XBRL Financial Reporting Supply Chain Architecture

Maciej Piechocki

XBRL Project Manager

XBRL Financial Reporting Supply Chain Architecture

Agenda

Introduction

Financial Reporting Domain

XBRL Financial Reporting Supply Chain Architecture

Conclusions

XBRL Financial Reporting Supply Chain Architecture

Introduction

Financial Reporting Supply Chain (FRSC)

Numerous participants

Sophisticated legal requirements

Inefficiencies in data exchange and data analysis

eXtensible Business Reporting Language (XBRL)

XBRL Financial Reporting Supply Chain Architecture

Agenda

Introduction

Financial Reporting Domain

XBRL Financial Reporting Supply Chain Architecture

Conclusions

XBRL Financial Reporting Supply Chain Architecture

Financial Reporting Domain Analysis

Accounting as “... the process of identifying, measuring and communicating information to permit judgements and decisions by user of the information” [AAA1966]

XBRL Financial Reporting Supply Chain Architecture

Reporting Scenarios Analysed

XBRL Financial Reporting Supply Chain Architecture

Results of the Analysis (Data View)

Reporting scenario

Auditors reporting

Group reporting

Capital markets

reporting

Supervisory reporting

Statutory reporting

Tax reporting

Credit Risk Reporting

Underlying legal

regulations

HGB, IFRS, US GAAP

HGB, IFRS, US GAAP

IFRS, US GAAP

IFRS, US GAAP

HGB, IFRS, US GAAP

HGB HGB, IFRS

Financial information

Financial statements,

management report,

financial report,

auditors’ report

Financial statements,

management report,

financial report

Financial report

Financial report

Financial report

Tax financial statements

Financial statements

XBRL Financial Reporting Supply Chain Architecture

Results of the Analysis (Other Views)Reporting scenario/

View

Auditors reporting

Group reporting

Capital markets reporting

Supervisory reporting

Statutory reporting

Tax reporting Credit Risk Reporting

Function Audit, archiving

Consolidation, analysis

Publication, analysis

Analysis Publication Analysis, archiving

Analysis

People Audited company,

auditor

Subsidiaries, parent entity

Public companies,

stock exchanges, investors

Public companies, supervisor

Companies, companies

register

Companies, tax offices

Borrowing companies, commercial

banks

Network Paper, Excel, Word, PDF

Excel, proprietary formats,

integrated systems

HTML, PDF, integrated

systems, XML, paper

Paper Paper, RTF, Word, Excel,

XBRL

Paper Paper

Time Directly after preparing

Directly after preparing or after audit

Three months after year end

Within 20 days after publishing

Within four months after

publishing

Within five months after year

end

On request and at the year

end

Motivation Assurance of financial

information

Providing a fair view of the

group

Providing investors with a fair view on the

public companies

Protection of the capital markets

participants

Providing general public with financial

information

Revealing malpractice and mistakes of tax

payers

Securing the borrowings

XBRL Financial Reporting Supply Chain Architecture

Agenda

Introduction

Financial Reporting Domain

XBRL Financial Reporting Supply Chain Architecture

Conclusions

XBRL Financial Reporting Supply Chain Architecture

Basic Defintions and Concepts

Model

Architecture

Models as a subset of the architecture according to the Zachman [Zach1999] and Sinz understanding [Sinz1997, 876-878]

Source Definition

Shaw and

Garlan

“Specification of the parts and connectors of the system and the rules for the

interactions of the parts using the connectors.” [ShGa1996]

Zachman Logical construct for controlling the interfaces and integration of system components.

[Zach1999]

Source Definition

Schütte A model is a result of the construction of the modeller, which represents the original

object for the model user by means of relevant modelling language and in a certain

point of time. [Schu1998, 59]

XBRL Financial Reporting Supply Chain Architecture

Zachman Architecture FrameworkSix views

DataFunctionNetworkPeopleTimeMotivation)

Five levels of abstraction

ContextualConceptualLogicalPhysicalOut-of-context)

[modified after STKB2006, 27]

XBRL Financial Reporting Supply Chain Architecture

Financial Reporting Supply Chain Architecture – Data View (Contextual)

Data componentsSource documentGeneral journalGeneral ledgerTrial balanceAdjusted trial balanceFinancial statementsTax code financial statementsAdditional informationAudited financial statementsFinancial report

Data structures

Chart of accounts

Accounting standards

Additional regulations

XBRL Financial Reporting Supply Chain Architecture

Financial Reporting Supply Chain Architecture – Data View (Conceptual)

XBRL Financial Reporting Supply Chain Architecture

XBRL Financial Reporting Supply Chain Architecture – Data View (Conceptual)

XBRL Financial Reporting Supply Chain Architecture

Financial Reporting Supply Chain Architecture – Function View (Contextual)

Function componentsRecording transactionJournalisingGL postingTrial balance preparationAdjusting trial balanceFinancial statements preparationAuditingFinancial report preparationReport deliveryReport consolidationReport publicationReport archivingReport analysis

XBRL Financial Reporting Supply Chain Architecture

Financial Reporting Supply Chain Architecture – Network View (Conceptual)

Fax

Post

Personal

Integrated systems

Internet

Paper

File

Text file

HTML

Spreadsheet

PDF

XML

XBRL

XBRL

uses

uses

uses

uses

uses

uses

uses

uses

uses

uses

uses

uses

XBRL Financial Reporting Supply Chain Architecture

XBRL Financial Reporting Supply Chain Architecture – Network View (Conceptual)

Integrated systems

Internet

File XBRL

uses

uses

uses is basis for

Text file

HTML

Spreadsheet

PDF

XBRL Financial Reporting Supply Chain Architecture

Financial Reporting Supply Chain Architecture – People View (Contextual)

XBRL Financial Reporting Supply Chain Architecture

Financial Reporting Supply Chain Architecture – Time View (Conceptual)

Capital markets reporting

Supervisoryreporting

Auditors reporting

Statutory reporting

Tax reporting

Credit risk reporting

Group reporting

Processes without time constraint

Processes without time constraint

01.01.2007 - 31.12.2007Financial year

XBRL Financial Reporting Supply Chain Architecture

XBRL Financial Reporting Supply Chain Architecture – Motivation View (Conceptual)

Provide assurance on financial reports

Provide fair view of the group

Provide fair view of the company

Provide general public with financial

information

Reveal malpractice and mistakes of tax

payers

Secure the borrowings

supports

supportssupports

supports

supports

supports

supports

Protect the capital market participants

supports

XBRL introduction in financial

reporting supply chain

supports

supports

supports

supports

supports

supports

XBRL Financial Reporting Supply Chain Architecture

Models Overview

Financial Reporting Supply Chain Architecture

XBRL Financial Reporting Supply Chain Architecture

Data (What)

Function

(How)

Network

(Where)

People

(Who)

Time

(When)

Motivation

(Why)

Objectives/ Scope

(Contextual) + + + + + +Enterprise Model

(Conceptual)

Data (What)

Function

(How)

Network

(Where) People (Who) Time (When)

Motivation

(Why)

Objectives/ Scope

(Contextual) + + +Ø Ø

+Enterprise Model

(Conceptual) Ø Ø

XBRL Financial Reporting Supply Chain Architecture

Agenda

Introduction

Financial Reporting Domain

XBRL Financial Reporting Supply Chain Architecture

Conclusions

XBRL Financial Reporting Supply Chain Architecture

Summary

XBRL Financial Reporting Supply Chain Architecture

Maciej Piechocki

XBRL Project Manager