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eXtensible Business Reporting eXtensible Business Reporting
LanguageLanguage
Gent, April 2005
Enrique BonsónProfessor of Accounting, University of Huelva, SpainVicepresident of XBRL Spain
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Agenda
XBRL Taxonomies
XBRL Consortium
XML-XBRL
Digital reporting
(logotipo)
Digital reporting
White Book for Spanish Accountig Reform
Guidelines:
Codes of good practices
Universal exchange format: XBRL
Assurance services for digital information
(logotipo)
Codes of good practices
AECA 2002
Regulations:
Transparency law (july 2003)
Developed by:
Order of the Ministry of Economy ECO/3722/2003
Circular 1/2004 CNMV
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Agenda
XBRL Taxonomies
XBRL Cosortium
XML-XBRL
Digital reporting
Evolution of the Internet
TechnologyInn
ova
tio
n
FTP, E-Mail,Gopher
Web Pages
TCP/IP HTML
Connectivity
Presentation
Browse the Web
Connect pre-Web
Searching for the word “Mercury” on the Web can provide a wide variety of results—too many—such as:
Hg
Browsing the Web (Content—without Context)
•Chemical Industry •<SYMBOL>
•Auto Industry •<CAR-MODEL>
•Publishing or Mythology
•<GOD>
•Music Industry •<RECORD-LBL>
•Aerospace Industry •<PROGRAM>
•Astronomy •<PLANET>
“Content in Context” (Industry-specific)
Evolution of the Internet
TechnologyInn
ova
tio
n
FTP, E-Mail,Gopher
Web Pages
Web Services
TCP/IP HTML XML
Connectivity
Presentation
Automation
Browse the Web
Program the Web
Connect pre-Web
XML• XML stands for:• eXtensible • Markup • Language
• Universally accepted method of exchanging information
What Is XML?
• “XML is aplatform-independent,
self-describing,
expandable,
standard data exchange format”
XML is Platform Independent
• Windows• Unix• Macintosh• Mainframe
XML is Self-Describing
• Example:–<DATE>May 27, 2004</DATE>
• Describes the information, not the presentation
• Format neutral
XML <?xml version="1.0"?><ORDER> <SOLD-TO> <PERSON> <LASTNAME>Serra</LASTNAME> <FIRSTNAME>Roberto</FIRSTNAME> </PERSON> </SOLD-TO> <SOLD-ON>20040206</SOLD-ON> <ITEM> <PRICE>15.95</PRICE> <BOOK> <TITLE>El código da Vinci</TITLE> <AUTHOR>Brown, Dan</AUTHOR> </BOOK> </ITEM></ORDER>
ORDER
SOLD-TO
PERSON
FIRSTNAME
LASTNAME
SOLD-ON
ITEM
PRICE
TITLE
AUTHOR
BOOK
Roberto
Serra
Brown, Dan
El código da Vinci
15.95
20040206
XML is Extensible• Whereas HTML has a fixed set of tags
–<H1>, <B>, <PRE>
• XML lets you create your own tags–<sugary-substance>–<Shakespearean-character>–<cash-equivalent>
HTML vs. XML
• HTML• <html>• <body>• <p>Purchase Order, Stock Number 1002, 2,
100</p>• </body>• </html>
•XML
•<purchase_order>•<stock_number>1002</stock_number>• <price>100</price>• <number>2</number>•</purchase_order>
Who defines the tags?
• Tags are defined by industry consortiums
Each industry’s standardtags are commonly referred to as a taxonomy
XML & Data Exchange
Improves the way companies -- and applications -- share information Enjoys strong industry and vendor support
Provides a common way for disparate systems to exchange specific information (application integration)
Uses tags to give context and structure to the content
Published as a recommendation by the W3 Consort
XML Summary
Provides a means to separate data from style so a single source can be output for multiple uses
Separates data from logic of applications so that it can be reused for multiple purposes.
•Auto Industry •<CAR-MODEL>
Why Now ?Internet
XML Domain Expertise
HTML is the language that opened up the internet, enabling users to browse the web.
The next step to using the internet for business.
XBRL is a global e-business language for financial
information, reporting and analysis.
XBRL: eXtensible Business Reporting Language Markup language based on XML Created by XBRL.org For financial information interchange
among computers all over the world A global effort to build the “digital
business language” To be made by all the financial
information supply chain participants.
Http://www.xbrl.org
Five Years Ago …October 14, 1999
XBRL began with the idea of a single individual - Charlie Hoffman, from a
small CPA firm in a small town …
… and 13 Sponsoring Companies
XBRL is similar to the U.P.C SealXBRL is similar to the U.P.C Seal
“We showed that it could be done on a massive scale, that cooperation without antitrust implications was possible for the common good, and that business didn’t need the government to shove it in the right direction”
— Alan Haberman, Chairman, Symbol Standardization Subcommittee
“I think the industry has sold itself on a program that offers so little return that it simply won’t be worth the trouble and expense”
— A Midwest Chain Executive, 1975
99% of all packaged goods.
BUSINESS
XBRL Adds Reporting to E-CommerceInvestors
Aggregators
Regulators Creditors LendersTax Website
ERP G/L Packages CRM
•Orders•A/P•Delivery
Customers•Orders•A/R•Delivery
Suppliers
2-way2-wayTransaction Creation
Oneway
Oneway
XBRL Adds Reporting to E-Commerce
BUSINESS
Investors
Aggregators
Regulators Creditors LendersTax Website
Transaction Creation
ERP G/L Packages CRM
•Orders•A/P•Delivery
Customers•Orders•A/R•Delivery
2-way2-way
Suppliers
Oneway
Oneway
XBRL
BUSINESS REPORTING
(e-)CommerceOTHER XML INITIATIVES
XBRL is …Standards-based electronic
language for financial information, reporting and analysis Not chart of accounts Not accounting standards Does not require greater disclosure Does not require more frequent
reporting
XBRL Planned Specifications
ExternalFinancialReporting
BusinessOperations
InternalFinancialReporting
Investmentand Lending
AnalysisProcessesProcesses
ParticipantsParticipants
AuditorsTradingPartners
Investors
FinancialPublishersand Data
Aggregators
Regulators
XBRL for G/LJournal Entry
ReportingXBRL for
Regulatory Filings
XBRL for Financial Statements
XBRL for AuditSchedules
XBRL forTax Filings
XBRL for BusinessEvent Reporting
Software Vendors
ManagementAccountants
Companies
Roadmap for TaxonomiesFinancial Reporting Across Jurisdictions
Ind
ustry S
pecific R
eportin
g
U.S. CanadaIAS U.K. Germany Australia
US GAAPCommercial & Industrial
(C&I) Companies
Commercial & Industrial(C&I) Companies
US GAAPFinancial Services
CompaniesFinancial Services
Companies
US GAAPC & I, extended to
Software CompaniesC & I, extended toMutual Funds
US GAAPC & I, extended to
Media & Entertainment
C & I, extended toMedia & Entertainment
……
US GAAPC & I, extended to
Media & Entertainment
C & I, extended toAgriculture
…… …… …… …… …… ……
…… …… …… …… …… ……
…… …… …… …… …… ……
…… ……
…… …… …… …… ……
…… …… …… …… …………
………… …… ……
……
Illustrative Taxonomy Development Matrix
Done
Today
Within FYs
RegulatoryFilings
Web Site
Tax Return
Trade Filings
Printed Financials
Accounting System
Third Party Information
ExplanatoryText
XBRLDocuments
• Common interchange format and storage is good information management practice
– Reduces redundancies & discrepancies– Repeatable processes using tools– A platform for continuous reporting
RegulatoryFilings
Web Site
Tax Return
Trade Filings
Printed Financials
Accounting System
Third Party Information
ExplanatoryText
• Today’s external reporting processes– Rework and delay
– Ad hoc and non repeatable
– No path forward
Regulatory Filings
Market Data
Assurance
Company Financials
Public
Financials
Company Financials
Competitor/Industry Financials
Financial Information Supply Chain Financial Information Supply Chain Today’s External PositionToday’s External Position
Analyst Analytical Models
RegulatoryFilings
Market Data
Assurance
Company Financials
Public
Financials
Company Financials
Competitor/Industry Financials
Financial Supply Chain
Financial Information Intermediary Supply Chain Financial Information Intermediary Supply Chain External PositionExternal Position
Analytical Models
XBRL documents can
be: – Prepared efficiently– Exchanged reliably– Published more easily– Analyzed quickly– Retrieved by investors
simply
With XBRL?Mechanics More Time for Analysis => Better Analysis => Less Risk
Value-added Analysis and Decision-making? <10%
Best Practice: Time for Loan Processing—1.75 days
90% + time spent on Mechanics
Mechanics Analysis Mechanics Analysis Mechanics Analysis Mechanics Analysis
Or
Process more loans in the same amount of time
Benefits of XBRL
• Reduce cost of analyzing and reporting financial information
• Increase speed and efficiency of business decisions
• Enhance the distribution and access of existing financial statement information
• More readily exchanged
• Increase and enhance analysis
So when will this happen?A.Never.B.After I retire.C.Before I retire but too late for me to
have to worry about it.D.Sooner than I want to admit, but I
still have enough time to procrastinate.
E.Next five years.F. Next two to three years.
quiz
SEC’s Strategic Plan
Pg. 58: Accessibility and Usability of Registrant Filings:The SEC will explore the use of “tagged data” formats such as XBRL for financial disclosure, streamline forms and filing processes for registrants, and improve the internal processes and analytical tools used by staff to review filings.
SEC Public Announcement
The Commission will seek public comment on alternative methods and thecosts and benefits associated with tagged data. In addition, the Commissionthe Commissionwill consider a staff proposal to accept voluntary supplemental filings ofwill consider a staff proposal to accept voluntary supplemental filings offinancial data using eXtensible Business Reporting Language (XBRL).financial data using eXtensible Business Reporting Language (XBRL). Thisvoluntary program would enable the Commission staff to further investigatethe types of data tagging currently available in the marketplace. TheCommission may propose a rule this fall that would, if adopted, establish thevoluntary program beginning with the 2004 calendar year-end reportingseason.
SEC Proposed Rule September 27, 2004
• Proposed RuleProposed Rule to Establish Voluntary Program for Reporting Financial Information of Edgar Using XBRL.
– 30 day comment period
• Concept Release– 30 day comment period
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Agenda
Taxonomías XBRL
El consorcio XBRL
XML-XBRL
Los nuevos informes financieros
XBRL Taxonomies Equivalent to a dictionary They content all the elements to be
used within a XBRL document Global taxonomies: AR y GCD International taxonomies: IASCF-IFRS
y CRAS National-industry extensions National taxonomies: USA-GAAP,
German GAAP, Australian GAAP Industry extensions
AR TAXONOMY Report Information int-ar:ReportInformation
Title of Accountants Report int-ar:TitleReport
Report Type int-ar:ReportType
Addressee int-ar:Addressee
Statements Covered int-ar:StatementsCovered
Balance Sheet Date int-ar:BalanceSheetDate
Income Statement Period int-ar:IncomeStatementPeriod
Statement of Comprehensive Income Period
int-ar:StatementComprehensiveIncomePeriod
Statement of Stockholder's Equity Period int-ar:StatementStockholdersEquityPeriod
Cash Flows Statement Period int-ar:CashFlowsStatementPeriod
Reporting Method int-ar:ReportingMethod
Report Date int-ar:ReportDate
Dual Date int-ar:DualDate
Date of Dual Date int-ar:DateDualDate
Dual Date Note int-ar:DualDateNote
Accounting Standards Applied int-ar:AccountingStandardsApplied
Report Body int-ar:ReportBody
Introductory Paragraph int-ar:IntroductoryParagraph
Scope Paragraph int-ar:ScopeParagraph
Opinion Paragraph int-ar:OpinionParagraph
Explanatory Paragraph int-ar:ExplanatoryParagraph
GCD TAXONOMYGlobal Common Document int-gcd:GlobalCommonDocument
Entity Information int-gcd:EntityInformation
Parent Entity int-gcd:ParentEntity
Entity Names int-gcd:EntityNames
Entity Current Legal Name int-gcd:EntityCurrentLegalName
Name int-gcd:EntityCurrentLegalNameName
Description int-gcd:EntityCurrentLegalNameDescription
Entity Trading Name int-gcd:EntityTradingName
Entity Former Name int-gcd:EntityFormerName
Entity Business Description int-gcd:EntityBusinessDescription
Entity Identifier int-gcd:EntityIdentifier
Name int-gcd:EntityIdentifierName
Description int-gcd:EntityIdentifierDescription
Entity Form int-gcd:EntityForm
Entity Incorporation Information int-gcd:EntityIncorporationInformation
Entity Public Listing Information int-gcd:EntityPublicListingInformation
IASCF-IFRS TAXONOMY
• Based on the IAS-IFRS bound volume
• A digital version of IAS-IFRS• Primary Financial Statements• Explanatory Disclosures and
Accounting Policies
Taxonomía
CRAS
Taxonomía
DGI
Extensiónnacional
Extensiónsectorial
Extensiónnacionalsectorial
Extensiónpara unaempresa
DocumentoXBRL
InternationalFinancial Reporting
Standards(Taxonomía IFRS-GP)
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Agenda
XBRL Taxonomies
XBRL Consortium
XML-XBRL
Digital reporting
US
CA
SP
IE
UK
SE
DKFI
JP
NZ
KR
ZA
NL
IASB
BRCO
AR
DE
CH
RU
PT
IT
NO
SG
BE
FR
AU
IN
Estructura del consorcio XBRL
XBRL Facilitators
Jurisdicción Facilitador (es) Asociados
Alemania XBRL Deutschland e.V. 28
Australia Institute of Chartered Accountants in Australia (ICAA)CPA Australia
38.00097.000
Canadá Canadian Institute of Chartered Accountants (CICA) 68.000
EE UU American Institute of Certified Public Accountants (AICPA) 338.000
Holanda Electronic Commerce Platform (ECP.NL)Nederlands Instituut van Registeraccountants (NIVRA)
17313.000
IASB International Accounting Standards Board (IASB) n.d.
Japón Japanese Institute of Certified Public Accountants (JICPA) 17.000
Nueva Zelanda Institute of Chartered Accountants of New Zealand (ICANZ) 27.000
Reino Unido Institute of Chartered Accountants in England and Wales (ICAEW)
124.000
España Asociación Española de Contabilidad y Administración de Empresas (AECA)
4.000
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XBRL España
Founding members of XBRL Spain
Members of XBRL Spain
» Fujitsu
» Deloitte
» Ernst & Young
» Banco Popular
» Azertia
» BBVA
»
Web de XBRL España
In ConclusionIn Conclusion Adoption of XBRL will bring democratization of financial markets.
XBRL and other XML derivative languages are going to change information generation and distribution.
The information intermediation industry will have to change consequently bringing greater transparency to financial Information.
Enrique BonsónEnrique BonsónCatedrático de Economía Financiera y Contabilidad Vicepresidente de XBRL España
E-mail: [email protected]
Phone: 34 959 217892
Web: www.uhu.es/ijdar
Questions ????
