XBRL IN ACTION

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XBRL IN ACTION LEAP and the substantial
benefits of deploying XBRL
Mark Hucklesby
Dr David Hay
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Why did we consider XBRL?

• Actively demonstrate thought leadership
• Better wanted a one stop shop
• Faster - to reflect a changing environment
• Cheaper - to distribute and maintain
• To gain hands on experience with the technology
  so that this could be shared with clients and
  students

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LEAP XBRL in action
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LEAP XBRL in action
Overview of LEAP

• The site is the first of its kind in the world
  that utilises the power of the eXtensible
  Business Reporting Language (XBRL), the future of
  web-based financial reporting, to present model
  financial statements prepared in accordance with
  New Zealand generally accepted accounting
  practice (GAAP).
• Material is presented in distinct volumes,
  including model financial statements prepared
  under Australian and IFRS GAAP.
• Choose one of the menu items on the right of the
  screen to select the version and edition of the
  model financial statements or guidance that you
  wish to view.

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LEAP XBRL in action
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LEAP XBRL in action
- ltgroup type"cicashCashEquivalentsAndShortTermI
nvestments.shortTermInvestments"gt  ltlabel
href"xpointer(..)" xmllang"en"gtInvestmentslt/lab
elgt   ltitem id"BS-03" period"1999-05-31"gt96700lt/
itemgt   ltitem id"BS-04" period"1998-05-31"gt48721
lt/itemgt   lt/groupgt- ltgroup type"cicurrentAssets.
receivablesNet"gt  ltlabel href"xpointer(..)"
xmllang"en"gtAccounts receivable, netlt/labelgt  
ltitem id"BS-05" period"1999-05-31"gt12593lt/itemgt
  ltitem id"BS-06" period"1998-05-31"gt8790lt/itemgt
  lt/groupgt- ltgroup
Ledger System
XBRL instance document
XBRL taxonomy
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LEAP Our story

• The lessons learnt from 3 years of practical
  application of XBRL
• What we have achieved with XBRL
• Where the benefits have emerged
• Our current thoughts on this mediation language
  and when its going

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Evolution of LEAP
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Lessons Learned

• Always keep the objective in sight
• Beware of scope creep
• End user considerations are paramount
• Time in reconnaisance is seldom wasted
• Upload from the general ledger aborted
• Need to really understand taxonomy architecture
• Financial/Non-financial reporting elements were
  challenging

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Our Users?

• University of Auckland is New Zealands leading
  research university, has 32,000 students with
  3,000 students currently in the Business School
• Ernst Young, 600 partners and staff in NZ, and
  more than 100,000 professionals around the world

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What business need did we have?

• Wanted answers to essentially the same questions
  (in this case the questions centered around
  what needs to be considered before one can assert
  that a company Annual Report is fully compliant
  with NZ legislation)
• Our solution was link questions to answers using
  XBRL (via the infamous tags)

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So what questions are being answered with the
help of XBRL? (1)

• Can I offset the bank overdrafts against
  positive cash balances in other group companies?
• What is the FRS-9 requirement about audit fees?
• What do we need to show about deferred tax?
• What does FRS-31 require?

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So what questions are being answered with the
help of XBRL? (2)

• What is an audit report required to show?
• What effect will adoption of IFRS have on my
  results?
• What changes have there been to the definition of
  a finance lease since I last researched this
  issue?
• How do I report an amalgamation?

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What have we achieved?
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LEAP as a reference tool
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LEAP reference for tax, audit or other
information
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GAAP Switch (Links existing NZ GAAP to IFRS)
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What benefits have emerged?

• Relatively easy to update but task will be made
  easier with newer technology
• The dice, slice and compare is proving
  particularly useful as we look back to what was
  done in previous periods
• Greater understanding of relationships that exist
  within annual reports through the tagging
  process

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Where to from here?

• Need to replatform to the 2.1 Specification
• Need to use official NZ taxonomy tags
• Introduce more tools to facilitate analysis of
  the data stored in XBRL
• Introduce more XBRL connectivity
• Further extension of existing functionality in
  relation to comparing GAAP

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Closing remarks

• Unleashing the power of XBRL will still take
  some time!