Taxonomy Review Jennifer S. Moriarty, FASB Yossef Newman, Deloitte Sharyn Kohen, Ernst & Young

Taxonomy Review  Evolution of a Taxonomy  Elements to Review  Review Techniques  Review Enablers  Action Items

Evolution of a Taxonomy  US GAAP and International Financial Reporting Standards (IFRS) taxonomies created using:  Accounting and Reporting standards  Accounting enablers (e.g. checklists)  Financial statements  XBRL tools  Participants:  Trade organizations  Public accounting firms  Regulators

Evolution of a Taxonomy (Cont.)  Taxonomy Process  Creators  Domain groups  Internal review  Public review

Importance of Public Feedback  Consortium process: Public review  Accuracy of taxonomies  Area experts  Meet the needs of the ultimate users of taxonomies  Continuous public feedback is integral to effective taxonomy development  Public comments will be considered and incorporated where appropriate

Types of Reviews  Domain  Industry  Accounting  Financial reporting  Technology  Software validation  Conformity with FRTA

Where do you find the taxonomies? XBRL website Under “What’s New: US releases 3 major taxonomies for US GAAP…” click on “Learn More…”

Choose the taxonomy you will review Click on the BASI taxonomy

Home page of the BASI taxonomy Scroll down to “Printout of taxonomy elements”

Select both PDF and Excel files of the Presentation Report Save both PDF and Excel taxonomy files

Anatomy of an XBRL Element XBRL Element XBRL Element Financial Reporting Concept

XBRL Element XBRL Element Basic Attributes Relationships To other Elements & Information Relationships To other Elements & Information Anatomy of an XBRL Element

XBRL Element XBRL Element Basic Attributes Data type Balance Type Period type Description Tag Name (computer readable) Tag Name (computer readable) Label (human readable) Label (human readable) Monetary / String, etc. Debit / Credit Instant / Duration “Amount paid in excess of the value assigned to the identifiable net assets acquired”. IntangibleAssetsGoodwill e.g. - “Goodwill” Anatomy of an XBRL Element

XBRL Element XBRL Element Publisher: FASB Name: Statement of Financial Accounting Stand. Number: 142 Paragraph: 23 URI: URIDate: Publisher: FASB Name: Statement of Financial Accounting Stand. Number: 142 Paragraph: 23 URI: URIDate: Net Goodwill = Goodwill – Accumulated Amortization Net Goodwill = Goodwill – Accumulated Amortization Anatomy of an XBRL Element Relationships To other Elements & Information Relationships To other Elements & Information Calculation Presentation Reference Assets Cash & cash equivalents Property plant & equipment Goodwill Total Assets Assets Cash & cash equivalents Property plant & equipment Goodwill Total Assets

Elements to Review  Focus on accounting terms, not XBRL technology  Accounting:  Concept  Label (not XBRL technical name)  Description  Balance Type (e.g. Debit / Credit)  Data type (e.g. monetary, string)  Period type (e.g. duration, instant)  References  Presentation order  Calculation (advance topic)* Basic attributes Relationships

Taxonomy in PDF Balance Type “Credit” Period Type “Instant” Date Type “Monetary” Label “Accounts Payable” Referenc e “APB 21” Description “Amounts due to third parties for goods or services received. Amounts have usually been invoiced”

Review Techniques  Comparison of taxonomies to:  Company financial statements  Internal accounting checklists / policies  Accounting standards  Industry Guides / common practice  Manual review of taxonomy  Create instance documents (advanced topic)*

Review Techniques (Cont.)  Type of Feedback  Missing terms  Inaccurate information  Review performed by:  Finance department  Financial statement preparers  Other accounting experts

Review Techniques (Cont.)  Depth of financial statement review  Face of the financials  Notes  Public taxonomy vs. Company extension

Review Techniques – Manual Review Data Type “Monetary” Balance Type “Credit” Period Type “Instant” Label “Accounts Payable” Description “Amounts due to third parties for goods or services received” Referenc e “APB 21”

Review Techniques Balanc e Type “Credit” Period Type “Instant” Data Type “Monetary” Label “Account s Payable” Referenc e “APB 21” Description “Amounts due to third parties for goods or services received” Review against financial statements Review against Accounting Standards, Industry Guides or Disclosure Checklists

Comparison to Company financial statements Look for the element “Goodwill” in the taxonomy.

Comparison to financial statement Primary Terms Taxonomy  Review of elements:  Balance type: Debit  Period type: Instant  Data type: Monetary  Label: Goodwill  Description: Amount paid in excess of the value assigned to the identifiable net assets acquired.  Reference: FASB Statement No. 142

Comparison to financial statement Primary Terms Taxonomy

Review the Presentation of the Elements “Statement of Financial Position” “Assets” is correctly listed on the Statement of Financial Position “Cash and due from Banks” and “Interest Bearing Deposits in Banks” are correctly listed as Assets on the Statement of Financial Position

Review the Calculation of the Elements – Remember, Totals are on top! Numerous types of line items for “Available for Sale Securities” total to the line item “Available for Sale Securities” All line items for “Marketable Securities” (e.g. Trading, AFS and HTM) total to the line item “Assets” “Assets” are included on the Statement of Financial Position

Review Enablers  Reviewer’s Guide to Financial Reporting Taxonomies 1.0  PDF taxonomy reports  Taxonomy editing software / instance creation software  GAAP Checklist, financial statements, accounting standards  Where to find information (XBRL.org)  Feedback form

Where do I go for the Reviewer’s Guide? Start at the Reporting Taxonomy Framework webpage Click on the BASI taxonomy

Review Enablers – Reviewer’s Guide to Financial Reporting Taxonomies 1.0 On the homepage of the BASI Taxonomy Scroll down to “Guidelines for Taxonomy Review” The Reviewer’s Guide is available in HTML and Word

Feedback Form  Captures:  Incorrect element attributes  Missing elements

Where do I get the Feedback Form? Excel file of the Presentation Report The Excel taxonomy file is the Feedback Form On the homepage of the BASI Taxonomy Scroll down to “Printout of taxonomy elements”

Feedback process – incorrect element attributes c Assume that the balance type for Goodwill was listed incorrectly as a “Credit”

Feedback Form for BASI taxonomy – incorrect element attributes Expand the row to view all the elements within the “Statement of Financial Position” This is the Excel file of the BASI taxonomy you obtained from the XBRL.org website

Feedback Form for BASI taxonomy – incorrect element attributes Find the element “Goodwill” on the Feedback Form Include your comment in the column next to the element “Goodwill” Be Clear and Concise !

Feedback Form for BASI taxonomy – missing element “Goodwill” Assume the element “Goodwill” was missing from the taxonomy

Feedback Form for BASI taxonomy – missing element “Goodwill”  For the element that is missing from the taxonomy include the following details:  Element label: “Goodwill”  Element description: “Amount paid in excess of the value assigned to the identifiable net assets acquired”  Balance type: “Debit”  Period type: “Instant”  Data type: “Monetary”  Reference: “FASB No. 142”

Feedback Form for BASI taxonomy – missing elements Find where the element “Goodwill” should be presented in the taxonomy Include new element detail in the comment area Missing element: Goodwill; description: Amt paid in excess of the value assigned to the identifiable net assets acquired; Debit; Instant; Monetary; Reference: FASB No 142

Where do I send my Feedback Form? the feedback form to the US Domain Working Group through Brad Homer at: Don’t forget to include your contact information!

Action Items  Visit the XBRL international web-sites  Review taxonomy review guide  Review taxonomy applicable to you  Commercial & Industrial  Banking and Savings Institutions  Insurance  In Process  Investment Management (public in November)  Broker Dealer  Provide feedback  60 day review period – ending Nov 19 th  Feedback form  Final release of taxonomies

Questions? XBRL Taxonomy Contact Point: Brad Homer