XBRL: Will it Revolutionize Financial Reporting? UAA – ACCT 316 Accounting Information Systems Dr. Fred Barbee

AICPA Top Ten Technologies

Top Ten Technologies Information Security 2. Business Information Management 3. Application Integration 4. Web Services 5. Disaster Recovery Planning

Top Ten Technologies Wireless Technologies 7. Intrusion Detection 8. Remote Connectivity 9. Customer Relations Management 10. Privacy

AICPA Top Ten Technologies

Top Ten Technologies Business and Financial Reporting Applications 2. Training and Technology Competency 3. Information Security and Controls 4. Quality of Service

Top Ten Technologies Disaster Recovery (includes business continuation and contingency planning). 6. Communications Technologies – Bandwidth 7. Remote Connectivity Tools

Top Ten Technologies Web-based and Web-enabled Applications (Internet) 9. Qualified IT Personnel 10. Messaging Applications ( , faxing, voic , instant messaging).

Top Ten Technologies 2002 Business and Financial Reporting Applications Training and Technology Competency Information Security and Controls Quality of Service

What is XBRL?

eXtensible... Capable of being extended or protruded. Of or relating to a programming language or a system that can be modified by changing or adding features. eXtensible = Flexible

XBRL XBRL is an XML-based framework that provides a standards-based method to prepare, publish in a variety of formats, reliably extract and automatically exchange financial statements of both public and private companies and the information contained within.

XBRL (From xbrl.org) Provides an XML-based framework that the global business information supply chain can use to create, exchange, and analyze financial reporting information including, but not limited to...

XBRL... Regulatory filings such as annual and quarterly financial statements. General ledger information, and Audit schedules.

XBRL... XBRL is freely licensed and facilitates the automatic exchange and reliable extraction of financial information among various software applications anywhere in the world.

What is XML? eXtensible Markup Language

XML “If HTML is the fire-engine red paint and supple leather interior of a sports car... Michael Morrison. Teach Yourself XML in 24 Hours XML is the turbocharged engine and sport suspension.”

XML

eXtensible Markup Language ……is a meta markup language the considers a universal standard for describing both structured data and the behavior of applications that process the language.

VPML – Virtual Pet Markup Language

HTML – XML Comparison Sample HTML Coding Sale Price: $24.95 (Suggested retail: $39.95) Shipping cost: $4.00 UPS Ground Sample XML Coding

What Is XML? “XML is a platform-independent, self-describing, expandable, standard data exchange format.”

XML is Platform Independent Windows Unix Macintosh Mainframe Linux

XML is Self-Describing Example: July 26, 1998 Describes the information, not the presentation Format neutral

XML is Expandable Whereas HTML has a fixed set of tags,, XML lets you create your own tags The key focus is on content, not presentation

XBRL XML and XML enabling technologies X-Link, X-Schema SGML Standard Generalized Markup Language XBRL Builds on XML and SGML Industry Developed, Supported W3C Supported ISO Standard

How does it work? XML gives meaning to information through the use of tags Bob Smith XYZ Corporation CEO 49

How XML Works Improves the way companies -- and applications -- share information Enjoys strong industry and vendor support

What XML is Not!! XML is Not A religion. The solution to all world problems. A solution for all electronic commerce problems. A solution to all legal-technology problems.

What is ‘XML’? XML is a Tool XML is a Really Cool (Powerful) Tool! Like all tools, XML can be used wisely and unwisely.

Why is XML so Important? Vendor neutral Readable data format More flexible and easier to use than EDI

Why is XML so Important? All major software products are becoming “XML” enabled Defacto standard for data exchange Enabling new levels of interoperability

XML Widely expected to reduce cost of publishing to the Net by as much as 50%. Gartner Group prediction 70% of all B2B transactions executed on the Web will be done using XML. And by next year

Who defines the tags? Tags are defined by industry consortiums Each industry’s standard tags are commonly referred to as a taxonomy

XBRL Taxonomies Commercial and Industrial Companies, US GAAP - Published Federal Departments, US Mutual Funds, US Financial Institutions, US Commercial and Industrial, IASC

XBRL Taxonomies Commercial and Industrial, German GAAP Bank Call Reports - FDIC

Who’s Building Taxonomies? Accounting Advertising Architecture Automotive Banking Communication Economics Education E-Commerce EDI ERP Financial Healthcare HR Insurance Legal Music News Publishing Real Estate Retail Science Software Supply Chain

Astronomy Aerospace Music Publishing or Mythology Chemical Auto Industry Industry Specific Context

HTML, XML, and XBRL? How do they differ?

HTML In simple terms, HTML is a system of marking up a document so it can be published on the WWW. Documents prepared in HTML contain reference graphics and formatting tags.

HTML HTML is a series of pre-defined tags that primarily focus on describing how content appears on the Internet. HTML describes what font, font size, and color the text of this paragraph should be when viewed via a web browser.

HTML With HTML you have a lot of content but no real context. That is where XML comes in.

eXtensible Markup Language XML is the universal format for data on the web that uses tags to give context and structure to content. XML is a standards language ratified in February 1998 and maintained by the World Wide Web Consortium (W3C).

eXtensible Markup Language XML does not replace HTML – it is a complimentary format that is platform independent, allowing XML data to be rendered on any device, such as a computer, cell phone, PDA or tablet device.

eXtensible Markup Language XML allows developers to easily describe and deliver rich, structured data from any application in a standard, consistent way.

eXtensible Markup Language Whereas HTML offers a fixed/pre- defined number of tags... XML neither defines nor limits tags. XML provides a framework for defining tags (taxonomy) and the relationship between them (i.e., schema).

XBRL is an XML-based schema that focuses specifically on business reporting. XBRL is a complement to XML, allowing accountants and regulatory bodies to identify items that are unique to the business reporting environment

XBRL’s schema defines how to create XBRL documents and XBRL taxonomies (i.e., GAAP, IAS), Providing a set of business information tags that allows users to identify business information in a consistent format.

XBRL is also extensible in that users are able to create their own XBRL taxonomies that define and describe tags unique to a given environment.

XBRL: How It Can Improve Today’s Business Environment

XBRL Benefits Case 1: Consolidating Subsidiaries Case 2: Issuing Financial Statements Case 3: Analyzing Financial Information Case 4: Following Government Regulations

What are the problems solved by XBRL?

XBRL... XBRL is freely licensed and facilitates the automatic exchange and reliable extraction of financial information among various software applications anywhere in the world.

What is XBRL Used For?

XBRL, at least at first, will be used to publish digitally companies’ financial statements for external users. An XBRL-based F/S is a digitally enhanced version of paper-based F/S which includes the complete “set” of F/’S including the accountant’s report.

Potential XBRL Applications

Financial Statements Taxes Regulatory Filings Accounting and Business Reports Authoritative Literature.

What are the benefits of XBRL for Financial Statements?

XBRL Benefits Preparing a financial statement for Printing A Web Site Regulatory filing Means potentially entering information three times.

XBRL Benefits With XBRL, information will be entered once and the same information will be “rendered” As a printed Financial Statement As an HTML document for a Web Site As an EDGAR filing As a raw XML file As some specialized reporting format

Transaction Details Financial System XBRL-enabled Financial Statements Drill Down