Taylor HawesTaylor HawesController – Global Platforms & Operations

Microsoft Corporation

SEC Voluntary Filing ProgramSEC Voluntary Filing Program

SEC Voluntary Reporting Program on the SEC Voluntary Reporting Program on the EDGAR SystemEDGAR System

Effective date March 16, 2005 Allows companies to “furnish” XBRL tagged

financial statements Added Rule 401 to Regulation S-T allowing filers to

furnish supplemental information using XBRL Allows for company flexibility in filing financial

statements, with or without footnotes and MD&A Can submit XBRL tagged document either with the

official filing or as an amendment, however, there is no submission deadline

Must correlate to a standard GAAP Taxonomy Relief for liability if error is not materially

misleading or false

SEC Voluntary Reporting Program on the SEC Voluntary Reporting Program on the EDGAR SystemEDGAR System

SEC would like to study: Search capability of EDGAR database Capability to perform financial comparisons

amongst registrants Ability to perform financial analysis (ratios, etc.) Impact on staff’s ability to review filings more

timely and efficiently Use of tagged data for risk assessment Compatibility of XBRL with other Commission

requirements

Financial Reporting ProcessFinancial Reporting Process

Extend the taxonomy if Extend the taxonomy if necessarynecessary

Financial Reporting XBRL Project

Create an instance Create an instance document and validate document and validate

calculationscalculations

Publish Instance Document & TaxonomyPublish Instance Document & Taxonomy

Compare & map Compare & map 10K/10Q to GAAP 10K/10Q to GAAP

TaxonomyTaxonomy

Assess Scope of Assess Scope of Reporting & Download Reporting & Download

TaxonomyTaxonomy

Review & Review & Validate Validate Instance Instance

DocumentDocument

Identify a team: Accountant & Identify a team: Accountant & Developer (XMLDeveloper (XML))

Microsoft Facts…. Was one of the first companies to make XBRL tagged

financials available on www.microsoft.com March 2002 Was the first company to furnished complete 10Q March

2005 quarter (MD&A, Financial Statements and Footnotes) in anticipation of Voluntary Filing Program

Was the first company to furnish complete 10K FY2005 80+ Hours for first effort Used 4 different programs to extend, tag and validate Instance document totaled 92 pages Over 8,000 tagged items Over 20 Taxonomy extensions Most significant challenge was footnote tables for “Segment

Reporting” Instance document was reviewed 3X by two different people Did not request audit of tagged document

Internal Value PropositionInternal Value Proposition

Business Business Performance Performance ManagementManagement

Competitive Competitive AnalysisAnalysis

Risk Risk ManagementManagement

Auditor toolsAuditor tools

404 Monitoring404 Monitoring

Real-time Real-time ConnectionConnection

Enterprise Use of XBRLEnterprise Use of XBRL

DataData

Business Business OperationsOperations

Acquisition Acquisition IntegrationIntegration

ExternExternal al ReportReportss

SEC SEC FilingsFilings

SEC SEC DisclosurDisclosure e ChecklistChecklist

Dept of Dept of CommercCommercee

BanksBanks

Internal Internal ReportsReports

DatDataa

DataData

General General Ledger Ledger ConsolidatioConsolidationn

Drill Drill downdown