Dimensions and Formulas for Financial Professionals Charles Hoffman, CPA – UBmatrix

Slide 2 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

Slide 3 Introductions  Who am I  Who are you?

Slide 4 Understanding XBRL Dimensions

Slide 5 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

Slide 6 Brief Explanation of Multidimensional Analysis  Overview of XBRL Dimensions  Using an Example  Intentionally keeping it simple

Slide 7 Adding More Complexity  Using a more complex example

Slide 8 Common Dimensional Use Cases  Sales analysis (covered above)  Sector breakdown  Continuing, discontinued operations  Excluding specific dimensions  Implicit (typed) dimensions

Slide 9 Dimensions Impact on IFRS-GP Taxonomy  Segmental breakdown

Slide 10 Dimensions and Tuples Discussion  When to use tuples, when to use dimensions

Slide 11 Business Rules (Formulas)

Slide 12 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

Slide 13 What are Business Rules?  Syntax  Semantics  Metadata  Business rules

Slide 14 Syntax  Syntax is similar to “the order of the words”  This is a syntax  345  “foo”, “bar”, “john”, “doe”, “345”  [foo:bar john/doe/345/foo:bar]  XML parsers enforce syntax (not semantics)  XML Schema enforces syntax (not semantics)

Slide 15 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

Slide 16 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.

Slide 17 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

Slide 18 Business Rules in Financial Reporting  In a taxonomy  Movement analysis  Supplement a taxonomy  Ratios  Disclosure checklist  If this, then that…

Slide 19 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

Slide 20 Questions and Discussion