XFRML

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XFRML

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Title: XFRML

1
XBRL An Introduction
Material from XBRL Steering Committee, Wayne
Harding and Rick Hayes, Ph.D. June 26, 2005
2

the XBRL Steering Committee
Zachary Coffin (KPMG Consulting)
Walter Hamscher (PricewaterhouseCoopers)
Mike Willis (PricewaterhouseCoopers)
Eric E. Cohen (Cohen Computer Consulting)
Wayne Harding (cpa2biz.com)
Louis Matherne (AICPA)
AND
Professor Rick S. Hayes (California State
University LA)

3
XBRL and the Emergence of e-Standards

E-Standards are fundamental to the web.
HTML is the standard that opened the internet to
business personal use and is acknowledged as
the webs first Big Step.
XML is having a similar Big Step impact in
using the web for commerce.
Over 200 XML-Based Specifications and Protocols
exist, including
RosettaNet computer company supply chain and
trading webs
cXML, CBL, eCo - e-Commerce Catalogue
interoperability
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.
WAP - Wireless Access Protocol
ButXBRL has no competitors.
XBRL uniquely is focused on reporting. In fact,
it can enhance all other XML standards, making
them more useable to a company and its finance
function.

4
Evolution of the Internet
Program the Web
Browse the Web
Web Services
Connect pre-Web
Web Pages
Automation
FTP, E-Mail,Gopher
Presentation
Connectivity
TCP/IP
HTML
XML
5
4920 useless results in a typical search (IBM
Fixed Assets)
6
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7
Today A Convoluted Information Supply Chain
Accounting Information System

Text
Investors
Corp.
Auditor
8
XBRL Multiple Outputs from a Single Specification
Printed Financials
Accounting System
Regulatory Filings
XBRL
Web Site
Tax Returns
Other Sources of Information
Bank Filings
9
XBRL Repurposing Continues
XBRL
10
What is XML (Extensible Markup Language)?

The next step after HTML toward the
Second-Generation Web
Established as a standard by the W3C (World Wide
Web Consortium)
Uses tags to give context and structure to the
content
Provides a common way for disparate systems to
exchange specific information (application
integration)
Separates information from style, so a single
source can be output to any format

11
Platform Independent

Windows
Unix
Macintosh
Mainframe

12
What Is XML Self-Describing

Example
ltDATEgtJuly 26, 1998lt/DATEgt
Describes the information, not the presentation.
Format neutral.

13
The Key Is Context

ltpurchase-ordergt    ltheader-informationgtltpo-numbe
rgt10932lt/po-numbergt    ltpo-order-dategt99/5/1lt/po-
order-dategtltpo-request-date/gt
ltordered-by-company-namegtCohen ComputerConsulting
lt/ordered-by-company-namegtcontent removed
here    lt/header-informationgt
ltline-itemsgt    ltline number"1"gt
ltquantity-orderedgt1024lt/quantity-orderedgt
ltdescription-of-itemgtInvoiceslt/description-of-item
gt    ltprice-total-for-linegt23.50lt/price-total-for
-linegt    lt/linegt    lt/line-itemsgt
ltfooter-information/gtlt/purchase-ordergt

14
What Is XML Expandable

Extensible
Whereas HTML is fixed
ltH1gt, ltBgt, ltPREgt
XML lets you roll your own
ltsugary-substancegt
ltShakespearean-charactergt
ltcash-equivalentgt
Example
ltPersongt ltNamegtWayne Hardinglt/Namegt
ltTitlegte-Radicallt/Titlegt ltAgegt38lt/Agegtlt/Persongt

15
What Is XML Tags are the key

lttypegtcash-equivalentslt/typegt ltlabelgtCash and
Securitieslt/labelgt ltamount period2000gt10000lt/a
mountgt ltamount period1999gt5000lt/amountgtlt/line
-itemgt

16
What Is XML Tags give context

Greater context to the information
Tree structure is natural in XML

ltbalance-sheetgt lttotal-assetsgt ltasset-type"cur
rent"gt ltamount-period2000"gt ltamountgt
91,000,000 lt/amountgt lt/amount-periodgt
lt/asset-typegt lt/total-assetsgt lt/balance-sheetgt
17
USERS

Externally,
Creditors and suppliers
Information intermediaries/aggregators
Investors, analysts and advisors
Internally,
Any analyst or decision-maker
reporting financial information
evaluating the results of past economic decisions
projecting the future financial position and
earnings of the business

18
XBRL Working Model Planned Specifications
19
Two layers of XBRL

XBRL Core Specifications (for multiple countries)
E.g., XBRL for Financial Statements
XBRL Industry-specific Specifications
E.g., XBRL for Financial Statements in Healthcare

20
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
CFOs still control disclosure, but now can use
XBRL to communicate with investors more
efficiently
No change to accounting standards
Easy to do
Makes investors happy

21
Example Cost Reduction

International Subsidiaries
Large multi-national corporation uses XBRL to
quickly analyze and publish the financial
statements of numerous subsidiaries
in different countries
with different languages
using different accounting standards and
practices
on different computer systems

22
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
CFOs still control disclosure, but now can use
XBRL to communicate with investors more
efficiently
No change to accounting standards
Easy to do
Makes investors happy

23
Example Efficient Decisions

Major mutual fund company feeds XBRL-ized
information to customers to differentiate their
funds as more objective 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 analytical criteria

24
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
CFOs still control disclosure, but now can use
XBRL to communicate with investors more
efficiently
No change to accounting standards
Easy to do
Makes investors happy

25
Example Credit

Loan Approval
Small Business provides Bank with their financial
information in XBRL and receives loan approval in
1 minute instead of 2 days
Credit Approval
Company approves customer credit request with
automated assessment processes facilitated by
XBRL
Line of Credit
Company provides capital markets with financial
information in XBRL and receives expedited line
of credit

26
Features of XBRL
What it is

A common data format for many software
applications and many types of reporting

27
Features of XBRL
What it is
US GAAP CIP Type Taxonomy (Fragment) Current
Assets () Cash and Cash Equivalents ()
Short term investments () Marketable
securities () Available for sale () Held
to Maturity () Trading () Receivables ()
Accounts Receivable-Trade net () Accounts
Receivable-Trade () Allowance for Bad Debts
(-) Receivables - Leasing () Notes
Receivables () Other Receivables ()
Contract receivables () Unbilled receivables
() Retention () Income tax () Finance
receivables ()

A common data format for many software
applications and many types of reporting
A shared data item taxonomy always grounded in
existing accounting standards

28
Features of XBRL
What it is

A common data format for many software
applications and many types of reporting
A shared data item vocabulary always grounded in
existing accounting standards
An extensible language that can preserve the
uniqueness of any companys reporting

NE MedCorp Type Taxonomy Net Income ()
Revenues () Patient Billings () Ambulatory
Patient Billings () Expenses (-) Staff
Salaries () Physician Salaries () Support
Staff Salaries ()
NE MedCorp Entity Taxonomy New England Medical
Corporation Massachusetts General Brigham and
Womens Hospital Longwood Medical Center
29
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30
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31
Technical BenefitsLeveraging Web and e-Commerce
Standards
Who benefits

Specification license will be free
Vendor neutrality of XML facilitates interface
with any third party systems
Enables and extends relational database
functionality for all business reporting data
Enhances XML-enabled wide area search

32
A fragment of XBRL Taxonomy
What it is
lt?xml version"1.0" encoding"utf-8"?gt ltschema
xmlnsxbrl"http//www.xbrl.org/core/metamodel"
xmlnshtml"http//www.w3.org/1999/xhtml"
targetNamespace"http//www.xbrl.org/us/us-gaap-ci
-2000-07- 31.xsd"gt ... ltelement
name"salesRevenueGross.revenueFromAffiliates"
type"monetary"gt ltannotationgt ltappinfogt ltxbrlroll
up to"salesRevenueNet.salesRevenueGross"
sense"add" order"3" /gt ltxbrllabel
xmllang"en"gtRevenue from Affiliateslt/xbrllabelgt
lt/appinfogt lt/annotationgt lt/elementgt ... lt/schemagt
33
A fragment of XBRL Instance

lt?xml version"1.0" encoding"utf-8"?gt
...
ltgroup typegrossProfit.salesRevenueNetgt
ltitem period"1999-05-31"gt8671lt/itemgt
ltitem period"1998-05-31"gt11358lt/itemgt
ltitem period"1997-05-31"gt14484lt/itemgt
lt/groupgt
ltgroup typeoperatingProfit.operatingExpensesgt
ltitem period"1999-05-31"gt5612lt/itemgt
ltitem period"1998-05-31"gt6487lt/itemgt
ltitem period"1997-05-31"gt8070lt/itemgt
lt/groupgt
ltgroup typegrossProfit.costOfGoodsAndServicesSo
ldgt
ltitem period"1999-05-31"gt1188lt/itemgt
ltitem period"1998-05-31"gt1085lt/itemgt
ltitem period"1997-05-31"gt1197lt/itemgt
...
lt/groupgt

34
Another fragment of XBRL
What it is
lt?xml version1.0?gt ... ltitem
typestatements.notesToFinancialStatements/gt lti
tem typenotesToFinancialStatements.significantAc
countingPoliciesNote/gt ltitem typesignificantAc
countingPoliciesNote.consolidationPolicy/gt ltitem
typeconsolidationPolicy.allWhollyOwnedSubsidiar
iesgtThe financial statements include the
accounts of SquigglyCo and its subsidiaries.
Significant inter-company transactions and
balances have been eliminated. Investments in
50 owned joint ventures are accounted for using
the equity method the Company's share of joint
ventures activities is reflected in other
expenses.lt/itemgt
35
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36
Navision implementation of XBRL
37
Roll-out of XBRL Financial Statement
Specifications
Financial Reporting Standards - Different
Jurisdictions
Today
US GAAP
Canadian GAAP
Australian GAAP
IAS
US GAAP
Canadian Acctg.
Australian Acct.
IAS
Commercial Industrial
Commercial Industrial
Commercial Industrial
Commercial Industrial
Commercial Industrial
Commercial Industrial
Commercial Industrial
Commercial Industrial
(CI) Companies
Companies
Companies
Companies
(CI) Companies
Companies
Companies
Companies
Canadian GAAP
US GAAP
Australian Acctg.
Canadian Acctg.
US GAAP
CI, extended to
C I, extended to

CI, extended to
C I, extended to

CI, extended to
Software Companies
Software Companies
Software Companies
Software Companies
Software Companies
US GAAP
US GAAP

C I, extended to

C I, extended to
Media Entertainment
Media Entertainment
US GAAP
US GAAP

Financial Services

Financial Services
Companies
Companies

Within FY00
38
XBRL Working Model Strategic Direction
Near Future
XML supporting
Today
G/L Level
XML Rendering
Information
of existing Acctg.
Exchange
Reporting Standards
Standards
Future
Far Future
XML supporting
XML supporting
Standardized
Emerging Business
Business Event
Performance
Vocabularies
Metrics
39
Additional Information