Download ppt - “Extensible Business Reporting Language”: An Executive Overview Taipei, Taiwan – 4 August 2000 Zachary Coffin, XBRL Liaison Chair [email protected] XBRL

“Extensible Business Reporting Language”:An Executive Overview

Taipei, Taiwan – 4 August 2000

Zachary Coffin, XBRL Liaison [email protected]

XBRL

Beginning Summer 2000Members:

Moody'sDowJonesPeopleSoftWells FargoCapital PrintingMerrill Corp.BDO Seidman10 University Consortium (Spain)JetformFDIC (U.S.)DFAS (U.S. Dept. of Defense)Farm Credit Administration (U.S.)Mobley MatrixeCreditDatatopiaNetLedger

Liaisons:FEI (U.S. Financial Executives

Institute - Committee on Corporate Reporting)

FASB (U.S. Financial Accounting Standards Board)

FASAB (U.S. Federal Accounting Standards Advisory Board)

Association of Government Accountants (U.S.)

AIMR (Assn. of Investment Management Researchers)

EDIFICAS (EDI Financial Reporting Europe)

FIRM Council (U.S. Federal Information and Records Managers)

ANSI X12 XML Task Group (the X12 Financial SubCommittee-EDI Standards)

International Press Telecommunications Council

XBRL Germany – September 2000In addition to current Steering Committee members:

Deutche Bundesbank Dresdner Bank Deutche Bank HypoVereinsbank Postbank Rating Services AG Hermes Kreditversicherungs AG Haarman, Hemmelrath und Partner Bundesverband deutscher Banken Deutsche Verkehrsbank Savings & Loan Information Center Syseca Management Cons. DATEV

XBRL Macro Impact

"The explosive growth of the Internet is not only changing the way companies

conduct their business,it also promises to forever alter the way

they communicate business performance.”

- CFO Magazine, February 2000

XBRL: Extensible Business Reporting Language

HTML is the language that opened up the internet.XML is the next step to using the internet for business.

– E.g., RosettaNet – for the computer manufacturers supply chain– E.g., IMS Global Project – for the e-learning supply chain

XBRL is a unique type of XML. XBRL enables financial reporting to be processed in internet time.

XBRL is a universal e-business languagefor financial information, reporting and analysis.

Financial Reporting Supply Chain

XBRL documents can be—– Analyzed and Prepared by Finance more effectively– Audited more efficiently– Exchanged with Trading Partners reliably– Published effortlessly– Reviewed by Analysts quickly– Retrieved by Investors and Creditors simply

XBRL Model: Financial Reporting Supply Chain

ExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

Investmentand Lending

AnalysisProcessesProcesses

ParticipantsParticipants

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

Software Vendors

ManagementAccountants

Companies

XBRL Working Model: Planned Specifications

ExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

Investmentand Lending

AnalysisProcessesProcesses

ParticipantsParticipants

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

XBRL for G/LJournal Entry

ReportingXBRL for

Regulatory Filings

TodayXBRL for Financial

Statements

XBRL for AuditSchedules

XBRL forTax Filings

XBRL for BusinessEvent Reporting

Software Vendors

ManagementAccountants

Companies

XBRL: Interoperability & Multiple Outputs

Other Sources of Information

CellPhones

Intranet /Internet /Extranet

Braille

Audio

Printed Financials

XBRL XBRL

Creditors

Other Parties

Investors


Accounting System(s)

XBRL




XBRL

XBRL: Interoperability & Multiple Outputs


RegulatoryFilings

FinancialStatements

Tax Returns

Bank Filings

CreditReporting

XBRL XBRL

Creditors

Other Parties

Investors



XBRL




XBRL

XBRL for Industries

Financial Institutions

Information Providers

E-Government

Financial Institutions—and their Users

SMALL BUSINESS provides FINANCIAL INSTITUTION with their information in XBRL and receives loan approval in less than a day instead of two days—or two weeks.

MUTUAL FUND COMPANY feeds XBRL information to its CUSTOMERS to reduce its costs and differentiate their funds as more objective and reliable investments

An INSURANCE COMPANY uses XBRL information to efficiently assess the risk of a company or range of companies—– Belonging to different revenue levels– Located within an industry sector– Matched to historical patterns– Along multiple analytical criteria

Information Providers & EnablersFINANCIAL WEBSITE collects XBRL information and publishes to its

online portal– Intelligent agents capture information– Information processed faster, better, and cheaper– Style sheets assemble data for presentation

MAJOR NEWS ORGANIZATION collects XBRL information and syndicates that with its analysis to other information providers—– Maps information to its databases of historical performance– Builds more powerful analysis tools and presentations

PUBLISHING & SOFTWARE COMPANIES publish XBRL information in e-books for consumers.– Information refreshed on a regular basis– Assembles data for comparative purposes– Dynamic linking to related topics

XBRL for E-Government

HEALTHCARE COMPANY provides its Medical reporting in XBRL to the DEPT. OF HEALTH & HUMAN SERVICES and receives its payments on a more timely basis.

BANK provides call reports in XBRL to BANK REGULATORS and lessens its own costs for reporting.

REAL ESTATE COMPANY provides its financial reporting in XBRL to AGENCY and receives approval for housing and urban development.

FINANCIAL INSTITUTION provides reporting in XBRL to the FARM CREDIT AGENCY and receives lines of credit for FARMERS.

ENTERPRISE

E-Commerce is a Interactive Supply Chain

•Orders•A/P•Delivery

Customers•Orders•A/R•Delivery

Suppliers

2-way2-wayTransaction Creation

ENTERPRISE

XBRL Adds Reporting to E-Commerce

Investors

Aggregators

Regulators Creditors LendersTax Website

ERP G/L Packages CRM



Suppliers

2-way2-wayTransaction Creation

Oneway

Oneway

XBRL Adds Reporting to E-Commerce

ENTERPRISE

Investors

Aggregators

Regulators Creditors LendersTax Website

Transaction Creation

ERP G/L Packages CRM



2-way2-way

Suppliers

Oneway

Oneway

XBRL

BUSINESS REPORTING

(e-)CommerceOTHER XML INITIATIVES

Searching for the word “Mercury” on the Web can provide search results such as--

Hg

Content—without Context

Astronomy

Aerospace Industry

Music Industry

Publishing or Mythology

Chemical Industry

Auto Industry

<RECORD-LABEL>

<PROGRAM>

<PLANET>

<GOD>

<SYMBOL>

<CAR-MODEL>

“Content in Context” (Industry-specific)

4920 useless results in a typical search (“IBM Fixed Assets”)

XBRL Taxonomies: Development and Roll-out

US GAAPCommercial & Industrial

(C&I) Companies

US GAAPCommercial & Industrial

(C&I) Companies

Canadian GAAPCommercial & Industrial

Companies

Taiwan GAAPCommercial & Industrial

Companies

Australian GAAPCommercial & Industrial

Companies

IAS GAAPCommercial & Industrial

Companies

IASCommercial & Industrial

Companies

U.K.Commercial & Industrial

Companies

……

US GAAPFinancial Services

Companies

US GAAP

Canadian GAAPC&I, extended to

Software Companies

Taiwan GAAPC&I, extended to

Software Companies

US GAAPC & I, extended to

Software Companies


Software Companies


Media & Entertainment

US GAAP

…… ……

…… ……

…… …… ……

…… …… …………

Financial reporting standards in different jurisdictions

Industryspecificfinancialreportingstandards

Banking Sector

Automotive

Financial Reporting Standards - Different Jurisdictions

Sector Specific

Today

Within FY00

XBRL: Future UsesXBRL for Financial StatementsXBRL for General LedgerXBRL for Journal Entry ReportingXBRL for Credit ReportingXBRL for Performance Press ReleasesXBRL for Risk ReportingXBRL for Regulatory FilingsXBRL for Tax FilingsXBRL for Assurance SchedulesXBRL for Authoritative LiteratureXBRL for “Business” Reporting

Importance of Reporting

”John Chambers Cisco CEO

Year End Earnings Release Call August 10, 1999

“…[W]hat excites the CEO is the ability to know what the business is doing at any given point in time, react quickly

to market shifts and competitive threats and remain in tight control

while empowering employees to make informed decisions more quickly.

Additional InformationUseful References

– CFO Magazines article, “How the Web was Won” about Online IR• http://www.cfonet.com/html/Articles/CFO/2000/00FEhowt.html

– Scientific American article, “XML and the Second-Generation Web”• http://www.sciam.com/1999/0599issue/0599bosak.html

– FASB’s Electronic Distribution of Business Reporting Information• http://www.rutgers.edu/Accounting/raw/fasb

– IASC’s Business Reporting on the Internet• http://www.iasc.org.uk/frame/cen3_26.htm

– XBRL Website• http://www.XBRL.org

For additional information, please contact– Visit the XBRL website

• http://www.XBRL.org

and/or feel free to—

– Contact Zachary Coffin, XBRL Liaison Chair, [email protected]• (Download “Digital Reporting: Why Every Company is a Digital Media Company”)

– http://www.KPMGConsulting.com/DMI

– Contact Elmer Huh, XBRL Int’l Domain Chair, [email protected]