Extensible Business Reporting Language (XBRL) Update

PwCPwC*connectedthinking

Extensible Business Reporting Language

(XBRL) Update

Walter Hamscher ([email protected])Executive Committee, XBRL InternationalConsultant to PricewaterhouseCoopers

PwC

Topics

Standards-based Reporting with XBRL• XBRL enabled software in the market

• XBRL implementations worldwide

• XBRL technology revealed

Value propositions• Enterprises of all types

• Investors and analysts

• Regulators and government agencies

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The business reportingsupply-chain

External

Financial

Reporting

BusinessOperations

InternalFinancialReporting

Investment,Lending,

andRegulation

Processes

Participants

AuditorsTradingPartners

InvestorsFinancial

Publishersand Data

Aggregators

Regulators

Software Vendors

ManagementAccountants

Companies

XBRLXBRLXBRL

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?<ias:sales numericContext="rg00brl">-3181000000.</ias:sales><ias:sales numericContext="rg00usd">-4613000.</ias:sales><ias:sales numericContext="rg01brl">-3583000000.</ias:sales><ias:sales numericContext="rg01usd">-5196000.</ias:sales><ias:returns numericContext="rg00brl">0.</ias:returns><ias:returns numericContext="rg00usd">0.</ias:returns><ias:profit numericContext="ins00usd">228000.</ias:profit><ias:profit numericContext="ins00brl">84000.</ias:profit><ias:profit numericContext="ins00brl">73000.</ias:profit>

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XBRL-enabled reporting software

Shipping• SAP mySAP financials• MBS Navision 3.70• Oracle 11i FSG• Creative Solutions• Cognos Financials• Hyperion Financials

Announced• Business Objects• PeopleSoft EFM

Custom • CaseWare Financials• Hitachi GEMPlanet

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XBRL-enabled software tools

BlastRadius XMetalDecisionSoft XBRL suiteEDGAR Online iMetricsFujitsu XWandIpedo XBRL AdapterRivet Software Dragon Tag Semansys ComposerSoftware AG XBRL toolsUBmatrix Automator

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No competing XML standard for business reporting in sight

AICPA

ICAA

ICAEW

NIVRAIDW

KICPAJICPA

ICPAS

CICA

FARIASB

FASB

ICANZ

KASB

ICAI

CSRC

SAICA

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Exchanges

NASDAQ

BOVESPA

ASXJSE

Shenzen

EuroNextKOSDAQ

Tokyo

SGX

Lux

Pilot LiveEval

TSX

OBX

LSECSE

DeutscheBörse

Shanghai

Taipei

KSE

SWX

NZSE

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CA UK

IE

AU

NO

JP

NZ

NLDE

CN

Tax Authorities

Study Committed

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US

UK

JPES

SE

CN

ZA AU

DK

Financial Regulators

Pilot Committed

BE

NL KR

TW

SG

DE

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XFRML

Ancient (Biased) History

Knowledge-based applications for financial domains don’t work until well-structured knowledge about business is easy to obtain

Crosby

Dot Com Boom

XML

1990 1991 1993 19991992 1994 1995 19981996 1997

EdgarScan Structured Retrieval…

WWW

AI Boom and Bust; Golden Age of

Knowledge Representation, etc.

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The business reporting supply-chain

External

Financial

Reporting

BusinessOperations


Investment,Lending,

andRegulation

Processes

Participants

AuditorsTradingPartners

InvestorsFinancial

Publishersand Data

Aggregators

Regulators

Software Vendors

ManagementAccountants

Companies

XBRLXBRLXBRL

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Strategic Framework


ExternalFinancial

Reporting

InternalBusiness

OperationsReporting

ExternalBusiness

PerformanceReporting

InternalInternalExternalExternal

FinancialFinancial

OperationalOperational

Today:XML Rendering

of existing GAAPReporting Standards

Future:XML supportingStandardized

Business EventVocabularies

Near Future:XML supporting

G/L LevelInformationExchangeStandards

Far Future:XML supporting

Emerging BusinessPerformance

Metrics

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XBRL Specification History

Increasing resources appliedIncreasingly thoroughHigher standards

XBRL 1.0

XBRL 2.0

XBRL 2.0aXFRML Tulip XBRL

2.1

10/99 6/00 12/01 12/031/0311/02

BostonMtg.

12/00

TampaMtg.

XMLSchema

5/01

ExternalDeadline

on 2.1XML

Linking

2000 2001 2002 2003 2004

FRTA1.0

FRIS1.0

LRR1.0

12/04

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XBRL 2.1 Documents

XBRL 2.1Specification2003-12-31Recommendation

XBRL 2.1ConformanceSuitePWD2003-12-31

XBRL 2.1Schemas2003-12-31

FRTA 1.0Candidate Recommendation 12003-12-31

XBRL 2.1 Spec PrimerInternal Working Draft2004-11-14

MustHave

Nice toHave

MustHave

Niceto

Have

Niceto

Have

XBRL 2.1 Instance Standards 1.0 PWD2004-11-14Nice to

Have

Link Role Registry (LRR) 1.0PWD2004-11-14

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Link Role Registry (LRR) 1.0CR12005-01-294

XBRL 2.1 Documents

XBRL 2.1Schemas2003-12-31

XBRL 2.1 Spec PrimerInternal Working Draft2004-11-14

MustHave

Niceto Have

MustHave

Niceto

Have

Niceto

Have

Nice toHave

XBRL 2.1CorrectedErrata

XBRL 2.1 CorrectedErrata

XBRL 2.1 Conformance SuiteCR12005-01-01

FRTA 1.0Candidate Recommendation 52005-01-29

XBRL 2.1 Instance Standards 1.0 PWD2004-11-14

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Extensibility Goals of XBRL as compared to other XML standardsInvoice• Parties

– Identifier– Address

• Line Item– Item

– Identifier– Description

– Quantities– Amounts– Discounts

• Taxes

• Delivery Terms

Depreciation Schedule• Line Item

– Asset name– Asset category*– Value brought forward**– Value limitation*– Period– Acquisition Date– Method*– Amount– Limitation*– Value carried forward**– Etc., etc., etc.

*Meaning varies according to accounting principles appropriate to purpose of information

** Name of otherwise identical concept varies by jurisdiction, not to mention native language

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Data (INSTANCE)

XBRL is the way that it is because business reporting concepts are extensible.

Taxonomy

Concept

Instance

Context

Context

XBRL Fundamentals

Meta Data (TAXONOMIES)Label and language

Reference

Definition

Presentation Hierarchy

Calculation HierarchyData types, normal

balanceFac

tFac

t

Fact

Fact

Fact

Concept

Concept

Concept

Unit

Unit

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ER Representation of XBRL

Data

(instance)

Meta Data

(taxonomy)

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XML Linking (XLink)

XLink is a W3C standard way to use XML to represent all kinds of relationships between XML elements no matter where they are.

XML Document 1 XML Document 2

Linkbase

<P id=“a”>

<P id=“b”>

<P id=“c”>

b isLike

c

b explain

s a

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XBRL uses XLink to represent the relationships between concept elements

<element id=“ast.inv”>

<element id=“ast.cur”>

Definition:more

general

<Label>Current Assets</Label>

label

<Label>Inventory</Label>

label

<bk> <ch>1</ch> <par>5</par> <ln>7</ln></bk>

reference

Presentation:below

<element id=“ast.wip”>

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XLink allows customization and explicit, modular changes to reusable material

<element id=“ast.inv”>

<element id=“ast.cur”>

Definition:more

general

label

label

<bk> <ch>1</ch> <par>5</par> <ln>7</ln></bk>

reference

Presentation:before

<element id=“ast.wip”>

<Label> </Label>

<Label> </Label>

存货

当前的财产

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ValueReportingTM -- illustrating multidimensional taxonomiesFictitious investment house

Proprietary analysis system

Researching one or more companies

A) preparing an internal briefing document on a company

B) preparing a sales forecast for a particular segment of that company

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Sample applicationsan investment house’s internal briefing document

Generates customised instance document format for investment house – in this case a briefing document for high level information about a company

SEGMENTAL REVENUES – BUSINESS AREAS

SEGMENTAL REVENUES – GEOGRAPHIC

3 months ago

2 months ago

1 month ago

CurrentStrong sellSellHoldBuyStrong buyNumber of brokers recommending:

BROKERS’ RECOMMENDATIONS

Yield

€ millionsMarket cap.

Share price

millionsIssued shares

P/E ratio

%Gearing

€ millionsRevenues

%EPS % GROWTH PEERS

%EPS % GROWTH COMPANY

€EPS20022003CURRENTFORECAST 2004FORECAST 2005UNITGAAP = IFRS

KEY FINANCIALS

STRATEGIC DIRECTION



3 months ago

2 months ago

1 month ago

CurrentStrong sellSellHoldBuyStrong buyNumber of brokers recommending:

BROKERS’ RECOMMENDATIONS

Yield

€ millionsMarket cap.

Share price

millionsIssued shares

P/E ratio

%Gearing

€ millionsRevenues

%EPS % GROWTH PEERS

%EPS % GROWTH COMPANY

€EPS20022003CURRENTFORECAST 2004FORECAST 2005UNITGAAP = IFRS

KEY FINANCIALS

STRATEGIC DIRECTION

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Sample applications investment house’s internal briefing document

Data in instance document automatically generated from company sources.Clearly indicates what is reported.

STRATEGIC DIRECTION Our mission Our mission is to be the soft drinks company of choice and to achieve above average market growth, by focusing on the healthy beverages sector, through growth in our existing businesses and strategic acquisition. We seek to increase the attractiveness and availability of our organic juices to meet our consumers ever demanding needs for a healthy and convenient lifestyle. KEY FINANCIALS GAAP = IFRS UNIT FORECAST 2005 FORECAST 2004 CURRENT 2003 2002 EPS € 2.28 2.05 EPS % GROWTH COMPANY

% 11.22% 10.8%

EPS % GROWTH PEERS

% 28.45 25.6

Revenues € millions 352.2 349.6 Gearing % 3.79% 3.1% P/E ratio Issued shares millions 12.5 12.5

Share price 40.15 41.45 Market cap. € millions 501.9 518.1

Yield BROKERS’ RECOMMENDATIONS

Number of brokers recommending: Strong buy Buy Hold Sell Strong sell Current

1 month ago 2 months ago 3 months ago



Segm ental revenue by business area 2003

24%

26%

50%

Organic Juices

Bottled Water

Health Drinks

Segmental revenue by business area 2002

23%

29%

48%Organic Juices

Bottled Water

Health Drinks

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Sample applications investment house’s internal briefing document

Data sourced from company documents (annual report etc)

Data sourced from analyst reports, industry sources, etc

Data in instance document automatically generated from analyst sources.

STRATEGIC DIRECTION Our mission Our mission is to be the soft drinks company of choice and to achieve above average market growth, by focusing on the healthy beverages sector, through growth in our existing businesses and strategic acquisition. We seek to increase the attractiveness and availability of our organic juices to meet our consumers ever demanding needs for a healthy and convenient lifestyle. KEY FINANCIALS GAAP = IFRS UNIT FORECAST 2005 FORECAST 2004 CURRENT 2003 2002 EPS € 2.61 2.35 2.28 2.05 EPS % GROWTH COMPANY

% 11.1% 2.6% 11.22% 10.8%

EPS % GROWTH PEERS

% 25.5 30.12 28.45 25.6

Revenues € millions 387.8 363.2 352.2 349.6 Gearing % 3.79% 3.1% P/E ratio Issued shares millions 12.5 12.5

Share price 40.15 41.45 Market cap. € millions 501.9 518.1 Yield BROKERS’ RECOMMENDATIONS

Number of brokers recommending: Strong buy Buy Hold Sell Strong sell Current 5 8 10 3 2

1 month ago 5 7 11 3 2 2 months ago 4 6 12 3 2 3 months ago 3 7 12 5 2


SEGMENTAL REVENUES – BUSINESS AREAS Segm ental revenue by business area 2003

24%

26%

50%

Organic Juices

Bottled Water

Health Drinks

Segmental revenue by business area 2002

23%

29%

48%Organic Juices

Bottled Water

Health Drinks

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Sample applicationsinvestor’s revenues forecast for a company

Instance document generated of third step in revenues forecast process – historical revenue data for particular region by distribution channel

Investment user then inputs assumptions about the future growth of revenues and could be prompted to consider issues such as upcoming product launches.

HOLMES WATSON INVESTMENTS - BEVERAGES SECTOR

HISTORIC - ORGANIC JUICES GERMANY

Distribution channel Revenues Revenues Growth2002 2003 2002-2003

€m €m €m

Gyms/Leisure clubs 13.2 13.4 1.5%Health food shops 27.5 28.3 2.9%Convenience stores 2.25 9.4 317.8%

Organic Juices Germany 42.95 51.1 19.0%

Input forecast assumptions

Gyms/Leisure clubs -10% each yearHealth food shops +10% each yearConvenience stores +20% each yearOther flat

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ValueReportingLeveraging XBRL taxonomiesShared taxonomies, used by both company and investor (producer and consumer)

Non-GAAP data (broker recommendations)

Single instance, multiple renderings

Multidimensional information hierarchies

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Multidimensional Reporting Taxonomies

Geography• Common definitions

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Multidimensional Reporting Taxonomies

Geography• Common definitions

Industry• PwC Categories

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Multidimensional Reporting TaxonomiesGeography• Common definitions

Industry• PwC Categories

Segment• Company specific

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Sample Fact and Context(dimension member in a segment, not tuple)

<ifrs-gp:RevenueByFunction decimals="-3" contextRef="organic02p" unitRef="eur">81650000</ifrs-gp:RevenueByFunction>

<context id="organicjuices02p"> <entity> <identifier scheme="dns:domain">knz.com</identifier> <segment> <dim:member>knz-prd:OrganicJuices</dim:member> </segment> </entity> <period> <startDate>2002-01-01</startDate> <endDate>2002-12-31</endDate> </period></context>

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Sample Fact and Context(segmental and geographic dimensions)

<ifrs-gp:RevenueByFunction decimals="-3" contextRef="organicjuicesgermany02p" unitRef="eur">3220000</ifrs-gp:RevenueByFunction>

<context id="organicjuicesgermany02p"> <entity> <identifier scheme="dns:domain">knz.com</identifier> <segment> <dim:member>knz-prd:OrganicJuices</dim:member> <dim:member>geo:Germany</dim:member> </segment> </entity> <period> <startDate>2002-01-01</startDate> <endDate>2002-12-31</endDate> </period></context>

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<link:schemaRef xlink:type="simple" xlink:arcrole="http://www.w3.org/1999/xlink/properties/linkbase" xlink:href="hwi.xsd"/> <baf:StrategicDirection contextRef="knz03p">Our mission is to be the soft drinks company of choice and to achieve above average market growth, by focusing on the healthy beverages sector, through growth in our existing businesses and strategic acquisition. We seek to increase the attractiveness and availability of our organic juices to meet our consumers ever demanding needs for a healthy and convenient lifestyle.</baf:StrategicDirection> <ifrs-gp:BasicEarningsLossPerShare decimals="2" contextRef="knz03p" unitRef="eurPerShr">2.28</ifrs-gp:BasicEarningsLossPerShare> <ifrs-gp:BasicEarningsLossPerShare decimals="2" contextRef="knz02p" unitRef="eurPerShr">2.05</ifrs-gp:BasicEarningsLossPerShare> <hwi:EPSgrowth decimals="4" contextRef="knz03p" unitRef="pure">.1122</hwi:EPSgrowth> <hwi:EPSgrowth decimals="3" contextRef="knz02p" unitRef="pure">.108</hwi:EPSgrowth> <hwi:EPSgrowthPeers decimals="4" contextRef="knz03p" unitRef="pure">.2845</hwi:EPSgrowthPeers> <hwi:EPSgrowthPeers decimals="3" contextRef="knz02p" unitRef="pure">.256</hwi:EPSgrowthPeers> <ifrs-gp:RevenueTotalByNature decimals="-5" contextRef="knz03p" unitRef="eur">352200000</ifrs-gp:RevenueTotalByNature> <ifrs-gp:RevenueTotalByNature decimals="-5" contextRef="knz02p" unitRef="eur">349600000</ifrs-gp:RevenueTotalByNature> <hwi:Gearing decimals="4" contextRef="knz03e" unitRef="pure">.0379</hwi:Gearing> <hwi:Gearing decimals="3" contextRef="knz02e" unitRef="pure">.031</hwi:Gearing>

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Taxonomies in PlayXBRL Int IASB PwC (KNZ) (HWI)

Dimensions

Geography

IFRS-GP

ValueReportingBAF

KNZProducts

KNZ

HolmesWatson

HWI

import

import

import

import

import

import

import

Industry

import

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BAF (PwC)

HWI (Analyst)IFRS

HWI (Analyst)IFRS

HWI (Analyst)IFRS

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KNZ (Company)

HWI

HWI

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Microsoft 2Q FY05 Financials

GAAP-CI

FIN

CHN

…

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Information Value and Cost

Value = Reduction of uncertainty times $$$ at risk

Cost = Produce + Structure + Distribute + Consume

• The XBRL return on investment (ROI) is that it puts information in the hands of users at lower costs (both production and consumption)

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Benefits of XBRL for Preparers

Lower cost of producing information

More timely, accurate, data for decisions

Enhanced analytical capabilities

Better control environment

Tell your own story (precise & clear)

Accelerate adoption of reporting models

Enhanced functionality

Ease of use

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Benefits of XBRL for Consumers

Lower cost of consuming information

Faster access to information

More timely, accurate, data for decisions

Enhanced analytical capabilities

Enhanced functionality

More useful access to information

Ease of access to definitions enhance comparability

Facilitates language translations

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Consolidated Profit and Loss Account for the year ended September 30, 2001

Blah blah blah

Blah blah blah blah

Blah blah blah

Blah blah blah blah blah

Profit 925 448

Blah blah blah

Earnings per share 30.6 11.0

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XBRL in a large enterprise

External

Financial

Reporting

Supplier and

Customer Financial Reporting

InternalFinanci

alReporti

ng

Markets and

Regulators

Portfolio Financial

s

Counterparty

Financials

Tax Filing

s

Reg. Repor

ts

Joint Venture Financia

ls

Management

Reports

Divisional

Financials

Business Unit

Financials

Credit Assessment

Partnership

Financials

Debtor Financial

s

Annual and

Quarterly

Financials

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XBRL in a large enterprise

Management

Reports

Portfolio Financial

s

External

Reporting

Supplier and

Customer Financial Reporting

InternalReporti

ng

Markets and

Regulators

Credit Assessment

Counterparty

FinancialsTax

Filings

Joint Venture Financia

ls

Partnership

Financials

Call Repor

ts

Divisional

Financials

Debtor Financial

s

Business Unit

Financials

XBRL XBRL XBRL XBRL

GroupAnnual

and Quarterl

y Financial

s

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Home Worksheet

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Web Service Data

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Local/Web Service Data

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Manage Columns

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Charts/Graphs

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Financial Comparison

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Ratios

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MetaPraxis’ Empower 2000

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MetaPraxis’ EmPower 2000Variance Analysis

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MetaPraxis’ EmPower 2000Profit Bridge

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MetaPraxis’ EmPower 2000Profit driver analysis

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E-filing cost reduction at the US FFIEC

Today

8900 Banks

FDIC OCC FRB OTS NCUA

Future

8900 Banks

FDIC OCC FRB OTS NCUA

FFIEC

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Data is SharedDeposit

Insurance--- Statistics ----- Comptroller --

Typical XBRL Regulator Use

Bank Performance Data

Meta DataQuarterly

ReportXBRL Document

Reporting Institution Software

•Import Schedule•Enter Data•Validate Data•Send Data

XBRLTaxonom

y Software•Create

•Update•Debug

Schedule or FormXBRL Taxonomy

•Item Types•Labels, Definitions, etc.

•Instructions

XBRL Rule Base

XBRL Version Management

•Validations, Quality tests•Value-added Calculations

•Taxonomy changes•Rule changes

SoftwareCan be any

vendor product, or provided by

regulator

Result:AdaptabilityEfficiency

Faster cycle times

Reporting Institution Regulator

SoftwareToday four different

vendors with interoperabl

e tools

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The Integrated Regulatory Return… will combine all of the data we request from firms into one return, helping us monitor them more effectively and reducing costs for firms and us.

…we have decided to use the Extensible Business Reporting Language (XBRL) to collect, validate and distribute the data in the Integrated Regulatory Return.

Fromhttp://www.fsa.uk.gov/regulatory_reporting

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[T]he time is ripe for regulators to (i) examine, together with the banking

industry if -and to what extent- they wish to promote the use of XBRL to cooperate across borders and

(ii)take advantage of such an opportunity to re-assess not just the broad principles associated with regulation but also the specific definitions of regulatory reporting concepts.

Fromhttp://www.fbe.be/pdf/postFSAPfinal.pdf

PwCPwC*connectedthinking

Extensible Business Reporting Language

(XBRL) Update

Walter Hamscher ([email protected])Executive Committee, XBRL InternationalConsultant to PricewaterhouseCoopers