Les week 6 inleiding tot xbrl

XBRL – Een inleiding

(2010 – 2011)

Les indeling

• 1e uur Waar staan we + Theorie • 2e uur Status update omtrent project • 3e uur Theorie

Waar staan we???

Beetje onvolledig, maar toch

Waar staan we op dit moment met

IFK1022 Waar had ik willen staan / waar moeten we op dit moment staan. Als groep doen we één project. Doel is dat iedereen elkaar op de hoogte brengt van zijn / haar onderwerp en dat jullie zo leren wat de onderwerpen nou doen met een organisatie. Uitwisseling van kennis loopt naar mijn idee niet super, maar ook niet slecht. Ik denk dat teovoeging van mijn eigen theorie genoeg voor jullie moet zijn om jullie doelstellingen, zoals gedefinieerd in les één, te realiseren. Tot nu toe behandeld:

- Les 1: Bepaald welke onderwerpen / leerdoelen jullie hebben bij dit vak. - Les 2: Informatie zoeken en gebruiken, zowel tijdens je opleiding als bij AC kantoren. - Les 3: - Les 4: Verandermanagement - Les 5: Jullie hebben voortgang geboekt, door elkaar in te lichten over de status van het

project, jullie onderwerpen en jullie plannen. Nog te goed, de onderwerpen:

- XBRL - BPM - BPR

Eind van de week liggen de beoordelingsformulieren voor alle functies bij mij op mijn bureau. Je weet dus uiterlijk volgende week maandag hoe en waarop je in week 8 wordt beoordeeld. Door wie, weet je al sinds les 1. Als je nu nog moet ingrijpen, is dit eigenlij k wel de laatste week. Volgende week bedoeld om de laatste hand te leggen aan de diverse onderdelen, dan is week 8 voor de afronding. Komen jullie aan de deadline? Of moet ik het verzetten? Eind product:

- Organogram van afdelingen + betrokken personen + ontslagen personen etc. - Geeft een inhoudelijk beeld van wat jullie hebben opgeleverd. - Geeft het proces weer op verschillende manieren (evaluaties, maar ook foto’s, mail verkeer

etc) Uiteindelijke cijfer:

- 60% - evaluatie door groep / leden - 40% - inhoudelijk. Dit beoordeel ik. Ik kijk na op :

Ik bepaal uiteindelijk het eindcijfer, waarbij duidelijk mag zijn dat als één van de twee onderdelen duidelijke onzin is, dat het vak alsnog onsuccesvol is afgerond. Punten waar ik inhoudelijk naar kijk:

- Samenhang tussen onderdelen - Correcte uitleg onderdelen - Realistische oplossingen per onderdeel (en de vereiste samenhang!!)

Over de theorie / PPT’s

• Van internet – min of meer tegen mijn principes. Waarom?– XBRL is NIET nieuw. Verwachting was in gebruik

name in 2005, nu nog steeds niet– Verwacht dat XBRL zichzelf zou ontwikkelen, de

waarheid is anders– XBRL specifiek is nieuw voor mij (NIJLR), maar de

achterliggende technologie werkte ik al wel mee.

Waarom deze Les

• XBRL heeft te maken met– BPM– BPR– Cultuur / Verandermanagement– Financiën– Auditing / waarborging kwaliteit

– Kortom “informatiekunde” en dan ook IFK022…

WTF is XBRL, wtflmaoya?

• What is XBRL?– eXtensible Business Reporting Language– A freely available open global standard for

• exchanging information– Computer consumable business information– An XML-based language– A mandate from regulators across the world– A Semantic Web metadata format

Duidelijk?

• XBRL is bedoeld om te

STANDAARDISEREN

• Opdrachtje: Geef eens een lijst / beschrijving van de doelgroep die dit nou kunnen gebruiken?

Doelgroep

• Insteek van XBRL is:Alles en iedereen met jaarrekeningen, jaarverslagen, belasting(ontduiking), uitwisseling etc….

• Werkelijkheid is:Aantal overheidsinstanties

Spelletje

• Raad de quote• Je krijgt vier quotejes, schrijf de namen /

beroepen van de personen op die dit gezegd kunnen hebben

• Winnaar – kopje koffie

Quoteje:

1. “Ik denk dat het er niet gaat komen, omdat het vrijwillige verplichting is”

2. “Het probleem ontstaat dat accountancydocenten te weinig verstand hebben van XBRL en ICT in het algemeen, om enige verandering te forceren bij de nieuwe generatie Accountants”

Andere Quotejes

3. “Ik wil de accountants duidelijk maken dat XBRL zal leiden tot geheel nieuwe management concepten, zoals continious monitoring”

4. “hahahahahahahahahaha, iets met ouwe koeien en sloten”

Uitspraak Beroep Context Naam

1 Docent AC Discussie over XBRL n/a

2 Hoogleraar AC information Systems aan de UvA

Discussie in De accountant

Eddy Vaassen -

3 Voorzitter XBRL vereniging

Discussie in De accountant

Pasmooij en Verkruijsse

4 Docent IFK Discussies over ICT binnen de AC beroepsgroep

Remco Nijland

Business Performance Management

Competitive Analysis

Risk Management

Auditor tools

404 Monitoring

Real-time Connection

Enterprise Use of XBRL

Data

Business Operations

Acquisition Integration

External Reports

SEC Filings

SEC Disclosure Checklist

Dept of Commerce

Banks

Internal Reports

Data

Data

General Ledger Consolidation

Drill down

XBRL in hoofdlijnen

• XBRL – General Ledger• XBRL – Financial Reporting

XBRL

• Taxonomiën ~ woorden boek(en) met definities

• Mapping – Grootboek koppelen aan XBRL bericht

• Instance document – het uiteindelijke emailtje

Extend the taxonomy if necessary

Financial Reporting XBRL Project

Create an instance document and validate calculations

Publish Instance Document & Taxonomy

Compare & map 10K/10Q to GAAP

Taxonomy

Assess Scope of Reporting & Download Taxonomy

Review & Validate Instance

Document

Identify a team: Accountant & Developer (XML)

How XBRL Works

Unstructured Text

Inventory

Inventory consists of produce purchased for resale and supplies and are stated at the lower of cost or market using the first-in, first-out (FIFO) method. Inventory as of December 31, 2006 and 2005 amounted to $45,594 and $34,456, respectively.

Structured Text

<InventoryInformation>Inventory

Inventory consists of produce purchased for resale and supplies and are stated at the lower of cost or market using the first-in, first-out (FIFO) method. Inventory as of December 31, 2006 and 2005 amounted to $45,594 and $34,456, respectively.</InventoryInformation>

Structured for Presentation<html><p><bold>Inventory</bold></p>

<p>Inventory consists of produce purchased for resale and supplies and are stated at the lower of cost or market using the first-in, first-out (FIFO) method. Inventory as of December 31, 2006 and 2005 amounted to <bold>$45,594</bold> and <bold>$34,456</bold>, respectively.</p></html>

Inventory


Structured for Meaning<Inventory> <ConsistsOf>produce purchased for resale and supplies</ConsistsOf> <StatedAt>lower of cost or market</StatedAt> <ValuationMethod>FIFO</ValuationMethod> <Value2006>$45,594</Value2006> <Value2005>$34,456</Value2005></Inventory>

Inventory


Structured for Meaning, Global Standard

<InventoryComponents contextRef=“D-2006”>produce purchased for resale and supplies</InventoryComponents><InventoryCostBasis contextRef=“D-2006”>lower of cost or market</InventoryCostBasis ><ValuationMethod contextRef=“D-2006”>FIFO</ValuationMethod><Value2006 contextRef=“D-2006” unitRef=“USD” decimals=“0”>45594</Value2006><Value2005 contextRef=“D-2006” unitRef=“USD” decimals=“0”>$34,456</Value2005>

Inventory


This isn’t your Daddy’s Financial Reporting Application!

Inventory


Current approach, type this into Word:

Smart XBRL Application:

Or:

Put a grid (neutral format table) here

XBRL invloed op AC in de toekomst

• Kwaliteit van informatie neemt toe• Eenvoudigere omgang financiële transacties• Minder tijd aan opmaak etc, meer tijd voor

daadwerlijke controles etc.• Meer continious controlling etc

UBmatrix, Inc. © 2006

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Nog te behandelen

• XBRL Taxonomies• XBRL Instance Documents • Comparison of XBRL versus XML

Taxonomies


Taxonomy

• Defines the concepts to be reported

– Concepts are defined as XBRL elements• Basic attributes• Relationships

– A taxonomy is a metadata repository. XBRL provides a model designed for financial reporting


Taxonomy

XBRLElementXBRL

Element

Financial Reporting Concept

Financial Reporting Concept

Basic Attributes

Basic Attributes

RelationshipsTo other Concepts

and Resources


and Resources


Taxonomy

XBRL Element:CashAndCashEquivalents

XBRL Element:CashAndCashEquivalents

Concept: Cash and Cash

Equivalents

Concept: Cash and Cash

Equivalents

Basic Attributes

Basic Attributes


and Resources


and Resources

Fact: 420,818Fact:

420,818

Metadata


Simplest XBRL Taxonomy• Consists of taxonomy “schema”

– Schema contains definitions of concepts, and links to additional taxonomy resources (if any)

• Have the .XSD file extension• A concept definition with some of its basic attributes

looks like this:<xsd:element

name=“CashAndCashEquivalents" id="adobe_2004_ CashAndCashEquivalents" type="xbrli:monetaryItemType" substitutionGroup="xbrli:item" nillable="true" xbrli:periodType="duration" />


Anatomy of a Taxonomy Element

XBRLElementXBRL

Element

Basic Attributes

Basic Attributes

Data type Data type

Balance TypeBalance Type

Period typePeriod type

DescriptionDescription

Name (i.e. XBRL “Tag”)

Name (i.e. XBRL “Tag”)

LabelLabel

Decimal, Monetary, String, Tuple, etcDecimal, Monetary, String, Tuple, etc

Debit / CreditDebit / Credit

Instant / DurationInstant / Duration

“Amount paid in excess of the value assigned to the identifiable net assets acquired”.

“Amount paid in excess of the value assigned to the identifiable net assets acquired”.

GoodWillIntangible(camel case)

GoodWillIntangible(camel case)

e.g. - “Goodwill”, Different languagese.g. - “Goodwill”, Different languages


“Richer” Taxonomy

• XBRL metadata model provides for the modelling of relationships

– Connects an element to another element or to a resource

• Connect elements that have a summation relationship• Connect an element to a resource such as a label or

documentation– XBRL refers to this declaration as an arc

XBRLElement

XBRL Element or ResourceRelationship

arc

Linkbases

• Linkbases are repositories of arcs, that is, repositories of declared relationships.– Linkbases have the .XML file extension– Linkbase types: presentation, definition, label,

calculation– File relationships:


Schema.xsd

Presentation linkbase.xml

Label linkbase.xml

Calculation linkbase.xml

Definition linkbase.xml


Relationships• Label - provides human readable labels for the element names.

Instructions and captions are label linkbases– Can be in multiple languages

• Reference - provides the means to link the element to “additional information”, including authoritative references

• Presentation - describes the hierarchical order of the elements in a report• Definition - describes how the elements relate to each other. Describes

the parent child relationship. The accounting concept relationships

• Dimensions – data cube view, like a Pivot Table in Excel• Calculation - defines calculations between two or more elements• Formula – business rules and complex computations


Common Relationships

XBRLElementXBRL

Element

Net Goodwill = Goodwill – Accumulated Amortization

Net Goodwill = Goodwill – Accumulated Amortization

RelationshipsTo other Elements

or Resources

RelationshipsTo other Elements

or Resources

CalculationCalculation

PresentationPresentationAssets Cash & cash equivalents Property plant & equipment GoodwillTotal Assets

Assets Cash & cash equivalents Property plant & equipment GoodwillTotal Assets

Relate a concept to…

“Cash”, “Open Cash Balance”, “Closing Cash Balance”, “Total Cash”

“Instructions: To complete this section of the report please refer policy number FDI349 Part 29”

“Cash”, “Open Cash Balance”, “Closing Cash Balance”, “Total Cash”

“Instructions: To complete this section of the report please refer policy number FDI349 Part 29”

LabelLabel


Other Relationship

XBRLElementXBRL

ElementPublisher : FASBName : Statement of Financial Accounting Stand.

Number : 142Paragraph : 23URI : http:/www.fasb.org/pdf/fas142.pdfURIDate : 2005-08-01

Publisher : FASBName : Statement of Financial Accounting Stand.

Number : 142Paragraph : 23URI : http:/www.fasb.org/pdf/fas142.pdfURIDate : 2005-08-01Relationships

To other Elements & Information(Linkbases)

RelationshipsTo other Elements &

Information(Linkbases)

ReferenceReference

Relate a reporting concept to a resource (documentation)

DefinitionDefinition

"Total All Regions" is the total of all regions, and the regionbreakdown includes "US and Canada", "Europe", "Asia", and "Other".

"Total All Regions" is the total of all regions, and the regionbreakdown includes "US and Canada", "Europe", "Asia", and "Other".

Instance Document


XBRL Instance Document• Contains the facts

• Reporting context (e.g., December 2, 2005)• Link to the taxonomy

Relationship to Taxonomy


• The facts are constrained by the taxonomy• Subject to robust internal checking by a

validation process via an XBRL Processing Engine


Instance Document

TaxonomyFinancial Reporting

Facts

Financial Reporting

Facts

InputReferencesXBRL

Instance Document

XBRLInstance

Document Context

<adobe-2004-balance:TotalCurrentAssets contextRef=”I2005-Consolidated” unitRef=”units-monetary” decimals=”0”>2008578 </adobe-2004-balance:TotalCurrentAssets >


Instance Document Validation

XBRLInstance

Document

XBRLInstance

Document

XBRLInstance

Document

XBRLInstance

Document

XBRLInstance

Document

XBRLInstance

Document

XBRL Processing Engine

… … …

Taxonomy


InstanceInstanceExample, US GAAP Commercial and IndustrialExample, US GAAP Commercial and Industrial

$420,818,000Instructions,

documentation ……

$420,818,000Instructions,

documentation ……

Basic Attributes

Basic Attributes

Values or TextValues or Text

TagsTags

Import TaxonomyImport Taxonomy

<usfr-pte:CashCashEquivalents decimals="-3" contextRef="AsOf20051202_Consol_Unaudited" unitRef="USD">420818000</usfr-pte:CashCashEquivalents>

<usfr-pte:CashCashEquivalents decimals="-3" contextRef="AsOf20051202_Consol_Unaudited" unitRef="USD">420818000</usfr-pte:CashCashEquivalents>

Anatomy of a Instance Document


Anatomy of an Fact

ContextsContexts

Scenario Scenario

EntityEntity

PeriodPeriod

Audited, Pro-forma, Restated, UnauditedAudited, Pro-forma, Restated, Unaudited

Adobe, Systems Inc.Adobe, Systems Inc.

Instant: As of 12/31/05Start/End: 1/31/04 – 12/31/05 Instant: As of 12/31/05Start/End: 1/31/04 – 12/31/05

MeasureMeasureCurrency: USD, EUR, Shares, EPSCurrency: USD, EUR, Shares, EPSUNITUNIT

FootnotesFootnotes (2) In 2005, gain on sale of building $2.7 million, net of taxes $0.9 million. (2) In 2005, gain on sale of building $2.7 million, net of taxes $0.9 million.

SegmentSegmentHeadquarters, Midland, Mi., Asia, Europe, North AmericaHeadquarters, Midland, Mi., Asia, Europe, North America

PrecisionPrecisionDecimal or PrecisionDecimal or Precision

Number of significant figures Number of decimal places

Number of significant figures Number of decimal places


Financial Facts• Two types of financial facts

(concepts):– Items, which represent individual facts– Tuples, which group items

• Items must• State their precision, if numeric• Refer to a unit of measure, if numeric• Refer to a context

Financial Reporting

Facts

Financial Reporting

Facts

Scale is a presentation issue and is not defined in an instance document


Financial Facts - Tuples• Two types of financial facts (concepts):

– Items, which represent individual facts– Tuples, which group items

Financial Reporting

Facts

Financial Reporting

Facts


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BASED ON ADOBE’s Financial Statement

• What would be in schema document and what is its file extension?

• What parts of the statement are attributed to UPC?• What is UPC?• Of these linkbases label, presentation, calculation,

reference, definition which would you except for the Adobe financial statement?

• What parts make up a context for Adobe?• Do you see any tuples in that part of the financial

statement?• What is a tuple?• What is scale and how is defined and where?• How are entities identified?

Professor X. Barrel wants to know?


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• What is a XBRL taxonomy?• Why are people working hard to use XBRL

taxonomies and instance documents?• What does Nillable and IsNil mean?

Professor X. Barrel wants to know?

Why does XML not meet the need of business reporting?


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XBRL is based on XMLXBRL is an XML-based markup language for defining business report structure and authoring business information.


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Markup languages: XMLThe purpose of XML is:

– To provide a means to communicate the content of a “page” in a system independent manner.

– To provide a means to locate and retrieve information in XML pages

<welcomeMsg target=“investor”>Dear Investor!</welcomeMsg> <welcomeMsg target=“analyst”>Dear Researcher!</welcomeMsg> <introPar language=“EN”>Welcome to our XBRL.Net website.

We provide access to the …</introPar><report> <entity name=“Internation Business Machines”>IBM<entity> <assets>40,822,000,000,000</assets> <currency >USD</currency>

<assets>40,700,000,000,000</assets> <currency>EUR</currency> <year> 2001 </year></report>


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XML Schema and Instance documents• For an application to locate certain information

• Needs to know first if information is contained in a particular type (e.g. a financial statement based on the USGAAP) of XML document.– The content structure is declared by the document definition– The technology used for this is the DDML (Document

Definition Markup Language, formerly XSchema)

• For an application to retrieve information from a XML document an instance document must use the tags defined in the DDML document that goes with it.


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Why only XBRL fits the bill?

• There are two big problems with regular XML XSchema and Instance documents from a reporting perspective:

1. XSchema document structures are fixed. You cannot add “your own” tags to the document structure.

2. XSchema only provides syntactic validation

• XBRL specification enables creating and extending document structures while providing syntactic validation.

• The XBRL specification enables declaration of semantics and business rules validation.

XML provides the right basis but is insufficient as an end-to-end solution platform


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Why does a markup language need to be flexible from a business reporting point of view?

• The XML language defines its document structures by means of the XSchema standard which defines these structure implicitly both with respect to the content and the “hierarchy”.

• If we take the financial statements as a reporting example:

• Same “information but different representation of the information”Regular XML XSchema DOES NOT ALLOW THIS flexibility

2005 2004€ '000 € '000

Land 5,347 1,147 Buildings 244,508 366,375 Furnitures and Fixtures 34,457 34,457 Computers and Equipment 4,169 5,313 Other 6,702 6,149

Total 295,183 413,441

2005 2004€ '000 € '000

Land 5,347 1,147 Buildings 244,508 366,375 Furnitures and Fixtures 34,457 34,457 Computers 2,069 3,113 Equipment 2,100 2,200 Other 6,702 6,149

Total 295,183 413,441


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Why does a markup language need to be flexible from a business reporting point of view?

• The XML language defines its document structures by means of the XSchema standard which defines these structure implicitly both with respect to the content and the “hierarchy”.

• If we take the financial statements as a reporting example:

• Same “information but with more detail in the lower level breakdown”

Regular XML XSchema DOES NOT ALLOW THIS flexibility

2005 2004€ '000 € '000

Land 5,347 1,147 Buildings 244,508 366,375 Furnitures and Fixtures 34,457 34,457 Computers 2,069 3,113 Equipment 2,100 2,200 Other 6,702 6,149

Total 295,183 413,441

Land 5,347 1,147 Buildings 244,508 366,375 Furnitures and Fixtures 34,457 34,457 Computers 2,069 3,113 Servers 1,850 1,600 Desktops 216 1,513 Equipment 2,100 2,200 Other 6,702 6,149

Total 295,183 413,441


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Examples of XML syntax validation.

• The structure is validated in the first example where the order of two lines is switched. This would render the document invalid

• The format of the reported value is invalid for Furniture… in the second example• The Computers breakdown items are not part of the Universe of Discourse and

can’t be reported about.

This is not sufficient for automated data exchange What is needed is semantic & business - rule

validation

Land 5,347 1,147 Buildings 244,508 366,375

Furnitures and Fixtures 34,457 many

thousands Computers 2,069 3,113 Servers 1,850 1,600 Desktops 216 1,513 Equipment 2,100 2,200 Other 6,702 6,149

Total 295,183 #VALUE!

2005 2004€ '000 € '000

Land 5,347 1,147 Buildings 244,508 366,375 Computers and Equipment 4,169 5,313 Furnitures and Fixtures 34,457 34,457 Other 6,702 6,149

Total 295,183 413,441


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Semantic validation• The attentive reader will notice that the first column doesn’t add up to the

reported total.

• The syntax is correct; structure, data types etc are all used correctly but the reported information is “not valid”.

• We EXPECTED the rows to add up to the reported total value and it doesn’t.

This brings up an important question!

►2005 2004€ '000 € '000

Land 5,347 1,147 Buildings 244,508 366,375 Furnitures and Fixtures 34,457 34,457 Computers and Equipment 5,169 5,313 Other 6,702 6,149

Total 290,836 413,441

Why did we expect the rows to add up to the reported total in the first place?


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How does XBRL solve these problems?

The fundamental difference between XBRL and XML is that XBRL makes the associations between concepts explicit.

Providing Unlimited Extensibility of SemanticsOf the Language Markup

Les week 6 inleiding tot xbrl

Education

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