XBRL In the Classroom The Time is Now

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XBRL In the ClassroomThe Time is Now

Presented by Neal Hannon, Bryant College
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What is the business problem ?
Is XBRL right for the classroom today ?
YES IF XBRL will soon become a dominant method
of handling business reporting Other areas of
business are also moving to XML enabled
information. (HR, CRM, ERP, Insurance, etc.)

• The crux of the problem for business is to
  develop a comprehensive system that is
• All inclusive and
• Transparent to the user

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The Case for XML..

• XML - a computer markup language that is
  extensible (flexible can be added to)
• XML is actually a bare-bones set of syntax rules
  to markup any kind of text and data
• XML provides the structure of the text or data
• XML describes to humans to computers what the
  data is not how to display it

XML has become the fastest growing technology for
information transportation and exchange the world
of computing has ever seen. Business Integrator
Magazine says that nearly nine out of every ten
enterprises claim that XML will be and important
technology for their IT strategies over the next
year
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The Case for XBRL
The purpose of XBRL is to enhance the flow of
financial information through the creation of a
globally useful language in which to describe
financial facts and concepts. David vun Kannon
XBRL is uniquely positioned to Provide mobility
and transportability to financial and business
facts. Students in AIS, Advanced
Accounting,Auditing, Consolidations, Mergers,
Tax, Not-for-Profit will all be affected by XBRL
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The Case for XBRL
Arthur Levitt, Former Chairman, SEC
I would like to see you take your XBRL project
a step further, providing account
classifications for companies in Common
industries. In short, I challenge you to turn
all of this data into meaningful information for
investors
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The Case for XBRL
Business Week, November 5, 2001
SEC Chairman Pitt complains that financial
Reports are backward-looking, hard to
understand, and don't highlight the Information
investors need. Some of the improvements he is
considering SLICE N' DICE Accountants are
developing XBRL, a way of coding financial
reports on the Internet, that will let investors
download and manipulate companies' numbers any
way they like
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The Case for XBRL
Students will need to collect, interpret
and report data in many different XML
dialects XBRL provides a bridge not only to
financial statements, but to all business
reporting.
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XBRL Business Uses
Internal Uses include Account analysis Balanced
Scorecard
Wireless, PDA Cell Phone
Automated exception reporting
The internal use of XBRL is just Beginning to be
explored, brought on by XBRL for General Ledger
in public beta. New XBRL releases are
compliant with the latest version of W3Cs XML
Schema
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XBRL Business Uses
External Uses include SEC Filings IRS and State
Tax Filing
Wireless, PDA Cell Phone
Annual Reports Creditor Reports
Externally, XBRL focuses on the production of
GAAP financial statements for the business
financial reporting supply chain. The
external focus of XBRL is evident by the heavy
participation in XBRL.org by the AICPA and Big 5
Accounting firms
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XBRL International
International Accounting Standards and Major
Countries are changing the way Accounting is
conducted world-wide
Hot spots of development include Australia,
Singapore, Germany, Japan, followed by Canada,
the Netherlands, Spain, South Africa, Hong Kong,
Great Britain, and the Scandinavian countries.
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Stig Enevoldsen (Chairman IASC) September
1998
The fact is that we not only speak different
accounting languages but also give different
interpretations of the same events and
transactions
I believe that the best way forward in
accounting is to converge towards one single
world-wide accounting language.
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Sir David Tweedie (current IASB
Chairman) The mission of the newly-created
IASB is to increase the transparency of
financial reporting by achieving a single, global
method of accounting for transactions -- whether
in Stuttgart, Sydney, Seattle or Singapore.
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Need to define One Accounting LanguageOne
Transaction Methodology Within the IAS
Financial Reporting Framework To achieve the
objectives of High Quality Transparent Comparable
Financial Statements
IAS Philosophy Implications
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The VisionTo produce High quality,
Transparent, Comparable,General Purpose
Financial Reporting to International
Accounting StandardsUsing one accounting
languageOne transaction methodologyWhich are
useful for making economic decisions.
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The Vision for XBRL is no different! Just do
it Electronically in a binary
environment With the Seamless Transfer Of
Financial Information In a known state
Without Human Intervention
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Accounting Specification Design One
accounting language One transaction
methodologyOne presentation methodologyto
define all the facts required on an inclusive
exclude basis for a binary environment for the
seamless transfer of Financial Information in a
known state without Human Intervention
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The One Accounting Language ChallengeLanguage
System of words rules of a particular
communityObjectiveUnambiguous globally
understandable classifications Accounting
classificationsBy nature and classScientificall
y extensibleA place for everything and
everything in its placeTo classify items as yet
unknownAbsolute precisionBinary environment no
room for judgmentFact definition increases
exponentially as judgment is eliminated
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Mountain Zebra
Hartmans Zebra

ZEBRAS Plains Zebra
Quagga


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Bergzebra
Pyjama Donkey Z
EBRAS Steppenzebra
Kwagga

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Grevys Zebra

(Equus Grevyi )
Zebra
(Equus
Zebra Zebra) (Equus Zebra Hartmannae )
(Equus Quagga) (Equus Quagga Quagga)
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Many Human Presentations One Fact
in XBRL one fact with many labels
For example profit / non profit
organizations
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One Accounting Language Lessons
LearnedScientific language of accounting
defines a conceptual structure for the language
accounting facts within conceptual
structureNames facts for information
content Enterprise Information Value
information Qualitative information Spoken
language or Skins same fact different
labels economic - profit / non profit -
public entity vs private enterprise gaap -
different countries languages -
dialects Establish facts then resolve
labels Request fact clarification from IAS where
ambiguous or undefined Manage fact convergence
and label convergence separately
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XBRL Tag Once, Report Many Times
IRS
Financial Analysts
Financial Data tagged in XBRL
Annual Report
Style sheets
Management Team
SEC
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What software sees is the differentiator and
drives benefits
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No Direct Connectionwith Details
XBRL-enabled Financial Statements
Financial System
Note Without XBRL-GL, the connection from
XBRL-enabled financial statements to
transactional data stops at the financial system
Drill Down
Transaction Details
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Do You Need to Teach XML?Yes
No

• Basics of XML are needed to understand how
  business events are captured and stored
• XML basics can be self-taught or self-directed
  over the Web
• XBRL is valid XML

• This is Accounting, not computer science
• I dont have the time to teach XML, I need to
  learn it first.
• XBRL will soon go under the covers so I can
  ignore it.

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XBRL Market Activities

• MSDW SEC EDGAR filing
• Singapore and Australia efforts
• XBRL Academic Competition
• XBRL Essentials and Introducing XBRL Decision
  Making in a Digital Economy
• Vendor support for XBRL
• Jurisdictional Activity/Status

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Vendor Implementations

• ACCPAC
• CaseWare
• Creative Solutions
• e-Numerate
• eKeeper

• KPMGs Columbus
• KPMG Consulting
• Navision
• Newtec
• PPC
• XBRL Solutions
• SAP
• FRS (South Africa)
• FRx (Microsoft)
• Hyperion
• IBMATRIX

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XBRL Media Summary

• 213 articles for 12 months ended August 31, 2001
  generating over 36 million impressions1
• Equivalent to over 6.1 million in annual
  advertising2
• Generated stories in major financial
  publications CFO, American Banker, Times of
  London, Barrons, Financial Executive, Financial
  Times, Financial Director, Securities Industry
  News, Securities Week, Wall Street Technology,
  Pensions Investments
• Secured major wire stories Dow Jones, Bloomberg,
  Reuters, Newsbytes News, ABIX
• 24 total news releases issued by Consortium and
  AICPA

1-Does not include wire stories or Web stories
which have virtually limitless impressions.
2-Based upon ad dollar equivalents extrapolated
for a one-year period does not include ad dollar
equivalents for wire stories or Web stories.
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Books, Articles, Videos

• XBRL Essentials, Hoffman and Strand, June 2001
• Introducing XBRL, Hannon and Coffin, January
  2002.
• AICPA E-business Update Video and Workbook,
  2001.
• IMA National Conference Video
• Over 300 Articles, Special Section in Strategic
  Finance Magazine (June 2001), Monthly XBRL Column
• SoftwareAG XML video www.softwareag.com

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XBRL Tools

• Essentials include taxonomy builders, tools that
  map output to XBRL, style sheets for display.

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Neal Hannonnhannon_at_bryant.edu XBRL Education
Co-chair IMA IT ChairCredit to Dave
Garbutt, FRS, SA