Liv A. Watson - PowerPoint PPT Presentation

1 / 100
About This Presentation
Title:

Liv A. Watson

Description:

the leading business-to-business and Web-based provider of ... Gopher. Web Pages. Web Services. TCP/IP. HTML. XML. Connectivity. Presentation. Automation ... – PowerPoint PPT presentation

Number of Views:176
Avg rating:3.0/5.0
Slides: 101
Provided by: gaith
Category:
Tags: gopher | liv | watson

less

Transcript and Presenter's Notes

Title: Liv A. Watson


1
The Next Technology RevolutionXML
XBRL
  • Liv A. Watson
  • Director Edgar Online, Inc
  • XBRL Liaison Chair
  • E-Mail Lwatson_at_Edgar-Online.com
  • Phone 203.852.5703

2
  • EDGAR Online, Inc. is
  • the leading business-to-business and Web-based
    provider of business, financial and competitive
    information derived from U.S. Securities and
    Exchange Commission (SEC) data and a developer of
    Internet-based financial and business system
    solutions.

www.edgar-online.com www.freeedgar.com www.ipo-ex
press.com www.insidertrader.com www.fd.express.com

3
The Leader in Financial Information
  • NASDAQ EDGR Founded 1995
  • Offices Norwalk, NYC, Seattle,
    Baltimore/Rockville
  • Employees 120
  • Channels Retail, Internet, Corporate Sales
  • Worth Magazines 1 Online Research Site
  • Financial Insights, Inc. (FIS) Acquisition
  • Increases base of corporate customers
  • High-end data and technology solutions in-house
  • Expands product lines to EOLs corporate web
    based clients.

4
Why Use EDGAR Online?
  • EDGAR Focus
  • SEC filings and data derived from them
  • Internet Focus
  • We serve only Internet, intranet, and extranet
    delivery systems
  • Flexible Data Delivery Solutions
  • A full suite of information products delivery
    options
  • Prestigious Partners
  • Other leading companies have recognized the value
    of our singular focus and solutions
  • Market Leadership
  • 75 Corporate clients, 250,000 Internet Clients
  • First to Market with an XBRL Repository

5
EOL Sells Public Company Information and
Internet-based Application Services
6
Todays Objectives
  • Overview of XML XBRL
  • Show you how this technology makes doing
    E-Business
  • Faster
  • Cheaper
  • Better
  • XBRL Update
  • Conclusion

7
Find the best solution to connect the nine points
together with no more than four straight lines
without lifting your writing instrument.
8
Whatassumptionsare you making?
9
If you do not assume that you cannot extend your
lines beyond the imaginary square formed by the
box the puzzle becomes easier to solve.
10
Everything that can be invented has been
invented. Charles H. Duell Commissioner of
U.S. Office of Patents,urging President William
McKinley to abolish his office, 1899
11
Dont assume that the lines must pass through the
center of the dots.
12
Dont assume that the line must be thin.
13
Just to prove I can do it with two lines.
14
Dont assume that the paper must be flat.
15
If you rip the paper into nine segments, you can
stack them and poke your point through all at
once.
16
Dont assume that you cannot crease the paper.
17
Dont assume that the lines cannot extend beyond
the edge of the paper.
18
Dont assume that you cannot rip the paper.
19
Major Economic Changes
Source Cisco
20
Is There A Problem?
From Evansville Courier and Press
21
Lets move up the Value Chain
22
Islands of Information
23
Contentwithout Context
Searching for the word Mercury on the Web can
provide search results such as--
Hg
24
Simple problem 4921 results in a typical
search (e.g. IBM Fixed Assets)
25
The Problem
  • Multiple Users with different vendor software
  • e.g. MS Word, WordPerfect XML Editor

26
Problem Example
27
The Problem
  • Many different data types e.g.
  • Documents
  • CAD
  • Product Data
  • EDI
  • Spread Sheets
  • Databases

28
Result
29
Evolution to Web Services
Program the Web
Browse the Web
Web Services
Web Pages
Text Files
Automation
FTP, E-Mail,Gopher
Presentation
Connectivity
TCP/IP
HTML
XML
30
The Evolution of Internet Standards
New Standards Build on their Predecessors 1960
s Simple computer-to-computer interconnection 197
0s Email 1980s File exchange and sharing 1990s
Graphics and Hyperlinks gt the World Wide
Web 2000s Application standards
31
XML
  • XML stands for
  • eXtensible
  • Markup
  • Language
  • Universally accepted method of exchanging
    information

32
XML eXtensible Markup Language
  • 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 is used to supply the structure of the text
    or data
  • XML is used to tell both a human computer
    software what the text or data is not how to
    display it

33
The design goals for XML are
  • XML shall be straightforwardly usable over the
    Internet.
  • XML shall support a wide variety of applications.
  • XML shall be compatible with SGML.
  • It shall be easy to write programs which process
    XML documents.
  • The number of optional features in XML is to be
    kept to the absolute minimum, ideally zero.
  • XML documents should be human-legible and
    reasonably clear.
  • The XML design should be prepared quickly.
  • The design of XML shall be formal and concise.
  • XML documents shall be easy to create.
  • Terseness in XML markup is of minimal
    importance."
  • - Extensible Markup Language (XML) 1.0 Specs, The
    Annotated Version.

34
Why industry is taking XML seriously
  • HTML provided a fantastic ability to publish
    images of information
  • Static documents and data snapshots
  • Intended for humans
  • Firewalls enabled a robust infrastructure
  • An undervalued component
  • Allows industry to use the web
  • But most systems remain proprietary and
    non-interoperable
  • XML provides the remaining piece of the puzzle
  • Microsoft, Oracle, SAP etc etc

35
XML gives us...
  • Separation of content from format (and behaviour)
  • Information can be processed as well as presented
  • Arbitrarily complex data structures
  • Extensible information systems through the use of
    links
  • Interoperability
  • System-independent
  • Easy to parse and transform
  • Multiple ways to add meaning to the information
  • Style sheets, schemas, namespaces, architectures
  • Power in the Browser
  • 'something for Java to do'

36
XML
  • eXtensible Markup Language
  • Extensible that which can be extended
    (Webster)
  • Markup language - a computer language of codes or
    tags (a.k.a. containers)
  • ltfirstNamegtLivlt/firstNamegt

37
XML Family Tree
38
eXtensible Markup Language
  • is a meta markup language the World Wide Web
    Consortium (W3C) considers a universal standard
    for describing both structured data and the
    behavior of applications that process the
    language.

XML
39
What Is XML?
  • XML is a
  • platform-independent,
  • self-describing,
  • expandable,
  • standard data exchange format

40
XML is Platform Independent
  • Windows
  • Unix
  • Macintosh
  • Mainframe
  • Linux
  • DOS

41
XML is Self-Describing
  • Example
  • ltDATEgtJuly 26, 1998lt/DATEgt
  • Describes the information, not the presentation
  • Format neutral

42
XML is Expandable
  • Whereas HTML has a fixed set of tags
  • ltH1gt, ltBgt, ltIgt
  • XML lets you create your own tags
  • ltsugary-substancegt
  • ltShakespearean-charactergt
  • ltcash-equivalentgt

43
How does it work?
  • XML gives meaning to information through the use
    of tags

ltCustomergt ltNamegtLiv A. Watsonlt/Namegt
ltCompanygtEdgar Online Inc.lt/Companygt
ltTitlegtDirectorlt/Titlegt ltAgegt22lt/Agegtlt/Customer
gt
Caution.. Just because something is lttaggedgt..
Does not mean it is accurate?
44
Enter XML
  • ltperson ID"123" location"ny"gt
  • ltfirst-namegtLivlt/namegt
  • ltlast-namegtWatsonlt/last-namegt
  • ltcommentsgtLiv is a good speaker but has an
    annoying habit of preparing her slides at the
    last minute.lt/commentsgt
  • lt/persongt
  • ltlocation ID"ny"gt
  • ltnamegtNew York Officelt/namegt
  • ltaddressgt945 West End Avenuelt/addressgt
  • lt/locationgt

45
XML
  • Widely expected to reduce cost of publishing to
    the Net by as much as 50.
  • And by next year

Gartner Group prediction
70 of all B2B transactions executed on the Web
will be done using XML.
46
Why is XML so Important?
  • Portable
  • Vendor neutral
  • Readable data format
  • More flexible and easier to use than EDI
  • All major software products are becoming XML
    enabled
  • Defacto standards for data exchange
  • Enabling new levels of interoperability

47
XML is becoming the Web's Lingua Franca
Web Presentation (HTML)
Document Processing (SGML)
XML
Distributed Computing (CORBA, DCOM)
Information Exchange (STEP,CGM, etc.)
48
XBRL and the Emergence of e-Standards
  • E-Standards are fundamental
  • HTML is the standard that enabled the webs first
    Big Step
  • XML is the webs next Big Step
  • Over 400 XML-Based Specifications and Protocols
    exist, including
  • RosettaNet computer company supply chain and
    trading webs
  • OBI - Open Buying on the Internet - retail
    e-commerce
  • FpML - Financial Products (Derivatives, Swaps,
    FX)
  • ACORD XML - Insurance industry information
    exchange standards derived from EDI.
  • UN/CEFAC EBXML
  • XBRL is uniquely focused on financial and
    business reporting

49
Lesson Authoring XML Elements
  • An XML element is made up of a start tag, an end
    tag, and data in between.
  • ltdirectorOfxbrlgtLiv A. Watsonlt/directorOfxbrlgt
  • ltStudentgtLiv A. Watsonlt/Studentgt

50
Lesson Authoring XML Attributes
  • An element can optionally contain one or more
    attributes. An attribute is a name-value pair
    separated by an equal sign ().
  • ltCITY ZIP"01085"gtWestfieldlt/CITYgt

51
  • How many ways can we describe a book?

52
Lesson Authoring XML Documents
  • An XML Document is simply an XML element that
    can, but might not, include nested XML elements.
  • For example, the XML ltbooksgt element is a valid
    XML document
  • ltInventorygt
  • ltbooksgt ltbook isbn"0345374827"gt
  • lttitlegtXBRL Essentialslt/titlegt
  • ltauthorgt Charlie Hoffman lt/authorgt
  • ltauthorgt Carolyn Strand lt/authorgt
  • lt/bookgt
  • lt/booksgt
  • lt/Inventorygt

53
The design goals for XML are
  • XML shall be straightforwardly usable over the
    Internet.
  • XML shall support a wide variety of applications.
  • XML shall be compatible with SGML.
  • It shall be easy to write programs which process
    XML documents.
  • The number of optional features in XML is to be
    kept to the absolute minimum, ideally zero.
  • XML documents should be human-legible and
    reasonably clear.
  • The XML design should be prepared quickly.
  • The design of XML shall be formal and concise.
  • XML documents shall be easy to create.
  • Terseness in XML markup is of minimal
    importance."
  • - Extensible Markup Language (XML) 1.0 Specs, The
    Annotated Version.

54
Who defines the tags?
  • Tags are defined by industry consortiums
  • Each industrys standard tags are commonly
    referred to as a taxonomy

55
Content in Context (Industry-specific)
Auto Industry
ltCAR-MODELgt
Chemical Industry
ltSYMBOLgt
Publishing or Mythology
ltGODgt
Music Industry
ltRECORD-LABELgt
Aerospace
ltPROGRAMgt
Astronomy
ltPLANETgt
56
Defines Tags
57
XBRL Working Model Planned Specifications
XBRL for G/L Journal Entry Reporting
XBRL for Financial Statements
XBRL for EDGAR Filings
External Financial Reporting
Business Operations
Internal Financial Reporting
Investment and Lending Analysis
Processes
XBRL for Tax Filings
XBRL for Business Event Reporting
Investors
Financial Publishers and Data Aggregators
Companies
Participants
Auditors
Trading Partners
Regulators
Management Accountants
Software Vendors
58
(No Transcript)
59
Additionally
  • Confirmed New Members (as of 15 November 2000)
  • Deutche Bundesbank
  • U.S. Department of Defense (DFAS)
  • Dresdner Kleinwort Benson
  • Nikkei (Nihon Keizai Shimbun)
  • New River
  • Practitioners Publishing Company
  • National Center of Charitable Statistics
  • Seattle Pacific University, Center for
    Professional Development
  • Global Filings
  • Business Wire
  • Hong Kong Society of Accountants
  • Innovision

60
XBRL International is gaining strength
  • XBRL activities occurring in
  • United States
  • Canada
  • Australia
  • China Hong Kong
  • Japan
  • Malaysia
  • New Zealand
  • Singapore
  • Taiwan
  • Germany
  • India
  • Ireland
  • Netherlands
  • Nordic Federation (Denmark, Norway, Sweden)
  • Spain
  • Switzerland
  • United Kingdom
  • And on a global level through the

61
XBRL Impact
  • "The explosive growth of the Internet is not only
    changing the way companies conduct their
    business,
  • it also promises to forever alter the way they
    communicate business performance.
  • - CFO Magazine, February 2000

62
XBRL Documents
  • XBRL for Financial Statements
  • XBRL for General Ledger
  • XBRL for Journal Entry Reporting
  • XBRL for Credit Reporting
  • XBRL for Performance Press Releases
  • XBRL for Risk Reporting
  • XBRL for Regulatory Filings
  • XBRL for Tax Filings
  • XBRL for Assurance Schedules
  • XBRL for Authoritative Literature
  • XBRL for Business Reporting

63
XBRL Support
  • I would like to see you develop valuation models
    that result in consistent, comparable and fair
    values of assets and liabilities. I would like to
    see you hone specific, but plain English
    definitions for the types of information you
    believe should be included in public disclosure.
    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.
  • - Arthur Levitt, Chairman, U.S. Securities
    Exchange Commission
  • October 24, 2000, at the Fall Council of the
    AICPA (Las Vegas, Nevada)

64
  • XML for Financial Reporting
  • Enables a dramatic improvement in the processing
    of financial reports
  • XBRL documents can be
  • Prepared efficiently
  • Exchanged reliably
  • Published more easily
  • Analyzed quickly
  • Retrieved by investors simply to enable smarter
    investments

65
Problems XBRL Addresses
  • Ineffective communication to investors
  • Inefficient aggregation and analysis
  • Inefficient creation of financial statements

66
Process BenefitsLowering Financial Reporting
Cost
Who benefits
Printed Financials
  • Todays external reporting processes
  • Rework and delay
  • Ad hoc and non repeatable
  • No path forward

Regulatory Filings
Web Site
Accounting System
Tax Return
Explanatory Text
Trade Filings
Third Party Information
67
Process BenefitsLowering Financial Reporting
Cost
Who benefits
Printed Financials
  • Common interchange format and storage is good
    information management practice
  • Reduces redundancies discrepancies
  • Repeatable processes using tools
  • A platform for continuous reporting

Regulatory Filings
Web Site
Accounting System
Tax Return
Explanatory Text
Trade Filings
Third Party Information
68
Any Electronic Data Interchange
  • When different parties are willing to exchange
    well-defined administrative or commercial
    information by electronic means, they need to
    agree on
  • the exact semantics of the messagesAvailable
    standards or new problem?
  • a structured model of the informationThis is
    what matters from an IT point of view!
  • a data formatWhich selection criteria?

69
How XBRL Works
Improves the way companies -- and applications
-- share business reporting information
5. XBRL data can be used in applications B or
other comparable applications
3. XBRL information flows freely across the
Internet or VPN, LAN and WAN
1. XBRL Specific Data
Application - A
XML/XBRL translator
XML/XBRL translator
Application - B
Common XBRL Vocabulary
2. Application data is converted into a common
XBRL vocabulary
4. XBRL-tagged data is mapped into applications
specific data
70
XBRL Schema - Speaking the same language
1
4
Public XML Schema Repository
  1. Company X publishes an XBRL Schema in a public
    repository
  2. Company Z retrieves XBRL Schema from repository
    and generates XBRL
  3. Company Z sends XBRL document to company X over
    shared communication link
  4. Company X verifies correctness of received XBRL
    document by checking it against well-known schema

2
3
71
XBRL not a Transaction Protocol
What it is
  • XBRL is merely a format to serialize complex,
    structured financial data e.g., statements,
    G/Ls.
  • Therefore, it cannot replace OFX, ebXML, ANSI
    X.12 Trans Set 821, OMG G/L Spec, ...
  • Future message sets in those protocols could
    include XBRL tagged data if they need to send
    financial statements in the message body.
  • XBRL provides a framework and an AICPA approved
    vocabulary that can be extended to many other
    reporting frameworks.

72
XBRL not an accounting standard
  • Means of communicating
  • Current GAAP
  • Current practice
  • Flexible standard
  • Future standards
  • Future general practice

73
XBRL Impact
  • "Coming down the road are standards like XML and
    XBRL that take data handling a major step forward
    from HTML, the current web standard. With these
    new standards, plus those for accounting, it will
    be possible to scan a universe of corporate data
    across the web and extract, say, the chairman's
    report for all companies with a certain market
    cap, EBITDA, and gearing.

74
XBRL A Fragment of a Raw Data
  • Raw Data in Spreadsheet

Company Financial Statement Line Item Label Year Value
Coca Cola Co. Balance Sheet CurrentAssets.CashandCashEquivalents CurrentAssets.CashandCashEquivalents 1999 1611
Coca Cola Co. Balance Sheet CurrentAssets.CashandCashEquivalents CurrentAssets.CashandCashEquivalents 1998 1648
  • Same Raw Data in XML (XBRL) Format

ltgroupgt ltgroup type"CurrentAssets.CashandCashEqui
valents"gt ltitem period"1999"gt1,611
lt/itemgt ltitem period"1998"gt1,648
lt/itemgt lt/groupgt
75
Separating Presentation gt Data gt Logic
76
Separating Presentation gt Data gt Logic
Presentation
Data
77
Separating Presentation gt Data gt Logic
Presentation
Logic
Data
78
Separating Presentation gt Data gt Logic
Presentation
Logic
Data
Logic
79
(No Transcript)
80
XBRL-GL
  • Very new development to represent General Ledger
    transactions
  • Joint venture with EDIFICAS
  • Support
  • Consolidations within large and small
    organizations
  • Inter-organizational transactions

81
XBRL-GL
  • Explicitly designed not to require a Chart of
    Accounts
  • Explicitly designed to incorporate
  • Financial data
  • Non-financial data

82
XBRL in the Classroom
83
Classroom Ideas
  • A common language of business
  • The foundation language for sharing financial
    information over a network (e-business)
  • Better understanding the link between
    accounting IS
  • Creating audit schedules
  • Comparing financial information
  • Sharing data between apps.

84
XBRL and Research
85
XBRL and Research
  • Use and reuse of tagged-XBRL data
  • VAS - Validation, Authority and Submission
  • Assurance over XBRL statements
  • Drivers of adoption of XBRL, WebTrust, SysTrust
    etc. etc.
  • Trans-national analysis of financial statements
    etc. etc.

86
Issues with XBRL
87
But there are many issues ..
  • How to handle financial data points within
    textual disclosures?
  • Do need something approaching a fully normalized
    schema?
  • Or a flat file?
  • International compatibility?
  • Language conversion?
  • Handle national GAAPs?
  • Ontologies?

88
Ontologies?
  • The task of classifying all the words of
    language, or what's the same thing, all the ideas
    that seek expression, is the most stupendous of
    logical tasks. Anybody but the most accomplished
    logician must break down in it utterly and even
    for the strongest man, it is the severest
    possible tax on the logical equipment and
    faculty.
  • Charles Sanders Peirce, letter to editor B. E.
    Smith of the Century Dictio

89
XBRL Issues Foundational Conflicts
Data centricXBRL disclosures
Document centrictraditional disclosures
?
?
?
Human usage
Data extraction
Print
Web
90
And how to implement?
  • How to get national buy-in?
  • How to get corporations to adopt?
  • Show me your business model!
  • Role of information intermediaries?
  • DowJones, Moodys, EdgarOnline, ASX etc.

91
And ..
  • Audit?
  • Will be ..
  • Role for new information intermediaries.
  • XML specialists.

92
On the Independent Audit
  • The audit remains rooted in historical reviews
    while transactions are increasingly processed in
    a real-time manner.
  • We believe real-time auditing is not only
    possible, but it is necessary for the independent
    audit to survive in the information age.
  • - Emersons 2000 Big Five Annual Report, p. 14

93
Importance of Reporting
What excites the CEO is the ability to know
what the business is doing at any given point in
time, react quickly to market shifts and
competitive threats and remain in tight control
while empowering employees to make informed
decisions more quickly.

John Chambers Cisco CEO
Year End Earnings Release Call August 10, 1999
94
Best Practice
The Virtual Close has, in my opinion, just as
much impact on a companys future success or lack
thereof as the well-published e-commerce area.
John Chambers Cisco CEO
Year End Earnings Release Call August 10, 1999
95
XBRL Impact
  • If Europe moves quickly to take up these
    standards, it could give them an attractive lead
    in the race to accessible and comparative key
    data that would stimulate investor interest. It
    would undoubtedly spawn a plethora of research
    tools that would be useful to both private and
    professional investors.
  • - Investors Chronicle, August 9, 2000

96
XBRL Adds Reporting to E-Commerce
BUSINESS
Customers
Suppliers
97
XBRL Adds Reporting to E-Commerce
98
What is ebXML
  • Electronic business XML - ebXML
  • Joint effort of the United Nation/CEFACT and
    OASIS
  • Create a Single Global XML Framework Solution
  • 18 month project

99
ebXML
  • A global electronic market place where
    enterprises of any size, anywhere can
  • Find each other electronically
  • Conduct business through the exchange of XML
    based messages
  • Using standard message structures
  • According to standard business process sequences
  • With clear business semantics
  • According to standard or mutually agreed trading
    partner agreements
  • Using off the shelf purchased business
    applications

100
Main ebXML concepts
  • Business Messages Expressed in XML
  • Business Processes Defined in UML, Expressed in
    XML
  • Business Service Interface Handles one role in
    a business process Expressed in XML
  • Trading Partner Agreement Specifies protocols
    properties required for two specific business
    service interfaces to talk to each other
    Expressed in XML
  • Tansport and Routing Layer Moves the actual XML
    data between business service interfaces

101
Steps in Technology Acceptance
Acceptance
Simplification/Tools
Taxonomy
Visionaries
102
Whos Embracing XML now?
  • Software developersUsing XML as the core
    technology for new products
  • Database developers Building XML support into
    their products.
  • Industry groupsDeciding how information should
    be shared.
  • Organizations Investigating how to tie their
    inter and intra company processes together.

103
The Internet Changes Everything
  • Preparers
  • Get hold of your business and demonstrate your
    value.
  • Auditors
  • Keep audited financial reporting relevant.
  • Intermediaries
  • Play a role or get bypassed.
  • Analysts
  • Add value or lose value.
  • Creditors
  • Web-enable or lose customers.
  • Investors
  • Sort through the ocean of information to make
    good decisions

104
The 21st Century Annual Report (ICAEW 1998)
105
Who Benefits?
106
Benefits to Today's Users
  • 1. Reduce cost of analyzing and reporting
    financial information
  • 2. Increase speed and efficiency of business
    decisions
  • Enhance the distribution and access of existing
    financial statement information
  • More readily exchanged
  • Increase and enhance analysis

107
Financial Institutionsand their Users
  • SMALL BUSINESS provides FINANCIAL INSTITUTION
    with their information in XBRL and receives loan
    approval in less than a day instead of two
    daysor two weeks.

Average Time for Loan Processing1.75 days
Value-added Analysis and Decision-making?
90 time spent on Mechanics
With XBRL?
More Time for Analysis gt Better Analysis gt Less
Risk
Or
Mechanics
Analysis
Mechanics
Analysis
Mechanics
Analysis
Mechanics
Analysis
Process more loans in the same amount of time
108
Benefits
  • 1. Reduce cost of analyzing and reporting
    financial information
  • 2. Increase the speed and efficiency of business
    decisions
  • 3. Enhance the distribution and usability of
    existing financial statement information

109
Example Cost Reduction
  • International Subsidiaries
  • Large multi-national corporation uses XBRL to
    quickly rollup, analyze and publish the
    financial statements of numerous subsidiaries
  • in different countries
  • with different languages
  • using different GAAP
  • on different computer systems

110
Benefits
  • 1. Reduce cost of analyzing and reporting
    financial information
  • 2. Increase the speed and efficiency of business
    decisions
  • 3. Enhance the distribution and usability of
    existing financial statement information

111
Example Efficient Decisions
  • Major mutual fund company feeds XBRL-ized
    information to customers to differentiate their
    funds as more objective and reliable investments
  • An investor uses XBRL to compare the financials
    for a range of companies
  • Belonging to different revenue levels
  • Located within an industry sector
  • Along multiple analytical criteria

112
Benefits
  • 1. Reduce cost of analyzing and reporting
    financial information
  • 2. Increase the speed and efficiency of business
    decisions
  • 3. Enhance the distribution and usability of
    existing financial statement information

113
Example Credit
  • Loan Approval
  • Small Business provides Bank with their financial
    information in XBRL and receives loan approval in
    1 minute instead of 2 days
  • Credit Approval
  • Company approves customer credit request with
    automated assessment processes facilitated by
    XBRL
  • Line of Credit
  • Company provides capital markets with financial
    information in XBRL and receives expedited line
    of credit

114
Service Opportunities
115
Technology enables change
IS Consulting
Internal Control
FinancialApplications
PCs
116
Technology enables change
????
Data Centric
New Reporting Systems
XBRLXML
117
Progress
  • Morgan Stanley filed a 10K EDGAR filings to the
    SEC with XBRL tags.
  • All banks in Australia will report to the
    Australian Prudential Regulation Authority in
    XBRL this year, and all insurance companies next
    year.
  • Tax pilots in the U.S. with the States of New
    York and California scheduled this summer and
    fall.
  • University of Kansas XBRL Repository project 80
    financial statements

118
Progress
  • Membership Continues to grow
  • XBRL Germany and XBRL Japan have formally
    launched chapters this month

119
XBRL Germany Established
  • AUDICON GmbH
  • DATEV eG
  • Deutsche Bank AG
  • Deutsche Bundesbank
  • Deutsches Rechnungslegungs Standard Committee
    e.V.
  • Ernst Young Deutsche Allgemeine Treuhand
    Aktiengesellschaft
  • Haarmann, Hemmelrath
  • InnoData GmbH
  • Institut der Wirtschaftsprüfer
  • KPMG Deutsche Treuhand AG
  • MIS AG
  • PPA Gesellschaft für Finanzanalyse und Benchmarks
    mbH
  • PWC Deutsche Revision AG
  • SAP AG
  • Software AG

120
XBRL Japan Established
  • AsahiCo.
  • Asia Securities Printing Co.,Ltd
  • Beacon IT Inc.
  • Century Ota Showa Co.
  • Chuo Aoyama Audit Corporation
  • Digital Notarization Authority
  • DIVA Corporation
  • Fujitsu Ltd.
  • Hitachi System Services,Ltd.
  • Hitachi, Ltd.
  • Japan Information Service Industry Association
  • Nihon Keizai Shimbun, Inc.
  • Nikkei
  • PCA Corporation
  • Takara Printing Co., Ltd.
  • Teikoku Databank, Ltd.
  • The Japanese Institute of Certified Public
    Accountants
  • Tohmatsu Co.
  • Tokyo Shoko Research, Ltd.
  • Toyo Keizai Inc.

121
Progress
  • The IASB is leading the development of XBRL for
    IAS a working version is expected by October.
  • The Second International XBRL Meeting was held on
    June 11-15 in New Orleans, Louisiana, with more
    than 80 participants from more than 10 countries
    attending.
  • The Third International XBRL Meeting will be held
    in Sydney, Australia during the month of October.
    A tentative date has been set for October 22
    25.

122
Recent Announcements
  • Released for public comment enhanced version of
    specification for XBRL for Financial Statements.
  • harmonizes with the W3C XML Schema to better
    align with initiatives of the W3C and other XML
    organizations for global interoperability.
  • Released for public comment XBRL for General
    Ledger

123
XBRL in Print
  • XBRL Essentials by Charles Hoffman, CPA and
    Carolyn Strand, CPA, Ph.D
  • Introducing XBRL Decision Making in a Digital
    Economy by Neal Hannon and Zachary Coffin
  • XBRL Financial Reporting in the 21st Century
    by Liv A. Watson

124
Software Publisher Update
  • ACCPAC Advantage Series(TM)
  • CaseWare Working Papers
  • CPA2Biz CPA Dashboard will produce XBRL reports
  • eKeeper CFO Virtual Desktop System (Q3)
  • eNumerate Solutions Taxonomy Developer, Analyst
    Tools
  • FRx Forecaster
  • Hyperion Hyperion Reports (Q3-4)

125
Software Publisher Update
  • KPMG's Columbus ASP for continuous business
    performance improvement (Q4)
  • KPMG Consulting Inc. developing the XBRLearning
    Channel.
  • Navision Financials
  • Newtec's MultiMart(TM) Web Financials
  • SAP will deliver XBRL functionality as part of
    its mySAP Financials e-business solution (Q4)
  • XBRL Solutions - Taxonomy Builder, XBRL Tools,
    Training

126
XBRL Taxonomies Under Development
App to fin rep
  • Commercial and Industrial Companies, US GAAP -
    Published
  • Federal Departments, US
  • Mutual Funds, US
  • Financial Institutions, US
  • Commercial and Industrial, IASC
  • Commercial and Industrial, German GAAP
  • Bank Call Reports - FDIC

127
How Do You Get There?
Needs Assessment
Design Solution/Business Plan
Training Education
Implementation
128
Does XML Shortcomings?
Not a replacement for integration and middleware
tools
Lots of Hype, not a solution for everything
There are many different standards among
industries
Standards still evoloving
But, you cant wait while the standards evolve.
129
So when will this happen??
quiz
  1. Never.
  2. After I retire.
  3. Before I retire but too late for me to have to
    worry about it.
  4. Sooner than I want to admit, but I still have
    enough time to procrastinate.
  5. Next five years.
  6. Next two to three years.

130
XBRL Development Adoption
131
When Will It Reach Critical Mass?
  • The phonograph is of no commercial use
  • - (Thomas Edison, 1880)
  • Everything that has been invented has been
    invented - ( Charles Duel, Director US Patent
    Office, 1899)
  • Who the hell wants to hear actors talking?
  • - (Harvey Warner, 1927)
  • I think there is a world market for about five
    computers - (Thomas J Watson, Chairman, IBM,
    1943)
  • There is no reason for any individual to have a
    computer in their home - (Ken Oloson,
    President of Digital Equipment Corp., 1977)
  • 640k ought to be enough for anyone
  • - (Bill Gates, 1981)

132
When Applications Talk to Each Other
133
Final Thought..
  • Change is not what it used to be..
  • Change has become a process its become a
    permanent part of the external environment

134
Additional Education Sources
  • www.xbrl.org - Student Competition
  • www.xml.org
  • www.ebxml.org
  • www.w3.org
  • www.rosettanet.org
  • www.ibm.com/developer/xml
  • www.microsoft.com/industry/biztalk

135
Summary
  • FASTER
  • BETTER
  • CHEAPER
  • Our profession will have to follow technology
    and record business activity in an real-time
    mode.

136
Concluding Remarks..
Embrace Change or Die!
137
To download slides.
138
Questions ?
Liv A. Watson Edgar-Online Inc E-Mail
Lwatson_at_Edgar-Online.com Phone (812) 499-8149
Write a Comment
User Comments (0)
About PowerShow.com