XBRLWhat is it?What’s happening with it?

The panelists:

•Skip Falatko – MACPA•Thomas Hood – MACPA student intern

(Salisbury University)•Eric E. Cohen – PricewaterhouseCoopers

& founding member of XBRL

XBRL•eXtensible•Business•Reporting•Language

XBRL

•Open standard tagging language

•In use internationally

•SEC requirement in US

•“Bar coding” of financial information

XBRL tags provide meaning and context such as……

•McCormick & Company•Sales Revenue $3,122•US Dollars•US GAAP•Audited•Year ending November 30, 2010

Taxonomies are data dictionaries

•Used to organize tagged data•They include the financial statement elements

•Are unique to specific industries•Can be extended to fit your organization

Initial XBRL work with Microsoft

•Fitting into the commercial and industrial taxonomy was a challenge

•Non-profits need their own taxonomy

•XBRL would be beneficial to the non-profit community

Why does XBRL matter?

•Facilitates the automatic exchange of information

•Can be used to populate financial statements, tax returns, or anything that relies on data

•Has the potential to change what we do as CPAs

MACPA’s XBRL project

•Learn about XBRL

•Impacts our members

•Leverage the technology internally to improve our speed, processes and capability

Overview

•Map Accounting Data to XBRL Global Ledger

•Subsidiary closing entry•Extend the GAAP Taxonomy•Use the XBRL GL Accounting Data

▫GL to GAAP▫KPI Analysis – Excel XML import▫Financial Scoreboard – batch files/GUI

Mapping

•Use SQL to retrieve accounting data▫What information do we need?

•Use functions to facilitate movement of data

•Map – Account info, journal entries, audit rollup groups, KPI’s

Accounting Data

XBRL GL Data

Excel XML Import

Excel Pivot Table

Subsidiary Closing Entry

•Differences due to:▫BLI Closing Entry

•Use Global Ledger to ‘reverse’ the closing entry

•No data in the accounting system is affected

•Reversing Journal Entry is easily pulled containing full detail in GL

Reversal of Closing Entry•

Reversing Entry in Excel

Extending GAAP

•Use GAAP Commercial & Industrial as entry point

•Add FASB References•Create a dimension

▫Dues▫Courses

GAAP Extension

Use the Data•XBRL Global Ledger – SRCD Module

▫Facilitates the link between GL and FR▫Key Component of GL

•KPI Analysis▫Excel Pivot tables

•Financial ScoreBoard▫Second Mapping▫Batch Files/Graphical User Interface

Outlook• Improve mappings - Global Ledger can represent much

more than just general ledger – use it to its max potential!▫ Transaction level▫ Multiple databases

• Database integration▫ Dynamics▫ Payroll▫ AM4▫ SalesForce

• Audit Schedules/worksheets• Financial Dashboard – Own your Data• Automated 990 form generation

What did Global Ledger Do?

•Automated generation of financial statements

•Automated KPI analysis of revenue/expense

•Automated Financial ScoreBoard package•Drill down from audit rollup to underlying

transactions•“Ownership” of data•Think Global Ledger, Think Internal

SEC Mandates

•Final▫Financial Reports▫Mutual Funds▫Credit Rating Agencies

•Proposed▫Extractive Industries▫SWAPs

Registration and Regulation of Security-Based Swap Execution Facilities

SEC (Continued)•2011 Taxonomy

▫FASB responsibility▫Incorporation into exposure drafts

•Year 3▫500 -> 1700 -> 10,000▫IFRSConcernsReaction: HOT OFF THE PRESSES!!

▫End of limited liability for Group 1

SEC (Continued)

SEC (Continued)

Other Mandates

•Ongoing mandates in US (FDIC), Belgium, Chile, China, France, Germany, India, Israel, Italy, Japan, Korea, Spain and others

•Inline XBRL at HMRC; also Denmark, Ireland, elsewhere▫The ___ of HTML and the ___ of XBRL

SBR•SBR movement: ▫Primary goal: Reduced compliance burden

▫But also:Greater efficiencies, communications, transparency

▫NL, AU, TW, SP, UK, et al▫Moving from option to mandate

Europe

•Banking sector▫Former CEBS now EBA▫Basel II

•Insurance sector▫European Insurance and Occupational Pensions Authority (EIOPA)

Assurance•SOP 09-1: Agreed upon procedures•Next step: Principles and Criteria

▫http://www.aicpa.org/InterestAreas/AccountingAndAuditing/Resources/XBRL/DownloadableDocuments/FINAL-ED-XBRL-Principles-and-Criteria.pdf

▫Hot off the presses!

Tooling

•From outsourced to in-house▫Clarity FSR▫WebFilings

•To open source▫www.arelle.org

•To embedded▫MACPA story

XBRL Global Ledger

•The touch point to transactional standards

•The Seamless Audit Trail•Outreach

▫OMG, EDMC▫OCEG▫HIMSS and Medical Banking Project▫US Government space

•Research: Momentum Accounting (K. Wright)

Technical

•Formal modelling•Many updates and refinements

•Data types and Units of measure

Events•XBRL US, Nashville in Septemberhttps://events.capsllc.net/xbrl2011/welcome

•XBRL International XII▫Brussels (just concluded)▫Montreal in October▫Abu Dhabi in the Spring.

  Questions?For more information:skip@macpa.orgjh55424@gulls.salisbury.edueric.e.cohen@us.pwc.com

http://www.altova.com/documents/MACPA_Low.pdf Altova - MACPA XBRL Case Study

XBRL Resources:http://www.xbrl.comhttp://www.cpasuccess.com/xbrlhttp://www.xbrlplanet.org/http://xbrlnetwork.ning.com/http://www.altova.com

Skip Falatko, CPADirector of Finance

Maryland Association of CPAsBusiness Learning Institute

(443) 632-2301E-mail skip@macpa.org

Twitter: www.twitter.com/skipfalatkoLinked-In: http://www.linkedin.com/pub/skip-falatko/4/14b/332

Web http://www.macpa.org

Blog http://www.cpasuccess.comhttp://www,bizlearningblog.com

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