1. Taxonomy Testing Techniques Which Yield High-Quality Taxonomies Charles Hoffman, CPA – UBmatrix

2. Slide 2 Introductions  Who am I  Who are you?

3. Slide 3 Agenda  Introductions  Validation – first step in testing, but not sufficient  Issues validation will not catch  Testing – the key to a quality taxonomy  Testing techniques that work  Strategy to help taxonomy users, that also help test  Problems caused by lack of adequate training  Provided in taxonomy to help instance validation  Questions and discussion

4. Slide 4 Validation  Necessary, but not sufficient  Interoperability issues  Types of automated validation  Errors (MUSTS, MUST NOT)  Warnings (SHOULD, SHOULD NOT, MAY)  Best practices (not in XBRL specifications, but very, very good ideas)  Inconsistencies (calculations)  FRTA conformance  Types of validation requiring humans

5. Slide 5 Automated Validation  XML well formed (syntax checking)  XML Schema validation (syntax checking)  XBRL validation (syntax checking, some semantics)  FRTA validation (syntax)  Best practices  Inconsistency checking (for calculations)

6. Slide 6 Example of Inconsistency Which Causes Issues  Presentation/Calculation mismatch

7. Slide 7 Human Validation Required  References are the proper/appropriate reference  Labels spelling correct  Labels consistent (Proforma, Pro-forma, Pro forma)  Balance type appropriate  Relations appropriate (calculation, presentation)  Can actually express data you desire to express

8. Slide 8 Strategy to Help Taxonomy Users, That Also Help Test Taxonomy  Providing things in taxonomy to help instance user  Calculations, business rules, XBRL Dimensions for 100% of computed relationships  Providing user’s manual  Providing a comprehensive sample instance document, forces you to use your own taxonomy  Providing a 100% test of taxonomy coverage  Providing input template with mappings

9. Slide 9 Problems caused by lack of adequate training  Moving from…  Unconsciously unconscious (don’t realize you have problems)  Consciously unconscious  Unconsciously conscious  Consciously conscious (you are certain you don’t have problems)  Have you PROVED your taxonomy is correct?

10. Slide 10 Provided in Taxonomy to Help Instance Validation  Business rules  For example, for validating movement analysis calculations  Disclosure checklist type validations, “If you have PPE, you must have PPE policy and PPE explanatory disclosure…”

11. Slide 11 Conclusions  Automated validation necessary, but not sufficient  Software interoperability is not to be trusted at this point, cut the cards  Human validation requires substantial experience and training (not only training)  Having the proper tools is crucial  What have you done to PROVE (to yourself) your taxonomy works correctly?  Help taxonomy users; only one creator; but many, many users of taxonomy  No matter how hard you test, the “stress” of real use will always turn up additional issues

12. Slide 12 Questions and Discussion