Of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪ XBRL eXtensible Business Reporting Language

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  • of Advancement Through Knowledge Interaction Information Influence Integrity XBRL eXtensible Business Reporting Language
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  • of Advancement Through Knowledge Interaction Information Influence Integrity FERF is the non-profit 501(c)(3) research affiliate of FEI. FERF researchers identify key financial issues and develop impartial, timely research reports for FEI members and non-members alike, in a variety of publication formats. The Foundation relies primarily on voluntary tax-deductible contributions from corporations, chapters, and individuals. Proceeds from purchases made through the bookstore on the FEI website benefit FERF. FERF Bookstore
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Finance & Information Technology News: Knowledge for Financial Executives A quarterly electronic newsletter covering IT issues that affect financial executives. FELIX (Financial Executives List Exchange) is a moderated, e-mail based discussion forum that allows FEI members to communicate with and learn from their peers.
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Electronically tagging data in financial and other reports, which facilitates retrieval and analysis of the data. Business information format standard UPC for Financial Statements Open Standard, No licensing fees What is eXtensible Business Reporting Language (XBRL)?
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Element or Item Specification Taxonomy=Financial dictionary How Does XBRL Work? Validation Standardization Calculation Cash = Currency + Deposits Formulas Cash 0 Contexts US $ FY2004 Budgeted Label cashCashEquivalentsAn dShortTermInvestments References GAAP I.2.(a) Instructions Ad Hoc disclosures Presentation Cash & Cash Equivalents XBR L Item Tagging Process creates an Instance Document that is readable by software
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  • of Advancement Through Knowledge Interaction Information Influence Integrity
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  • of Advancement Through Knowledge Interaction Information Influence Integrity XBRL International Development in 1998 Now 550 companies XBRL US Local jurisdiction of XBRL International Mission: Support implementation of XBRL in the United States through development of taxonomies for use by US public and private sectors Fast tracked by SEC Project to review XBRL benefits launched in 2004 FEI/FERF monitoring since approx. 2000 Brief History
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  • Interaction Information Influence Integrity FEI provides you with FEI has a reputation for being a widely-influential voice on behalf of financial executives before the U. S. SEC, FASB, PCAOB, IASB and the U. S. Congress. FEI Advocacy and Accounting Policy Initiatives Committee on Corporate Reporting Commented over the years on time, liability, auditor involvement, footnote tagging, taxonomy. Recommended to start filing with SEC Form 10-Q, to use Form 8-K, delayed submission All considered through comment process Represented on SEC Committee on improvements to financial reporting (CIFiR) on its interactive data subcommittee About have to adopt this year
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  • Interaction Information Influence Integrity FEI provides you with FEI has a reputation for being a widely-influential voice on behalf of financial executives before the U. S. SEC, FASB, PCAOB, IASB and the U. S. Congress. FEI Advocacy and Accounting Policy Initiatives Committee on Finance and Information Technology XBRL is an initiative of Technology & Reporting Subcommittee Commented on U.S. taxonomy Meetings with the XBRL Advisory Committee to the International Accounting Standards Board and with XBRL US All considered through comment process CFIT member Taylor Hawes is XBRL US board member CFIT technical advisor Mike Willis is XBRL International chair Collaborates with FERF on objective studies on XBRL
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Provide the SEC a new exhibit with their financial statements, including the footnotes and schedules to the financial statements, in interactive data format (XBRL) Will not replace traditional filing formats in ASCII or HTML Local jurisdiction of XBRL International Mission: Support implementation of XBRL in the United States through development of taxonomies for use by US public and private sectors Required on SEC forms and on corporate websites SEC forms: Annual 10-K, Quarterly 10-Q, foreign forms 20-F and 40-F, registration statements 3-year phase-in period based on size and status The SEC Rules
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Domestic and foreign large accelerated filers on US GAAP Public float above $5 billion Beginning with quarterly report containing financial statements for a fiscal period on or ending after June 15, 2009 All other domestic and foreign large accelerated filers on US GAAP Beginning with periodic report containing financial statements for a fiscal period on or ending after June 15, 2010 Remaining filers on US GAAP and foreign private issuers on IFRS Beginning with periodic report containing financial statements for a fiscal period on or ending after June 15, 2011 The SEC Rules
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Footnotes Tag as a block of text in year one of use Tag detailed qualitative disclosures in subsequent years (but each narrative not required) File exhibit at the same time as report except: For initial interactive data exhibits (can file within 30 days) For detailed footnote and schedules in year two If you dont file Will be deemed NOT current with Exchange Act reports Will NOT be deemed to have adequate current info for safe harbor But, once data is provided, will be deemed current again-will NOT lose timely filing status The SEC Rules
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Voluntary XBRL filing program ends for 50 companies Liability Interactive data (XBRL) file subject to federal securities laws if submitted within 24 months of when it was required Furnished, not filed for specified liability provisions Protected from liability for initial failure to comply as long as good faith effort and prompt corrections made The SEC Rules
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Voluntary filer program: initial XBRL-formatted 10-Q for 2nd quarter of 2007 Financial reporting team plan involving software, identification of filings and extensions 100 hours of training and preparation Since then Took 2 hours until filing of 10-Q for 2nd quarter of 2008 that was filed on the same day Implementation Cost=$10,000 for creation and submission of four quarterly and one annual set of XBRL financials over a year XBRL Filing Case Study: AGL Resources
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Tagging of First Form 8-K earnings release 80 hours of software training, establish process, perform tagging and filing Since then Process now less than 4 hours Overall time and cost reduced by over 20% XBRL Filing Case Study: United Technologies
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Beyond the Rules the XBRL potential
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Existing process Constant need to integrate number of different systems Common solution is enterprise resource planning (ERP) software application Furnished, not filed for specified liability provisions Protected from liability for initial failure to comply as long as good faith effort and prompt corrections made XBRL enables Disparate systems (G/L, transaction and sub-ledgers) to speak the same language Systems Integration
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Case Study: Wacoal ($1.4 billion Japanese apparel manufacturer) Worked with vendor Hitachi to connect 32 disparate systems Wacoal translated many document types, on a variety of platforms: mainframes, minicomputers, UNIX systems and PC servers Done in under 6 months Avoided approximately $100 million for a single instance ERP Systems Integration Business Systems Purchasing Sales Wages XBRL GL Auto Journalizing Add-ons Journalizing XBRL GL Conversion Engine GL AP AR XBRL GL Document s XBRL GL FinancialInformation Oracle E-Business Suite
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Existing process Still largely manual Wide range of proprietary software Multiple reviewers and edits of reports and excel spreadsheets Data Access, Assembly and Review By using data extraction tools, XBRL enables More effective use of existing report writer apps for financial statement tables, footnotes, MD&A Decreases extraction time and number of documents
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  • of Advancement Through Knowledge Interaction Information Influence Integrity Existing process Data validation tests prior to moving to data warehouse Errors passed back to data provider XBRL e

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