Xbrl

The Next Technology Revolution XML XBRL 1 Todays Objectives Overview of XML & XBRL Show you how this technology makes doing EBusiness Faster Cheaper Better coating 2 Lets move up the Value drawing string Transactions discipline study Knowledge Decisions Transactions Data schooling Knowledge Decisions Transactions Data Information Knowledge Decisions Transactions Data Information Knowledge Decisions 3 Evolution to sack Services Web Program the Web Browse the Web Web Services textbook Files Web Pages Innovation FTP, E-Mail, Gopher Connectivity TCP/IP HTML XML 4 Automation Presentation Technology XMLXML stands for eXtensible Markup Language Univers each(prenominal)y judge method of exchanging information 5 eXtensible Markup Language is a meta markup manner of speaking the World Wide Web Consortium (W3C) considers a universal modular for describing both integrated info and the behavior of applications that march the language. 6 What Is XML? XML is a platform-indepen dent, self-describing, expandable, pattern selective information supervene upon format 7 XML is Platform autarkic Windows Unix Macintosh Mainframe Linux 8 XML is Self-Describing Self Example July 26, 1998 Describes the information, not the instauration Format neutral XML is Expandable Whereas HTML has a fixed destiny of tags , , XML lets you create your own tags 10 How does it work? XML gives meaning to information through with(predicate) the use of tags Saad Hafizi COB Chairman, Novac 21 Caution.. Just because something is .. Does not mean it is immaculate? 11 The XML Puzzle XML Document Core Schema Transformation Tools fabrication Specific Vocabularies Company Specific Vocabulary 12 How XML plant How XML Works Improves the way companies and applications sh are information Enjoys strong perseverance and vendor moderate 13 What is XML? What XML is Not Not a religion. Not the solution to all world problems. Not a solution for all electronic avocation p roblems. Not a solution to all legal-technology problems. XML is a Tool XML is a Really Cool (Powerful) Tool Like all tools, XML potful be used wisely and unwisely. 14 Why is XML so Important? portable Vendor neutral Readable data format much malleable and easier to use than EDI All major software products are becoming XML enabled Defacto standards for data exchange Enabling new levels of interoper energy 15 XML Widely expected to overcome exist of publishing to the Net by as much as 50%. And by next year Gartner Group prediction 70% of all B2B transactions executed on the Web will be done using XML. 16 Who defines the tags? Tags are defined by industry consortiums Each industrys standard tags are commonly referred to as a taxonomy 17 Content in Context ( labor-specific) Auto Industry Chemical Industry Publishing or Mythology Music Industry Aerospace astronomy 18 Whos Building appraiseonomies? score Economics EDI Healthcare jural Publishing Science Advertising Architecture Communication E-Commerce financial redress News Retail Supply Chain 19 Automotive Banking discipline ERP HR Music Real Estate SoftwareDefines Tags 20 XBRL International is gaining competency XBRL activities occurring in get together States Canada Australia China & Hong Kong Japan Malaysia New Zealand Singapore mainland China Germany India Ireland Netherlands Nordic fusion (Denmark, Norway, Sweden) South Africa Spain Switzerland United Kingdom And on a global level through the International Accounting prototypes Council International compress Telecommunications Council International Standards Organization 21 XBRL International is gaining strength On a Global level through the International Accounting Standards Council International bid Telecommunications Council International Standards Organization On a Country Level United States Canada Australia China & Hong Kong Japan Malaysia New Zealand Singapore Taiwan Germany I ndia Ireland Netherlands Nordic Federation (Denmark, Norway, Sweden) South Africa Spain Switzerland United Kingdom 22 XBRL Impact The explosive process of the Internet is not only changing the way companies conduct their dividing line, it excessively promises to forever alter the way they communicate blood performance. CFO Magazine, February 2000 23 XBRL Documents XBRL for pecuniary literary arguments XBRL for General Ledger XBRL for Journal Entry inform XBRL for trust Reporting XBRL for Performance Press Releases XBRL for Risk Reporting XBRL for restrictive Filings XBRL for levy Filings XBRL for Assurance Schedules XBRL for Authoritative Literature XBRL for Business Reporting 24 Whos Embracing XML now? Software developers Using XML as the core technology for new products Database developers Building XML obligate into their products. Industry groups Deciding how information should be shared. Organizations Investigating how to tie their inter and intra bon ton processes together. 25 XML for monetary Reporting enables a dramatic improvement in the processing of fiscal reports XBRL documents can be Prepared efficiently Exchanged reliably Published more easily Analyzed quickly Retrieved by investors simply to enable smarter investments 26 Benefits XBRL is NOT a new accounting standards but enhances the distribution and usability of lively financial didactics information Enabler and an extension for relational database functionality for all financial disputation information 7 Problems XBRL Addresses Ineffective communication to investors Inefficient collecting and analysis Inefficient creation of financial statements 28 Why XBRL ? Enable business describe that leverages the Internet & XML Effective access and analysis of business reports Improve corporate communications with s backpackholders 29 Who benefits Process Benefits gravid Financial Reporting Cost Todays external reporting processes remake and delay Ad hoc and non repeatable No path forward Accounting System Explanatory text edition Third Party Information Printed Financials Regulatory FilingsWeb Site tax revenue Return Trade Filings 30 Who benefits Process Benefits Lowering Financial Reporting Cost Common interchange format and terminus is good information management practice Reduces redundancies & discrepancies Repeatable processes using tools A platform for continuous reporting Accounting System Explanatory Text Third Party Information XBRL Documents Printed Financials Regulatory Filings Web Site Tax Return Trade Filings 31 XBRL Interoperability & tenfold Uses G/L piece of land ERP XBRL Custom Developed Systems US generally accepted accounting principles Financial description In incline US GAAP Financial Statement In DutchUS GAAP Financial Statement to the Web US GAAP Financial Statement to Print XBRL former(a)(a) Sources of Information XBRL opposite Sources of Information other Sources of Information US GAAP Fi nancial Statement to Cell Phone XBRL Interoperability & Multiple Uses G/L Package ERP US GAAP Financial Statement Investors & book of factsors XBRL Custom Developed Systems EDGAR Filing XBRL Tax Filing XBRL Government separate Sources of Information Bank Filing XBRL News Agencies And Others Other Sources of Information Other Sources of Information Press Release Once Every Event is labeled in XBRL G/L Package ERPIAS Financial Statement in German US GAAP Financial Statement In English French Tax Filing Investors & Creditors XBRL Custom Developed Systems XBRL XBRL Government Other Sources of Information Canadian Banking Filing XBRL News Agencies And Others Other Sources of Information Other Sources of Information EDGAR 10k line item via Cell Phone XBRL Working mold Planned Specifications XBRL for G/L Journal Entry Reporting XBRL for Financial Statements XBRL for EDGAR Filings Processes Business Operations Internal Financial Reporting External Financial Reporting Investment and Lendi ng synopsisXBRL for Business Event Reporting XBRL for Tax Filings Financial Publishers and Data Aggregators Participants Companies Investors Trading Partners Management Accountants Auditors Regulators Software Vendors XBRL not a Transaction Protocol What it is XBRL is merely a format to serialize complex, structured financial data e. g. , statements, G/Ls. Therefore, it cannot replace OFX, ebXML, ANSI X. 12 Trans Set 821, OMG G/L Spec, upcoming message sets in those protocols could include XBRL tagged data if they need to send financial statements in the message body. XBRL provides a simulation and an AICPA approved vocabulary that can be extended to many other reporting frameworks. 36 XBRL not an accounting standard Means of communicating Current GAAP Current practice Flexible standard Future standards Future general practice 37 XBRL A Fragment of a Raw Data Raw Data in Spreadsheet Company coca plant Cola Co. Coca Cola Co. Financial Statement Balance sail Line Item Cu rrentAssets. Cashand CashEquivalents CurrentAssets. Cashand CashEquivalents Label CurrentAssets. Cashand CashEquivalents CurrentAssets.Cashand CashEquivalents twelvemonth 1999 Value 1611 Balance tacking 1998 1648 Same Raw Data in XML (XBRL) Format $1,611 $1,648 38 39 What software sees is the divers(prenominal)iator and drives benefits (here is an example) 40 Importance of Reporting What 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 soaked control bit empowering employees to make informed decisions more quickly. Year eat up Earnings Release Call August 10, 1999 John house lake herring CEO 41 Virtual Close TheBest Practice has, in my opinion, good as much impact on a companys future success or lack thereof as the wellpublished e-commerce area. Year End Earnings Release Call August 10, 1999 John Chambers Cisco CEO 42 XBRL Impact If Europe moves quickly to take up these standards, it could give them an attractive lead in the race to genial and comparative key data that would stimulate investor interest. It would undoubtedly spawn a plethora of research tools that would be useful to both private and victor investors. Investors Chronicle, August 9, 2000 43XBRL and the Emergence of eeStandards E-Standards are shopamental HTML is the standard that enabled the webs first Big Step XML is the webs next Big Step Over 200 XML-Based Specifications and Protocols exist, including RosettaNet computing machine company supply chain and trading webs OBI Open Buying on the Internet retail e-commerce FpML Financial Products (Derivatives, Swaps, FX) ACORD XML Insurance industry information exchange standards derived from EDI. UN/CEFAC = EBXML XBRL is uniquely focused on financial reporting 44 Standard . orgs (reporting vs e)Accounting / Auditing Reporting ASB IASC FASB IFAC SEC Territory Institutes e-Business W3C OASISUN/CEFAC T (ebxml) xml. org RosettaNet ACORD What nearly these? CPAs participate / lead in these The range of what is under development today HR CRM Horizontals (Infrastructure) there are others.. XBRL is uniquely focused on and so forth business reporting CHEMX RosettaNet ACORD FpML ANX Verticals (Industry Supply Chains) there are others. XBRL Adds Reporting to E-Commerce ETax angiotensin converting enzyme way Regulators Investors Creditors Lenders Website One way Aggregators BUSINESS ERP G/L Packages CRM 2-way SuppliersTransaction installation 2-way Orders A/P Delivery Orders A/R Delivery Customers 47 XBRL Adds Reporting to E-Commerce ETax One way Regulators Investors Creditors Lenders Website One way Aggregators BUSINESS G/L Packages ERP CRM BUSINESS REPORTING XBRL 2-way Suppliers Transaction Creation 2-way (e-)Commerce OTHER XML INITIATIVES Orders A/P Delivery Orders A/R Delivery Customers 48 XBRL What disclose XBRL Components XBRL / XML Specification (XBRL. org) Global architectu re/technology XBRL hierarchical vocabulary (jurisdiction/industry) mental lexicon of terms by jurisdiction/industry sector Style Sheets XBRL enabled tools (preparer) (market) 49 Key to our Success Market driven model Start simple, be inclusive Broad supply chain participation Members support XBRL Members do not compete on the framework Build structure & systems to support open community & market development 50 Steps in Technology Acceptance Acceptance Simplification/Tools Taxonomy Visionaries 51 Financial Institutionsand their Users Institutions midget BUSINESS provides FINANCIAL INSTITUTION with their information in XBRL and receives loan compliment in less than a day instead of two old ageor two weeks.Average Time for Loan Processing1. 75 eld Value-added Analysis and Decision-making? 90% + time spent on Mechanics slight Risk With = Better Or Mechanics Analysis Mechanics Analysis Mechanics Analysis Mechanics Analysis Process more loans in the same amount of time 52 Benefit s to Todays Users 1. Reduce cost of analyzing and reporting financial information 2. Increase zipper and efficiency of business decisions 3. put up the distribution and access of existing financial statement information 4. More readily exchanged 5. Increase and enhance analysis 53 Benefits 1.Reduce cost of analyzing and reporting financial information 2. Increase the zip and efficiency of business decisions 3. Enhance the distribution and usability of existing financial statement information 54 Example Cost Reduction International Subsidiaries Large multi-national corporation uses XBRL to quickly rollup, analyze and publish the financial statements of numerous subsidiaries in different countries with different languages using different GAAP on different computer systems 55 Benefits 1. Reduce cost of analyzing and reporting financial information 2.Increase the speed and efficiency of business decisions 3. Enhance the distribution and usability of existing financial s tatement information 56 Example Efficient Decisions Major mutual fund company feeds XBRL-ized information to customers to differentiate their funds as more accusatory and reliable investments An investor uses XBRL to compare the financials for a range of companies Belonging to different revenue levels Located within an industry sector Along multiple analytic criteria 57 Benefits 1. Reduce cost of analyzing and reporting financial information 2.Increase the speed and efficiency of business decisions 3. Enhance the distribution and usability of existing financial statement information 58 Loan Approval Example Credit puny Business provides Bank with their financial information in XBRL and receives loan laudation in 1 minute instead of 2 days Credit Approval Company approves customer credit request with automated judgment processes facilitated by XBRL Line of Credit Company provides capital markets with financial information in XBRL and receives expedited line of cred it 59 XML Shortcomings?Not a reversal for integration and middleware tools Lots of Hype, not a solution for everything There are many different standards among industries Standards still evolving But, you cant wait while the standards evolve. 60 XBRL Development & Adoption Final Thought.. limiting is not what it used to be.. Change has become a process its become a permanent part of the external environs 62 Summary FASTER BETTER CHEAPER Our profession will vex to follow technology and record business activity in an real time mode. 63 Concluding Remarks .. 64