XBRL: Where are we? Update for business and technical professionals

XBRL: Where Are We? Update for Business and Technical Professionals

May 15, 2009

Charlie [email protected]

UBmatrixwww.ubmatrix.com

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Presenters

Charlie HoffmanDirector of Innovation Solutions at UBmatrix; CPA, MBA, Co-architect of the US GAAP Taxonomy for financial reporting and member of the taxonomy creation team; key member if IFRS-GP taxonomy creation team; Former Price Waterhouse auditor; Received the AICPA's Innovation User of Technology Award; Graduate of Pacific Lutheran; Author of many white papers and publications including "Financial Reporting Using XBRL", "XBRL Essentials", "Hitchhiker's Guide to the IFRS-GP Taxonomy".

http://www.slideshare.net/CharlesHoffman

Presentation is available at SlideShare.net

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XBRL for Dummies coming soon…

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Agenda

• Quick XBRL Primer

• XBRL: Where are we?

• Interesting observations, trends

• Predictions

• XBRL “killer applications”

• How I intend to leverage XBRL

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Tags (Structured Information)

<gaap:NetIncomeOrLoss contextRef="Period-2009" unitRef="US-Dollars" decimals=“-3">5347000</gaap:NetIncomeOrLoss>

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XBRL: Where are we?

• Projects around the world

• Analysts coming to the table

• SEC project will provide insights

• XBRL and XML boundaries

• XBRL and Semantic Web technology boundaries

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Projects Around the World

• Similar types of projects appearing in countries around the world

– Regulators of stock exchanges and securities

– Regulators of financial institutions (banking supervisors)

– Business registrars

– Revenue reporting and tax filing agencies (the tax man)

– National statistical agencies

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Analysts Coming to the Table

• CFA Institute Paper (http://www.cfapubs.org/toc/ccb/2009/2009/3) – Principle 1: Disclosure neutrality

– Principle 2: Limited extensibility

– Principle 3: Global initiative

– Principle 4: Open source

– Principle 5: Regulator cooperation

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• XBRL – “one of the more successful Semantic Web metadata format”

SEC Project will Provide Insights

Web 1.0 Information

Web 3.0Information

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XBRL and XML Boundaries

• XBRL is XML, uses XML syntax

• XBRL expresses meaning; XML only articulates syntax

• XBRL allows validation against expressed meaning

• XBRL separates concept definition from content model

• XBRL can express multiple (infinite) hierarchies of explicit relations

• XBRL provides organized, prescriptive extensibility

• XBRL enables “intelligent”, metadata driven connections to information

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XBRL and Semantic Web Technologies Boundaries

• RDF and OWL are key semantic web technologies

• XBRL called “one of the more successful Semantic Web metadata format”

• RDF is a graph database (so is XBRL)

• OWL expresses complex metadata/semantics (so does XBRL)

• XBRL appears to be:– Like a “database” or publishing mechanism

– Business information specific metadata

– A transfer/transport medium

• Remember EDGAR/IDEA comparison from earlier

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Interesting Observations, Trends

• XBRL works well for technical people– FDIC system works well

– Lots of organizations have implementing XBRL successfully

– No glaring failures

• XBRL does not work as well for business people– One business person exchange information with another business

person with no IT involvement

– Flexible system

• Goal is business person to business person information exchange within an open, flexible system

• We are moving in the right direction (slowly)

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Predictions

• SEC project with highlight some XBRL realities, it will push the XBRL envelope

• SEC will make XBRL work, with extensibility

• That will push changes in financial reporting

• IFRS will be used globally, even in the US

• Over time, all this will dramatically impact financial reporting for everyone, everywhere

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XBRL “Killer Applications”• Business person to business person information exchange

• Dynamic (flexible ) information exchange

• Easy to use (think TurboTax)

• Collaborative (integrated)

• Operating environment (think iTunes, iPod)

• Agility

• Radically tailorable tool, but within rigid framework

• One globally accepted logical model (think SQL)

• Building blocks

• Primitive types

• Hidden (from business users) technical rules enforcing syntax

• Business rules driven, exchangeable business rules

• Integrated internal audit process

• Supplemental internal and external audit capabilities

• Smart transactions

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How I Intend to Leverage XBRL

• I am a CPA, will use XBRL for things CPAs do

• Spent 15 years of doing things where XBRL could have helped; now I do have XBRL to use (almost there)

• When XBRL exists, then lots of change will occur– Financial reporting disclosure checklist automated with XBRL

Formulas

– Accounting Trends and Techniques, templates, using the SEC IDEA system

– XBRL “Killer Application” for closing the books

– XBRL internal and external audit schedules

• When there is change, there is opportunity!

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UBmatrix

• Leading provider of XBRL software– XBRL processing engine

– Enterprise Application Suite

– XBRL Database Adaptor (XBRL-DB)

– Report Builder

– Taxonomy Designer

• Customers include the largest XBRL production systems– Keane (SEC prime contractor)

– FDIC

– Banque de France

– Microfinance Information Exchange

• www.ubmatrix.com

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Where to Learn More

• XBRL International

– http://www.xbrl.org

• Charlie’s Blog

– http://xbrl.squarespace.com

• Learn More about XBRL

– http://www.ubmatrix.com/company/learn.htm

• Case Studies

– http://www.ubmatrix.com/casestudies

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More Information

• http://www.slideshare.net/CharlesHoffman

• http://xbrl.squarespace.com

• http://www.xbrlsite.com

• http://www.amazon.com/XBRL-Dummies-Charles-Hoffman/dp/0470499796/

• http://www.lulu.com/content/paperback-book/financial-reporting-using-xbrl-ifrs-and-us-gaap-edition/231882

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Questions?