Xbrl

The Next technology Revolution XML XBRL 1 Todays Objectives Overview of XML & XBRL Show you how this technology strives doing E argument Faster Cheaper Better Conclusion 2 Lets move up the Value Chain Transactions data schooling acquaintance Decisions Transactions information Information Knowledge Decisions Transactions Data Information Knowledge Decisions Transactions Data Information Knowledge Decisions 3 Evolution to nett Services Web Program the Web rake the Web Web Services schoolbook Files Web Pages Innovation FTP, E-Mail, Gopher Connectivity TCP/IP hypertext mark-up language XML 4 Automation Presentation Technology XMLXML stands for eXtensible Markup Language Universally accepted method of exchanging cultivation 5 eXtensible Markup Language is a meta markup language the World Wide Web Consortium (W3C) considers a universal ideal for describing both structured data and the behavior of applications that process the language. 6 What Is XML? XML is a platform-i ndependent, self-describing, expandable, warning data exchange format 7 XML is Platform Independent Windows Unix Macintosh Mainframe Linux 8 XML is egotism-Describing Self Example July 26, 1998 Describes the tuition, non the presentation Format neutral XML is Expandable Whereas HTML has a fixed stripe of tags , , XML lets you create your own tags 10 How does it work? XML gives meaning to information through the use of tags Saad Hafizi COB Chairman, Novac 21 Caution.. Just because something is .. Does not mean it is accurate? 11 The XML Puzzle XML Document Core Schema diversity Tools sedulousness Specific Vocabularies Company Specific Vocabulary 12 How XML Works How XML Works Improves the instruction companies and applications helping information Enjoys strong attention and vendor support 13 What is XML? What XML is not not a religion. Not the solution to all world problems. Not a solution for all electronic commerce problems. Not a solution to all lega l-technology problems. XML is a Tool XML is a Really Cool (Powerful) Tool care all tools, XML can be used wisely and unwisely. 14 Why is XML so Important? man-portable Vendor neutral Readable data format More flexible and easier to use than EDI All major(ip) software products are becoming XML alterd Defacto standards for data exchange Enabling new levels of interoperability 15 XML Widely pass judgment to reduce cost of publishing to the Net by as some(prenominal) as 50%. And by next year Gartner Group prediction 70% of all B2B transactions executed on the Web will be done using XML. 16 Who defines the tags? Tags are defined by industry consortiums all(prenominal) industrys standard tags are commonly referred to as a taxonomy 17 Content in Context (Industry-specific) Auto Industry Chemical Industry Publishing or Mythology Music Industry Aerospace uranology 18 Whos Building Taxonomies? Accounting Economics EDI Healthcare Legal Publishing Science publicise Architec ture Communication E-Commerce fiscal Insurance News Retail Supply Chain 19 self-propelling Banking Education ERP HR Music Real Estate software systemDefines Tags 20 XBRL multinational is gaining strength XBRL activities occurring in get together States Canada Australia China & Hong Kong Japan Malaysia New Zealand Singapore Taiwan Germany India Ireland Netherlands Nordic Federation (Denmark, Norway, Sweden) South Africa Spain Switzerland unify body politic And on a global level through the global Accounting Standards Council International Press Tele converses Council International Standards Organization 21 XBRL International is gaining strength On a Global level through the International Accounting Standards Council International Press Telecommunications Council International Standards Organization On a Country Level United States Canada Australia China & Hong Kong Japan Malaysia New Zealand Singapore Taiwan Germany India Ireland Net herlands Nordic Federation (Denmark, Norway, Sweden) South Africa Spain Switzerland United ground 22 XBRL Impact The explosive growth of the Internet is not only changing the way companies direct their course, it also promises to forever alter the way they communicate cable performance. CFO Magazine, February 2000 23 XBRL Documents XBRL for fiscal controls XBRL for frequent Ledger XBRL for Journal Entry coverage XBRL for Credit report XBRL for Performance Press Releases XBRL for insecurity account XBRL for Regulatory Filings XBRL for Tax Filings XBRL for Assurance Schedules XBRL for Authoritative Literature XBRL for Business Reporting 24 Whos embracing XML now? Software developers Using XML as the core technology for new products Database developers Building XML support into their products. Industry groups Deciding how information should be shared. Organizations Investigating how to tie their inter and intra company processes together. 25 XML for Financial Reporting Enables a dramatic improvement in the processing of fiscal reports XBRL documents can be Prepared efficiently Exchanged reliably Published more easily Analyzed quickly Retrieved by investors simply to enable smarter investments 26 Benefits XBRL is NOT a new accounting standards but enhances the scattering and usability of exist financial teaching information Enabler and an extension for relational database functionality for all financial relation information 7 Problems XBRL Addresses Ineffective communication to investors Inefficient aggregation and analysis Inefficient creation of financial statements 28 Why XBRL ? Enable business coverage that leverages the Internet & XML Effective access and analysis of business reports Improve corporate communications with stakeholders 29 Who benefits serve Benefits Lowering Financial Reporting Cost Todays external coverage processes rework and delay Ad hoc and non repeatable No path forward Accounting carcas s Explanatory Text Third Party Information Printed Financials Regulatory FilingsWeb Site Tax go across Trade Filings 30 Who benefits Process Benefits Lowering Financial Reporting Cost Common interchange format and storage is good information management practice depresss redundancies & discrepancies Repeatable processes using tools A platform for continuous reporting Accounting System Explanatory Text Third Party Information XBRL Documents Printed Financials Regulatory Filings Web Site Tax Return Trade Filings 31 XBRL Interoperability & Multiple Uses G/L Package ERP XBRL Custom highly-developed Systems US generally accepted accounting principles Financial Statement In English US generally accepted accounting principles Financial Statement In DutchUS GAAP Financial Statement to the Web US GAAP Financial Statement to Print XBRL another(prenominal) Sources of Information XBRL former(a) Sources of Information Other Sources of Information US GAAP Financial Statement to Cell resoun d XBRL Interoperability & Multiple Uses G/L Package ERP US GAAP Financial Statement Investors & Creditors XBRL Custom Developed Systems EDGAR Filing XBRL Tax Filing XBRL Government Other Sources of Information Bank Filing XBRL News Agencies And Others Other Sources of Information Other Sources of Information Press Release Once Every Event is tagged in XBRL G/L Package ERPIAS Financial Statement in German US GAAP Financial Statement In English French Tax Filing Investors & Creditors XBRL Custom Developed Systems XBRL XBRL Government Other Sources of Information Canadian Banking Filing XBRL News Agencies And Others Other Sources of Information Other Sources of Information EDGAR 10k line power point via Cell Phone XBRL Working Model Planned Specifications XBRL for G/L Journal Entry Reporting XBRL for Financial Statements XBRL for EDGAR Filings Processes Business Operations Internal Financial Reporting External Financial Reporting investiture and Lending compendiumXBRL for Business E vent Reporting XBRL for Tax Filings Financial Publishers and Data Aggregators Participants Companies Investors Trading Partners Management Accountants Auditors Regulators Software Vendors XBRL not a Transaction Protocol What it is XBRL is merely a format to serialize complex, structured financial data e. g. , statements, G/Ls. thitherfore, it cannot replace OFX, ebXML, ANSI X. 12 Trans Set 821, OMG G/L Spec, Future message sets in those protocols could include XBRL tagged data if they need to send financial statements in the message body. XBRL provides a fabric and an AICPA approved vocabulary that can be extended to many other reporting frameworks. 36 XBRL not an accounting standard Means of communicating Current GAAP Current practice Flexible standard Future standards Future general practice 37 XBRL A Fragment of a Raw Data Raw Data in Spreadsheet Company Coca Cola Co. Coca Cola Co. Financial Statement Balance Sheet Line Item CurrentAssets. Cashand CashEquivalents Curre ntAssets. Cashand CashEquivalents Label CurrentAssets. Cashand CashEquivalents CurrentAssets.Cashand CashEquivalents Year 1999 Value 1611 Balance Sheet 1998 1648 identical Raw Data in XML (XBRL) Format $1,611 $1,648 38 39 What software sees is the variediator and drives benefits (here is an example) 40 greatness of Reporting What excites the CEO is the ability to know what the business is doing at any given point in time, react quickly to merchandise shifts and competitive threats and remain in tight control while empowering employees to make informed decisions more quickly. Year End Earnings Release Call August 10, 1999 John put up cisco CEO 41 Virtual Close TheBest Practice has, in my opinion, just as much impact on a companys future success or lack therefrom as the wellpublished e-commerce area. Year End Earnings Release Call August 10, 1999 John Chambers Cisco CEO 42 XBRL Impact If Europe moves quickly to take up these standards, it could give them an attractive ma larkey in the race to accessible and comparative key data that would stimulate investor interest. It would undoubtedly spawn a plethora of research tools that would be useful to both private and professional investors. Investors Chronicle, August 9, 2000 43XBRL and the Emergence of eeStandards E-Standards are fundamental HTML is the standard that enabled the nets first Big Step XML is the webs next Big Step Over 200 XML-Based Specifications and Protocols exist, including RosettaNet computer company supply scope and trading webs OBI Open Buying on the Internet retail e-commerce FpML Financial Products (Derivatives, Swaps, FX) ACORD XML Insurance industry information exchange standards derived from EDI. UN/CEFAC = EBXML XBRL is uniquely focused on financial reporting 44 Standard . orgs (reporting vs e)Accounting / Auditing Reporting ASB IASC FASB IFAC SEC Territory Institutes e-Business W3C OASISUN/CEFAC T (ebxml) xml. org RosettaNet ACORD What about these? CPAs participate / lead in these The range of what is under development today HR CRM Horizontals (Infrastructure) there are others.. XBRL is uniquely focused on etcetera business reporting CHEMX RosettaNet ACORD FpML ANX Verticals (Industry Supply Chains) there are others. XBRL Adds Reporting to E-Commerce ETax One way Regulators Investors Creditors Lenders Website One way Aggregators bank line ERP G/L Packages CRM 2-way SuppliersTransaction Creation 2-way Orders A/P delivery Orders A/R slant Customers 47 XBRL Adds Reporting to E-Commerce ETax One way Regulators Investors Creditors Lenders Website One way Aggregators BUSINESS G/L Packages ERP CRM BUSINESS REPORTING XBRL 2-way Suppliers Transaction Creation 2-way (e-)Commerce OTHER XML INITIATIVES Orders A/P Delivery Orders A/R Delivery Customers 48 XBRL What Key XBRL Components XBRL / XML Specification (XBRL. org) Global architecture/technology XBRL hierarchical vocabulary (jurisdiction/industry) Dictionary of impairment by ju risdiction/industry sector Style Sheets XBRL enabled tools (preparer) (market) 49 Key to our Success Market driven model Start simple, be inclusive Broad supply chain participation Members support XBRL Members do not compete on the framework Build structure & systems to support open community & market development 50 Steps in Technology Acceptance Acceptance Simplification/Tools Taxonomy Visionaries 51 Financial Institutionsand their Users Institutions SMALL BUSINESS provides FINANCIAL INSTITUTION with their information in XBRL and receives loan approval in less(prenominal) than a day sort of of two daysor two weeks.Average Time for Loan bear on1. 75 days Value-added Analysis and Decision-making? 90% + time spent on Mechanics Less Risk With = Better Or Mechanics Analysis Mechanics Analysis Mechanics Analysis Mechanics Analysis Process more loans in the same amount of time 52 Benefits to Todays Users 1. Reduce cost of analyzing and reporting financial information 2. Increase s peed and efficiency of business decisions 3. Enhance the distribution and access of existent financial statement information 4. More readily exchanged 5. Increase and enhance analysis 53 Benefits 1.Reduce cost of analyzing and reporting financial information 2. Increase the speed and efficiency of business decisions 3. Enhance the distribution and usability of existing financial statement information 54 Example Cost Reduction International Subsidiaries openhanded multi-national corporation uses XBRL to quickly rollup, analyze and publish the financial statements of numerous subsidiaries in variant countries with different languages using different GAAP on different computer systems 55 Benefits 1. Reduce cost of analyzing and reporting financial information 2.Increase the speed and efficiency of business decisions 3. Enhance the distribution and usability of existing financial statement information 56 Example Efficient Decisions Major mutual fund company feeds XBRL-ize d information to customers to fall apart their funds as more objective and reliable investments An investor uses XBRL to compare the financials for a range of companies Belonging to different revenue levels Located within an industry sector Along multiple analytical criteria 57 Benefits 1. Reduce cost of analyzing and reporting financial information 2.Increase the speed and efficiency of business decisions 3. Enhance the distribution and usability of existing financial statement information 58 Loan Approval Example Credit Small Business provides Bank with their financial information in XBRL and receives loan approval in 1 minute instead of 2 days Credit Approval Company approves customer assent request with automated estimation processes facilitated by XBRL Line of Credit Company provides capital markets with financial information in XBRL and receives expedited line of credit 59 XML Shortcomings?Not a replacement for integration and middleware tools Lots of Hype, not a solution for everything There are many different standards among industries Standards still evolving But, you cant wait while the standards evolve. 60 XBRL Development & Adoption Final Thought.. Change is not what it used to be.. Change has flummox a process its become a permanent part of the external environment 62 Summary FASTER BETTER CHEAPER Our profession will have to follow technology and record business activity in an real-time mode. 63 Concluding Remarks .. 64