1. Advanced Accounting Information Systems
Day 29
Introduction to XBRL
November 2, 2009

2. Announcements First XBRL assignment due 11/4
Graduate student paper topics
Midterm progress
Dr. Kurtenbach’s report

3. Objectives
Obtain an overview understanding of XBRL and its role in computerized financial and business operations reporting
Understand key terms such as taxonomy, instance document, markup, and meta-data
Understand key aspects of SEC filing program
Understand the XML document foundation
Describe differences between XML and UBL

4. Question for today What is the purpose of UBL?
How does UBL differ from XBRL?

5. Question for today
What is the document exchange process in a simple procurement process?

6. Difference between HTML and XML
Tags provide presentation information
XML
Extensible – adding meaning to data and storing and processing it as information
As long as you follow the rules, you can extend or add to tags
Markup
Surrounding pieces of data with tags that add meaning

7. INTRODUCTION FINANCIAL REPORTING SYSTEM
Web(HTML)
XBRL(XML)
Paper based financial statements reporting
HTML based financial statements reporting
XBRL based financial statements reporting
Provide a standard method for preparing, analyzing, and exchanging financial information.
Limited accessibility
Not allow data exchange, intelligent search, and adaptive presentation
Off Line
LAN, Intranet, Internet

8. INTRODUCTION FINANCIAL REPORTING SYSTEM Paper Based HTML XBRL
Presentation
Content
Actual
Cash: 50000
Debt: 10000
Cash: 50000
Debt: 10000
Cash: 50000
Debt: 10000
<B> Cash: </B>
<I> Debt: </I>
Cash { font-weight: bold }
Debt { font-style: italic }
<Cash> </Cash>
<Debt> </Debt> 8

9. XBRL BASICS Instance document Taxonomy
XML file that contains business reporting information and represents a collection of financial facts and report-specific information using tags from one or more XBRL taxonomies
Element A financial reporting concept, defined in XBRL
Context Entity and report-specific information (reporting period, segment information, and so forth) required by XBRL that allows tagged data to be understood in relation to other information
Taxonomy
Electronic dictionary of business reporting elements used to report business information
Standard taxonomy Developed for U.S. companies by XBRL.US
Taxonomy extensions Created by individual companies

10. Definition, Content, and Presentation
XBRL BASICS
Facts
Definition, Content, and Presentation
Reporting
Cash and Cash Equivalents $35,000
XBRL Taxonomy
<element name="CashCashEquivalents"
id="cust_CashCashEquivalents"
type="xbrli:monetaryItemType"
substitutionGroup="xbrli:item"
nillable="true"
xbrli:balance="debit"
xbrli:periodType="instant"/>
<cust:CashCashEquivalents decimals="0"
contextRef="End2004"
unitRef=“USD">
35000
</cust:CashCashEquivalents>
XBRL Instance
Dictionary
Human readable format
<xsl:for-each select="//cust:CashCashEquivalents">
<xsl:if
<xsl:value-of select="format-number(current(), '###,###')"/>
</xsl:if>
</xsl:for-each>
XSLT Style Sheet
Data (Content)
Machine readable format
Rendering (Presentation) 10

11. WHAT DOES XBRL LOOK LIKE?
With XBRL, each item of a company’s reported information is tagged with a unique code identifier.
HTML or PDF Format
XBRL Format

12. HOW XBRL WORKS 12

13. MANDATE BASICS SEC rule proposal May 30, 2008
Adopted by SEC on December 17, 2008
Basics of the rule:
Required primary financial statements (PFS) and footnotes for all issuers using US GAAP/IFRS for periods ending June 15, 2009 or later
Year 1 – all large accelerated filers (worldwide equity float above $5 billion)
Year 2 – all other accelerated filers
Year 3 – all others
First year PFS plus block tag footnotes
2nd year include detailed tag footnotes
30 day grace period for first filing of PFS and detailed footnotes

14. XBRL Emerging technology under the auspices of XBRL International
Used to tag each piece of financial and business operations information in a standard way so that it can be validated, stored, and processed by computerized applications
XBRL specifications
Standard taxonomies
Instance documents
Metadata
Adds meaning to data

15. Why is XBRL Important?

16. Brief History of XBRL

17. EVOLUTION OF XBRL: A HISTORICAL PERSPECTIVE 17 July 2000
First specification of the XBRL Taxonomy for Financial Statements for the commercial and industrial U.S. companies.
April 2002
International Accounting Standards Board (IASB) released a core taxonomy of XBRL for Financial Statements (IASC 2001).
April 2004
Revised XBRL Specification 2.1 was released by International Steering Committee of XBRL International.
1997
Charlie Hoffman introduces the potential use of XML for financial reporting.
May 30, 2008
XBRL proposed mandating companies furnish statements in XBRL format.
October 1999
First meeting of the XFRML Steering Committee.
January 2006
SEC announces expedited reviews for XBRL filers.
01/ / / / / / / / / / / / /2008
August 1999
12 companies, (besides the AICPA), including ‘Big 5’ joined the project as members of the XFRML Steering Committee.
April 2000
XFRML Steering Committee was officially changed to XBRL Steering Committee.
November 2001
The second specification of the XBRL was released for public comment (see at for details).
December 2003
XBRL Specification 2.1 was approved and released by International Steering Committee of XBRL International.
April 2005
SEC XBRL Voluntary Financial Reporting Program (VFRP)
September 2007
XBRL US project team completes tagging of US GAAP (XBRL US GAAP Taxonomies 1.0).
December 17, 2008
SEC adopts XBRL mandate. 17

18. Glossary of New Terms – Chapter 1
EDGAR
FDIC
FFIEC
Instance documents
Meta-data
XBRL
XBRL Specifications 2.1
XBRL taxonomies
XML

19. XML Document Foundation
XML vocabularies discussed in class
Universal Business Language (UBL)
XBRL
Design goals of XML
Usable over the Internet
Support a variety of applications
Be human-readable
XML documents
Contain tagged items of data and conform to specific rules and syntax that make them processable by all XML-enabled software applications
Well-formed XML documents contain tags and data items in a nested hierarchy
Element
Tag set and its contents
Matching beginning and ending tag name along with its content
Root element
Parent of the entire XML document

20. Rules for Well-formed XML Documents
An XML document can have one and only one root element.
All elements must have matching beginning and ending names, and XML is case sensitive
Elements can contain attributes that add information about a specific element and appear following the beginning element name
All elements must be properly nested

21. Purpose of Basic Rules for XML Documents
Provide foundation for the creation of humanly-understandable tags (element names) to ‘markup’ data items with descriptive metadata (data about data)
Provide structure that enforces a strict hierarchy that results in very efficient computer processing

22. UBL Catalogue
Open-source software standards for e-business and Web services
Created by OASIS
Provides complete XML-based library of business documents to be used in e-business transactions
Reusable data components
Like all XML vocabularies, UBL has its own rules and guiding principles
Prolog
All XML documents start with a prolog
Processing instructions to be used by an XML processor and additional information such as documentation and structure information

23. Rules for UBL documents
Each has unique root element chosen to correspond to document’s purpose
Each has required ID element to uniquely identify document and IssueDate element to fix it in time
Each has two party elements appropriately named for purpose of document to identify provider/supplier and customer/buyer parties to document
Each has at least one line element appropriately named for purpose of document. Each line element is required to have ID element and appropriate item information

24. Practice
What are the child elements of the PostalAddress element shown in Figure 2.2?

25. XML Attributes All XML elements can have one or more attributes
Contained within the beginning element name brackets (<>) and further explain the meaning of an individual element
Have their own name and a value in the following format:
AttributeName = “attribute Value”

26. Practice
How would you interpret the data in the <Price> element within the second <CatalogueLine> element?

27. XML and UBL in Business

28. Glossary of New Terms Attributes Electronic data interchange Element
OASIS
Open-source software standards
Prolog
Reusable data component
Root element
UBL vocabulary
Valid XML documents
Well-formed XML documents
XML web services

29. Questions for Wednesday
What is the purpose of the XML schema language?
Distinguish between Namespaces and XLink?