XBRL
Dr. Ernest Capozzoli
Kennesaw State University
Purpose
The purpose of this presentation is to:
• Discuss XBRL history
• Discuss Global Implications
• Discuss the SEC mandate
• Discuss the structure of the U.S. GAAP Taxonomy
and the IFRS Taxonomy.
• Share experiences in tagging financial statements
using USGAAP and IFRS.
• Discuss ongoing XBRL initiatives
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XBRL the Great Unknown
The Unknown
As we know, There are known knowns.
There are things we know we know.
We also know There are known unknowns.
That is to say
We know there are some things We do not know.
But there are also unknown unknowns,
The ones we don't know We don't know.
Don Rumsfeld
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XBRL Some Unknowns
There is much we don’t know about XBRL like:
• Scope and Role
• What is it?
• What is a taxonomy?
• What is an XBRL tool?
• What are the implications of the SEC mandate?
• What are the Global implications?
• What should we do?
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XBRL What is it?
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A linkbase is a collection of XML Linking Language [XLINK] extended links that document the
semantics of concepts in a taxonomy.
Calculation Linkbase - A calculation linkbase is used to relate XBRL concepts through the
application of basic calculation rules (e.g., A + B = C). This ensures the accuracy of the many
accounting equations that comprise XBRL reports and enables XBRL software to interpret
these relationships correctly and automatically derive the correct values from the input data.
Label Linkbase - This linkbase provides human readable strings for concepts. Using the label
linkbase, multiple languages can be supported, as well as multiple strings within each
language.
Reference Linkbase - This linkbase associates concepts with citations of some body of
authoritative literature. For example an SFAS or SEC ruls.
Definition Linkbase - This linkbase associates concepts with other concepts using a variety of
arc roles to express relations such as is-a, whole-part, etc.
Presentation Linkbase - This linkbase associates concepts with other concepts so that the
resulting relations can guide the creation of a user interface, rendering, or visualisation.
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Taxonomies?
• A taxonomy is a classification of financial
concepts
• Hierarchical in nature – a loose tree structure
with parents- children – grandchildren etc
• Example:
– Assets (Parent)
• Current Assets (Child)
– Cash (Grandchild)
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XBRL - Past
• Web pages are displayed using HTML however
HTML is not robust or flexible enough to
structure data
• With XML, it is much easier to write software
that accesses the document's information,
since the data structures are expressed in a
formal, relatively simple way.
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XBRL - Past
• Charles Hoffman, a CPA, begins project in April
1998 to define financial statements and audit
schedules using XML thus begins XBRL
development this link goes to a history page
• July 1999 AICPA funds XBRL initiative
• June 2001 XBRL announces development
effort to create XBRL for General Ledger to
allow tagged data to be moved into and out of
the general ledger. This will serve as a bridge
between business reporting and transaction
reporting.
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XBRL - US
• September -2004 XBRL-US unveils new
taxonomies for US GAAP
• October 2005 FDIC requires call report data be
submitted in XBRL +- 8,200 organizations
• December 2007 SEC completed a massive
project to update the US-GAAP taxonomy
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XBRL - US
• Taxonomy has been updated in 2008, 2009,
2011 with a release expected in 2012 this link
will take you to the taxonomy as well as other
information
http://xbrl.us/taxonomies/Pages/USGAAP2011.aspx
• Link to spreadsheet = Contains approximately
15,966 concepts
• SEC has mandated XBRL use beginning on
June 15 2009
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SEC Mandate
• The SEC released Rule 33-9002 on January 30, 2009 with
an effective date of April 13, 2009
• 2009 approximately 500 domestic and foreign large-cap
filers that have a $5 billion float were required to furnish
tagged financial statements and block-tagged notes.
• 2010 other large US GAAP filers - those with a $750
million float.
• 2011 will include the remaining US GAAP filers and
foreign private issuers using IFRS.
• In subsequent years the level of tagging detail will be
expanded to require that each table and note amount
be tagged separately
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XBRL - Globally
• IFRS taxonomy has also been through several
revisions
http://www.ifrs.org/XBRL/IFRS+Taxonomy/IFR
S+Taxonomy.htm
• Latest release is 4/1/2011
• Contains approximately 2,757 elements
• The IFRS Taxonomy 2012 is currently being
developed by the IASC Foundation XBRL Team
and is due for release by April 2012.
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XBRL - Globally
Established Jurisdictions
• XBRL Australia
• XBRL Belgium
• XBRL Canada
• XBRL Denmark
• XBRL France
• XBRL Germany
• International Accounting Standards
Board
• XBRL International, Inc
• XBRL Ireland
• XBRL Italy
• XBRL Japan
• XBRL Korea
• XBRL Luxembourg
• XBRL Netherlands
• XBRL South Africa
• XBRL Spain
• XBRL Sweden
• XBRL UAE
• XBRL United Kingdom
• XBRL United States
----------------------------------------------------Affiliate Organization - XBRL Europe
Provisional Jurisdictions
• Open Compliance Ethics Group GRC-XML
• XBRL China
• XBRL India
• XBRL Poland
• XBRL CH - Switzerland
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Taxonomy Comparison
•The US-GAAP taxonomy is much more detailed
•Contains all disclosures required by the SEC and
FASB as well as common practices.
•The question is - should US Filers give up the
level of financial reporting detail provided by
the current taxonomy in a move to IFRS
adoption?
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IFRS and XBRL
• The IFRS implementations are not monolithic
• There are country specific implementations of
IFRS
• Likewise – there will be country specific
implementations of the IFRS taxonomy.
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Implications :>(
• To meet current SEC filing requirements will
require extensions to the taxonomy.
• Using the IFRS taxonomy will require a
substantial amount of extensions!
• Extensions by their nature impact consistency
and comparability.
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Forms of XBRL Implementation
– Outsourcing –
• Bowne, Donnelly etc
– High level – Bolt-on
• Rivet Crossfire
• Fujitsu Interstage Xwand
– Embedded / Integrated - XBRL & XBRL Global
Ledger
• From legacy system straight into XBRL
Tagging Financial Statements
• What is tagging?
– It is the process of associating am element in the
taxonomy to an item on the financial statements.
– An XBRL tool (software) is required.
– Rivet Software has numerous products- the one
most commonly used is Crossfire.
– It is relatively easy to use.
– Uses Word and Excel.
– I will briefly demonstrate Crossfire
Dr Ernest Capozzoli and Dr Radwan Ali
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XBRL Tools
• XBRL requires that a tool be used to both view and work with
a taxonomy
• Numerous tools exist such as:
– Rivet Software – Crossfire
– Fujitsu software – Interstage Xwand
• Viewers
– Rivet Crossview
http://crossview.rivetsoftware.com/financial/
– Bowne/Donnelly Viewer https://xbrlviewer.bowne.com/
– XBRL US http://xbrl.us/research/Pages/default.aspx
– Yeti
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XBRL KSU is on the Leading Edge
• Many of our students have tagged
– Financial statements (Balance Sheet, Income
Statement and Statement of Cash Flows) for Macy’s,
Coke, Exxon, and others
– Disclosures / Notes for Accounting Policies, Debt,
Accruals, Taxes, Pensions as well as others
– IFRS filings for Fiat and converted Exxon and Coke into
IFRS using the IFRS taxonomy
• I will share with you some of the results of these
assignments
Dr Ernest Capozzoli
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KSU
• KSU we perform:
– Financial statement tagging (AIS)
– Disclosure tagging (Advanced Financial Reporting)
– IFRS tagging using IFRS taxonomy (International
Course)
• Still to be developed – Auditing XBRL
documents
Dr Ernest Capozzoli
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XBRL
What to do!?
• So what should be done?
• Be aware that taxonomy development is
driving some level of standardization for
financial reporting as well as other reports
• Be aware that software is changing at all levels
QuickBooks to SAP
Dr Ernest Capozzoli
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XBRL
What to do!?
• Become familiar with the terminology
• Understand the merits and limits of the
technology
• Ask yourself:
– What skills do I need to effectively implement
XBRL?
– Need to learn a tool
– Explore viewers
Dr Ernest Capozzoli
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XBRL It Has Arrived
Dr. Ernest Capozzoli
Kennesaw State University
Taxonomy Comparison
US-GAAP
IFRS
Total Elements
13,451
2,757
Monetary
6,091
1,542
String
4,598
1,180
Decimal
93
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Shares
200
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Date
104
2
Dimensions (tables)
280
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