Emerging Technologies XBRL

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Emerging Technologies - XBRL

• Sheryl Chisholm
• Kara Deon
• Nathan MacGillivray
• Catherine MacPherson

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Introduction

• Technical Overview of XBRL
• Applications and Impacts
• Expected Future Developments
• Case Bank of Japan

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What is XBRL?

• Conceived by Charles Hoffman in 1998
• Open Standard
• Language based on XML
• Provides meaning and context through coding
• The data is tagged to specific definitions within
  a taxonomy

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What does it do?

• Transforms unstructured text into a structured
  format that can be used by the computer
• Example
• Inventory
• Inventory consists of produce purchased for
  resale and supplies and are stated at the lower
  of cost or market using the FIFO method.
  Inventory as of December 31, 2006 and 2005
  amounted to 45,678 and 32, 109, respectively.

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Example cont

• ltinventoryComponents contextRefD-2006gtproduce
  purchased for resale and supplies
  lt/inventoryComponentsgt
• ltinventoryCostBasis contextRefD-2006gtlower of
  cost or marketlt/inventoryCostBasisgt
• ltvaluationMethod contextRefD-2006gtFIFOlt/valuati
  onMethodgt
• ltvalue2006 contextRefD-2006 unitRefUSD
  decimals0gt45678lt/value2006gt
• ltvalue2005 contextRefD-2006 unitRefUSD
  decimals0gt32109lt/value2005gt

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XBRL in plain English

• http//www.youtube.com/watch?v5F1E-2LkhW8feature
  PlayListpB00734614F4CF550index1

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Metadata
Data
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Applications and Impacts for Business

• Saves Costs and improves efficiency
• Extensible and flexible
• All participants in the financial information
  supply chain can benefit
• Data collection and reporting
• Can automate the process of data collection
• Internal reports, tax filings, financial
  statements, credit reports, etc.
• Eliminates time-consuming, error-prone processes

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Applications and Impacts for Business cont

• Data Consumption and Analysis
• Information received electronically to each
  business department, eliminating time-consuming
  efforts and information re-entry
• Software can immediately validate and highlight
  error
• Human effort can switch to higher, more
  value-added errors
• aspects of analysis, review and decision making
  processes

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Benefits from XBRL

• Cost Savings
• Preparing data in one form and generating many
  outputs
• Greater Speed and Reliability
• Consolidated results across divisions

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Benefits from XBRL cont

• Improve Accuracy
• Achieve quicker and more efficient decisions
• Free users from systems and software which are
  difficult and costly to replace
• More transparent and user-friendly information
• Faster Response times

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Who can Benefit?

• Any one that collects business data
• Governments, Regulators, Economic Agencies,
  Stock Exchanges and Financial Information
  Companies.
• Any one that produces or uses business data
• Accountants, Auditors, Company Managers,
  Investors and Creditors

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XBRL Who is Benefiting?
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The Future

• There are no current plans to change the core
  Specification of the technology
• Development of stand-alone, add-on modules to the
  Specification which deal with specific issues,
  such as taxonomy versioning

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The Future

• SEC is making it a reporting standard in the US
  by 2011
• Implementation on a global scale
• Standard for reporting financial information

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Case- Bank of Japan (BOJ)

• Oversees 560 major financial companies.
• Filed to BOJ through electronic data files
  prepared with their software.
• Data uploaded and verified at central database.
• Process- inefficient, time-consuming and
  error-prone

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Implementation

• Identified XBRL as a way of transforming its
  monitoring process.
• 2 goals
• (1) Efficiency and accuracy
• (2) Reduce effort
• Launched XBRL February 2006

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Results

• BOJ
• XBRL a success
• 500 institutions reporting with it.
• Reduced effort by 30-40
• Submitting Banks
• Improved submission process
• Validate reports and identify problems.

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