Dimensions and Formulas for Financial Professionals

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Dimensions and Formulas for Financial
Professionals

• Charles Hoffman, CPA UBmatrix

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Agenda

• Introductions
• Understanding XBRL Dimensions
• Overview of multidimensional analysis and XBRL
  Dimensions
• Dimensions impact on IFRS-GP taxonomy
• Dimensions and tuples discussion
• Understanding business rules (formulas)
• What are business rules
• Business rules in financial reporting
• Financial reporting in the future impact of
  business rules
• Questions and discussion

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Introductions

• Who am I
• Who are you?

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Understanding XBRL Dimensions
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Understanding XBRL Dimensions

• Brief explanation of multidimensional analysis
• Overview of XBRL Dimensions
• Using an Example
• Intentionally keeping it simple
• Adding more complexity
• Using a more complex example
• Common dimensional use cases
• Sales analysis (covered above)
• Sector breakdown
• Continuing, discontinued operations
• Excluding specific dimensions
• Implicit (typed) dimensions
• Dimensions impact on IFRS-GP taxonomy
• Dimensions and tuples discussion

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Brief Explanation of Multidimensional Analysis

• Overview of XBRL Dimensions
• Using an Example
• Intentionally keeping it simple

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Adding More Complexity

• Using a more complex example

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Common Dimensional Use Cases

• Sales analysis (covered above)
• Sector breakdown
• Continuing, discontinued operations
• Excluding specific dimensions
• Implicit (typed) dimensions

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Dimensions Impact on IFRS-GP Taxonomy

• Segmental breakdown

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Dimensions and Tuples Discussion

• When to use tuples, when to use dimensions

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Business Rules (Formulas)
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Understanding Business Rules (Formulas)

• What are business rules?
• Syntax
• Semantics
• Metadata
• Business Rules
• Business rules in financial reporting
• Financial reporting in the future impact of
  business rules

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What are Business Rules?

• Syntax
• Semantics
• Metadata
• Business rules

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Syntax

• Syntax is similar to the order of the words
• This is a syntax
• ltfoobar johndoegt345lt/foobargt
• foo, bar, john, doe, 345
• foobar john/doe/345/foobar
• XML parsers enforce syntax (not semantics)
• XML Schema enforces syntax (not semantics)

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Semantics

• Semantics is basically meaning
• Fundamentally, XBRL is a method of expressing
  semantics or semantic meaning
• This semantic meaning is expressed using XML
  syntax
• Examples of semantic meaning
• Concept name such as CashAndCashEquivalents
• Concept is a debit and is as of a point in
  time
• Its label is Cash and cash equivalents
• It contributes to the value of AssetsCurrent
• It shows up on the balance sheet and cash flow
  statement

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Metadata

• Metadata is data about data
• Consider an invoice
• Data on the invoice might include
• Invoice number of I-10001
• Invoice date of July 1, 2005
• Total invoice amount of 9000
• Metadata for the invoice might include
• The invoice number must start with the letter
  I, be followed by a dash, and must be 5 digest
  long
• The invoice MUST have an invoice number, an
  invoice date, at least one line item, and a total
• The sum of the line item amounts MUST equal the
  total invoice amount.

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Business Rules

• Business rules are a way of expressing semantic
  meaning
• Or a formal and implementable expression of some
  user requirement
• For example
• Assets MUST equal total liabilities plus total
  equity
• If property, plant and equipment exists on the
  balance sheet, then a PPE policy and a PPE
  disclosure MUST exist and they MUST contain
• May be definitional, express calculations,
  process oriented, regulations, instructional

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Business Rules in Financial Reporting

• In a taxonomy
• Movement analysis
• Supplement a taxonomy
• Ratios
• Disclosure checklist
• If this, then that

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Financial Reporting in the Future Impact of
Business Rules

• FDIC reduction of errors
• 18,000 errors ? 0 errors
• Applications of the future
• Financial creation driven by business rules
• Cash flow statement creation example
• Disclosure checklist example

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Questions and Discussion