare targeted questions to clarify open items
 If extensive may be helpful to show specific section
of ASU compared to section of UGT
 Expectations of line items for general requirements
 Which amounts expected to agree to face financials
 Expectation of further breakdowns of values
 Impact to other areas of Codification/UGT
 Discussion with TAG
 Modeling considerations
20
Meeting Data Provider
Requirements
21
What we know so far about
data provider expectations
•
•
•
•
•
•
•
Data quality and assurance
Extensions are a concern but can be manageable
Tagged earnings release
Greater coverage of the 10K and 10Q
Reported fact value relationships matter
Much analysis is performed based on topic
How to identify changes from filing to filing and
taxonomy to taxonomy
• Prefer tabular information over narrative
• Expressed concern that service providers are providing
conflicting guidance
• Looking forward to inline XBRL
22
FASB –
Addressing data provider requirements
• Revised, streamlined, and stable calculation hierarchy
• Stabilize taxonomy but XBRL taxonomy and instances
will continue to change
 Need to focus on better change
management from a data provider
perspective
23
UGT Element Usage
24
UGT Element Usage 2012 10-Ks
“Rough” Estimate
25
UGT Element Usage 2012 10-Ks
“Rough” Estimate
26
27
28
29
30
31
UGT Element Usage
Assume All Used Equally
Normalized?
32
UGT Element Usage
Target?
33
UGT Element Usage – Ideal?
UGT Element Usage
Target?
34
Questions
?
35
Bonus Slides
36
Data Modeling in the Standard
Setting Process
37
Modeling ASU Presentation and
Disclosure Requirements
 Shift from modeling based on:
- Paper-based financial reports presentations
- COD/ASU descriptions and related implementation
presentations
 Shift modeling to:
- Consideration of underlying relationships among fact
values
- Contemplation of data consumption
38
Questions we need to ask
1. WHAT is the underlying relationships of reported fact
values based on common or unique disclosure structures?
2. WHAT is the best way to capture the underlying
relationship - through a calculation or dimensional
model?
3. WHAT is the most effective way to provide the
information to data consumers?
39
The General Principles Behind Our
“Data Modeling” Approach
General Principles:
 Recognize Primary Domain - Primary Line Items
 For example, Balance Sheet items, or “Revenue” etc.
 Identify Secondary Attributes or Disaggregation –
Dimension
 Each disclosure is a further description of face statement fact value attributes
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Connect Financial Reports Analysis with
Data Modeling
Other Considerations:
 Same Facts Should be Modeled in the Same Way
 Users’ Perspective/Business Objective
- Example Reclassification from AOCI ASU
The Board received requests from financial statement users looking
for the effect of reclassification adjustments on INCOME STATEMENT
LINE ITEMS; AOCI and reclassification components are two fact
value attributes of the primary domain and are modeled as
dimensions.
41
7 “What” Questions We Should Ask
During the Data Modeling Process
WHAT statutory requirements does the model need to capture?
WHAT common practice requirements does the model need to capture based on traditional paper-based
financial reports? *
WHAT is the underlying relationships of reported fact values based on common or unique disclosure
structures?
WHAT is the best way to capture the underlying relationship - through a calculation or dimensional model?
WHAT is the most effective way to provide data users the information?
WHAT is the common, flexible data model - “the template”?
WHAT taxonomy structural requirements (EFM, style guide, etc.) does the template need to meet?
* Subject to circumstance where no actual financial reports available
42
Line Item
Modeling
Approach
Generally acceptable for
items that are understood as
primary, (i.e., revenue, cost of
goods sold, etc.)
Comparability more affected
by line item extensions
WHAT is the best way to
capture the underlying
relationship?
Dimension
Modeling
Approach
Effective way to model the
disaggregation or attribute
identification of a primary
concept
Comparability less affected by
member extensions
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All fact value attributes will
be contained within the line
item as one concept.
Calculation
Relationship
WHAT is the most
effective way to
provide data users the
information?
All of the line items available
would have to be known that
relate to this information and
then searched for within the
data to see if it exists.
Allows the data to be “sliced
and diced” as needed by the
users of the information.
Dimensional
Relationship
Depending on what the users
of the information are
looking for, they can extract
the attributes that are
important to them.
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Organize the Disclosures in the “Template”
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Data Model Scorecard®
A tool that helps us evaluate the “template” post data modeling process.
#
Question
1
How well do the characteristics of the model support the type of model? 10
2
How well does the model capture the requirements?
15
3
How complete is the model?
15
4
How structurally sound is the model?
15
5
How well does the model leverage generic structures?
10
6
How well does the model follow naming standards?
5
7
How well has the model been arranged for readability?
5
8
How good are the definitions?
10
9
How consistent is the model with the enterprise?
5
10 How well does the metadata match the data?
TOTAL SCORE
Steve Hoberman & Associates, LLC
Score
Model Score %
Comments
10
100
www.stevehoberman.com
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Example – Other
Comprehensive Income
47
Disclosing Reclassifications Out of AOCI
on the Face Statements
How do you distinguish expense amounts before and after the
effect of reclassifications out of OCI?
How do you distinguish gain on sale of securities amounts
before and after the effect of reclassifications out of OCI?
What if there is more than reclassification adjustment?
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Using “Line Item” Approach
49
Using “Dimension” Approach
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OCI - Template
Entity XYZ
Notes to Financial Statements
Reclassifications out of Accumulated Other Comprehensive Income (a)
For the Period Ended December 31, 201X
Reclassification from Accumulated Other Comprehensive Income [Axis]
Reclassification from Accumulated Other Comprehensive Income [Member]
Equity Components [Axis]
New Axis
New Member
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Net
Unrealized Investment
Gain (Loss) [Member]
Accumulated Defined Benefit
Plans Adjustment [Member]
Derivative Instrument Risk [Axis]
Interest Rate Contract
[Member]
Gains and losses on cash flow hedges
Interest and Dividend Income, Operating
Interest Expense, Other
Revenues
Cost of Goods Sold
Credit Risk Contract
[Member]
Foreign Exchange
Contract [Member]
Commodity Contract
[Member]
1,000
(500)
2,500
(2,000)
Unrealized gains and losses on available-for-sale securities
Available-for-sale Securities, Gross Realized Gain (Loss),
Excluding Other than Temporary Impairments
Other than Temporary Impairment Losses, Investments, Portion
Recognized in Earnings, Net
Interest Expense, Other
2,300
(285)
(15)
Amortization of defined benefit pension items
OCI, Reclassification, Pension and Other Postretirement Benefit
Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost,
before Tax
OCI, Reclassification, Pension and Other Postretirement Benefit
Plans, Net Transition Asset (Obligation), Recognized in Net
Periodic Benefit Cost, before Tax
OCI, Amortization, Pension and Other Postretirement Benefit
Plans, Net Prior Service Cost (Credit) Recognized in Net Periodic
Benefit Cost, before Tax
(2,000)
(2,500)
(1,500)
Income (Loss), Including Portion Attributable to
Noncontrolling Interest
Income Tax Expense (Benefit), Continuing Operations,
Discontinued Operations, Extraordinary Items
Net Income (Loss), Including Portion Attributable to
Noncontrolling Interest
1,000
(250)
750
2,000
(500)
1,500
(6,000)
1,500
(4,500)
(2,250)
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Example - Revenue Recognition
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Revenue Recognition – Exposure Draft
 Disaggregation of Revenue
 605-10-50-6 An entity shall disaggregate revenue from
contracts with customers (excluding amounts presented
for customers’ credit risk) into the primary categories
that depict how the nature, amount, timing, and
uncertainty of revenue and cash flows are affected by
economic factors. To meet the disclosure objective in
paragraph 605-10-50-1, an entity may need to use more
than one type of category to disaggregate revenue.
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Revenue Recognition – Exposure Draft
605-10-50-7 Examples of categories that might be appropriate include all of the
following:
- a. Type of good or service (for example, major product lines)
- b. Geography (for example, country or region)
- c. Market or type of customer (for example, government and nongovernment
customers)
- d. Type of contract (for example, fixed-price and time-and-materials
contracts)
- e. Contract duration (for example, short-term and long-term contracts)
- f. Timing of transfer of goods or services (for example, revenue from goods
or services transferred to customers at a point in time and revenue from
- g. Sales channels (for example, goods sold directly to consumers and goods
sold through intermediaries).
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Revenue Recognition - Template
Preliminary Data Model of 605-10-50-7
55