XBRL Fundamentals
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Transcript of XBRL Fundamentals
XBRL Fundamentals
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• Extending XML to XBRL• Introduction to XBRL
documents• XBRL Taxonomy
– Schema– Linkbases
• Building taxonomy
In this session…
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EXTENDING XML TO XBRL
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XML – eXtensible Mark-up Language
XML is a key Internet standard for transmission and interoperability
• Electronic transmission is newer than electronic storage• With the growth of the Internet, transmission of data is
exploding• XML uses "tags" to define data and is self-descriptive• XML has been developed by w3 consortium• Designed to describe, create, structure, store and
transmit information• Processing gets shifted from applications to data• Data stored in hierarchy• Data stored in simple easy to use xml files
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Extending XML - XBRL
• XBRL combines hierarchical xml data with relationships and references between the data points.
• It uses Xlink technology of linking xml files
• It links the data xml files with various other files containing definitions, presentation, calculation, references relationships
• XBRL data files are a set of xml and xsd files.
DataData with tags
hierarchy
Data with tags,Hierarchy &
Relationships
Primitive Data Formats
XML Data Formats XBRL Data Formats
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XML XBRL Example
The tags are not fixed and standard.
Tags defined in the schema document are standard for taxonomy.
Com A: Net SalesCom B: Net turnover
Taxonomy : SalesRevenueNet
XML defines hierarchy of the tags, which needs to be processed by the application
XBRL defines relationships using a standard approach
<GrossProfit> <TotalRevenue/> <TotalExpenditure/></GrossProfit>
GrossProfit TotalRevenue TotalExpenditure
1 1-1
XML is validated with a single xsd file for data type and occurrence validations.
XBRL data files are validated with xml linkbase files & schema files
Total Expenditure is to be subtracted from Total Revenue. This is build at the software level
Software automatically understands that Total Expenditure needs to be subtracted from Total Revenue
XML data files have no standard format
XBRL data files have a standard format
User defined formats Standard format for defining context units and facts.
Express single Relations Express Multiple Relations Only presentation relationship
Other additional relationships
XML Vs. XBRL
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XBRL DOCUMENTS
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XBRL Taxonomy & Instance Architecture
XBRL Data
XBRL Data Definition
XBRL Data Relationships
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ABC Company Ltd. Rs.(000’s)
Balance Sheet as at 31-03-2009 A Segment
B Segment
C Segment
Group
Fixed assets 30 35 33 98
Investments 18 22 20 60
Deferred tax assets 7 8 12 27
Current assets:
Cash and cash equivalents 13 16 23 52
Sundry debtors 17 18 18 53
Inventories* 20 21 19 60
Total current assets 50 55 60 165
Total assets 105 120 125 350
* Includes inventories on acquisition of textile segment
TaxonomyInstance
document
XBRL documents
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• Recommendation – 2003-12-31 corrected Errata – 2008• Some technical files
• xbrl-instance-2003-12-31.xsd• xbrl-linkbase-2003-12-31.xsd• xl-2003-12-31.xsd• xlink – 2003-12-31.xsd
XBRL 2.1 Specification
• More than 200 test sets to verify the applications process the taxonomy correctly
Conformance suite
• Financial reporting taxonomy architecture• Financial reporting instance standards• Guidelines on best reporting practices• Both have different conformance suites
FRTA and FRIS
Overview of XBRL Specifications
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• Recommendation – 2006-09-18• Modular extension of 2.1 where in dimensions are used• Some technical files• xbrldt-2005.xsd• xbrldi-2006.xsd
Dimension specification
• Recommendation – 2009• Modular extension of 2.1 where in formulae are used• Number of technical files
Formula specification
Overview of XBRL Specifications
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TAXONOMY
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Taxonomy word is derived from:tassein–classificationnomos–law/science
Taxonomy means “Science of Classification”
• In XBRL, Taxonomy is “systematic classification of business and financial terms”
Taxonomy
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Role of taxonomies
Standardization
Facilitates Understanding of the Data System
Enables Reuse, Data Exchange and Comparisons
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XBRL Taxonomy is made up of –
Schema Dictionary of business and financial terms,
along with their XBRL properties
Linkbases Interrelationships amongst the terms
defined in the schema
Taxonomy Components
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• Similar to XML schema• File with .xsd extension• Contains attributes describing the
whole document• Contains the definition of financial
terms and their attributes• Refers to the Linkbases
Schema
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Schema
Namespace– Purpose of declaring Namespace– Namespace Prefix
Indian GAAP Taxonomy• Namespace : http://xbrl.in/in-gaap/2009-06-30• Prefix : in-gaap
SEBI MF Taxonomy• Namespace : http://xbrl.in/sebi/2010-02-20• Prefix : sebi
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MeaningAn element is a business or a financial concept which is defined according to XBRL specifications.
Example– Data points reported in Financial Statements– Data points reported in Notes to Accounts
XBRLElement
Financial Reporting Concept
Basic Attributes
RelationshipTo other
Elements & Information
Schema : Element
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element name• According to LC3 Rules• Preferable to have Style Guide• Some of the principles that should be followed while
defining the elements
element id• Element id and element name should be unique• Best practice according to FRTA is to use prefix_name
Concept Element Name Element ID
Loans and Advances LoansAdvances frs-gp_LoansAdvances
Short Term Borrowings ShortTermBorrowings us-gaap_ShortTermBorrowings
Cash and Cash Equivalents CashCashEquivalents ifrs-gp_CashCashEquivalents
Schema : Element
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Schema: Element Attributes
Attributes• Data Type• Period Type• Balance Type• Abstract• Nillable• Substitution Group
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Element Attribute :Data Type
Data value that is allowed for element defined
–Monetary–String–Shares–Decimal–Pure–Other
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Data Types – Few examples
Data type Examples
Monetary Sales
Current liabilities
Reserves
String Name of employee
Inventory policy
Shares Basic number of shares outstanding
Shares held by managing director
Decimal Office floor area
Number of employees
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Element Attribute : Period Type
Attribute that specifies whether anelements is measured “As on a point of time” or “Over a period of time”
• Instant• Duration
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Element Attribute : Balance Type
Type of balance that is applicable to the
Monetary item –Debit–Credit
Exceptions
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Element Attribute : Abstract
Explains whether element will hold value in the instance documents
– ‘abstract = false’– ‘abstract = true’
Usage
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Element Attribute : Nillable
Determines whether the element is mandatory to be reported or not
– ‘nillable = false’– ‘nillable = true’
By default, nillable is defined as ‘true’
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Element Attribute : Substitution Group
• Item– Element representing single fact
• Tuple– Element representing multiple facts
• Dimension– Element representing dimensional information
• Hypercube– Element grouping dimensional information
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Schema: Element Attributes
• Defines concepts uniquely in the way system can interpret
Element name and element ID
• Values expected for concepts (monetary, percentage, shares etc.)
Data type
• When the concept is measured – as at a point of time or over a period of time
Period type
• Determines whether the element is mandatory
Nillable
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Schema: Element Attributes
• Accounting balance of concept i.e. debit or credit
Balance type
• Determines whether an element can or cannot hold value in instance document
Abstract
• Classes as defined by specification to enable system understand, process and validate information.
Substitution group
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Schema
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For the “Element :Outstanding Expenses”, what would be the value of the following attributes?
DataType : _____ (String, Shares, Monetary)
SubsitutionGroup : _____ (Item, Tuple)
BalanceType : _____ (Debit, Credit)
periodType : _____ (Instant, Duration)
Nillable : _____ (True, False)
Abstract : _____ (True, False)
Quiz Time!!!
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For the “Element :Number of equity shares outstanding”, what would be the value of the following attributes?
DataType : _____ (String, Shares, Monetary)
SubsitutionGroup : _____ (Item, Tuple)
BalanceType : _____ (Debit, Credit)
periodType : _____ (Instant, Duration)
Nillable : _____ (True, False)
Abstract : _____ (True, False)
Quiz Time!!!
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For the “Element :Interest expense”, what would be the value of the following attributes?
DataType : _____ (String, Shares, Monetary)
SubsitutionGroup : _____ (Item, Tuple)
BalanceType : _____ (Debit, Credit)
periodType : _____ (Instant, Duration)
Nillable : _____ (True, False)
Abstract : _____ (True, False)
Quiz Time!!!
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State whether the following statements are true or false
1. Earnings per share is normally defined as having share item data type
2. Number of employees in company is defined as abstract=false
3. Element name consists of a prefix followed by an underscore followed by element id.
4. Accumulated depreciation will have period type as duration
Quiz Time!!!
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Exercise
For the given sample set of data, define the elements and their XBRL properties in the schema file
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LINKBASES
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Linkbases are taxonomy components whichdefine relationships between elements and
linkthem to external resources
• Interrelationships between elements• References to regulatory material• Human readable definitions of elements• Six types of linkbases
Linkbases
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Types of Linkbases
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•Presentation Linkbase•Calculation Linkbase•Definition Linkbase•Formula Linkbase
Describing Relationship
amongst elements
•Reference Linkbase•Label Linkbase
Linking to external sources
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Extended links :
• Logical grouping of elements. • Linkbase is a collection of extended links
Locators :
• Point to the concepts that are to be related
Arc :
• Used to connect two or more locators
Arc role:
• Functionality of the arc joining the locators
Linkbase : Basic terminology
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AssetsAbstract
FixedAssetsCurrentAssets
Abstract
Cash
AccountsReceivable
Inventories
CurrentAssets
Assets
Element Order
AssetsAbstract FixedAssets 1
CurrentAssetsAbstract 2
Cash 1
AccountsReceivable 2
Inventories 3
CurrentAssets 4
Assets 3
Present Structure Headers are abstract Preferred role
Presentation Linkbase
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• Weights = +1 / -1• Cross context calculations• Opposite balance attributes
– credit element + credit element– credit element –debit element– debit element + debit element– debit element –credit element
Assets
FixedAssets CurrentAssets
Cash
Accounts
Receivable
Inventories
Element Order Weight
Assets FixedAssets 1 1
CurrentAssets 2 1
Cash 1 1
AccountsReceivable 2 1
Inventories 3 1
Calculation Linkbase
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Element Order
AssetsAbstract FixedAssets 1
CurrentAssetsAbstract 2
Cash 1
AccountsReceivable 2
Inventories 3
CurrentAssets 4
Assets 3
Element Order Weight
Assets FixedAssets 1 1
CurrentAssets 2 1
Cash 1 1
AccountsReceivable 2 1
Inventories 3 1
Presentation Link Calculation Link
Presentation v/s Calculation linkbase
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• Defines additional relationships
• If dimensions are required to be modeled in the taxonomy, it is done with the definition link.
• Four standard types of roles (Other than dimensional)
o General – Specialo Essence – Aliaso Requires – Elementso Similar – Tuples
Definition Linkbase
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• Some elements can be unreadableStatementThatFinancialStatementsAndCorrspondingFiguresForPreviousPeriodsHaveBeenRestatedForChangesInPurchasingPower
• Element labels
Financial statements restated for purchasing power changes
Differentiation done by language attribute of XML
Differentiation done by xlink:role
Multilingual
Multicontextual
Label Linkbase
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Multilingual labels:
Assets, total – EnglishActifs, total – FrenchActivos, total – Spanish
label Examples
standard label Earnings (Loss) in Foreign Currency
terse label Earnings (Loss) Forex
verbose label Earnings (Loss) in Foreign Currency
of the Entity
positive label Earnings in Foreign Currency
negative label Loss in Foreign Currency
total label Total Earnings (Loss) in ForeignCurrency
negated label -
period start label Cash and Cash Equivalents,Beginning Balance
period end label Cash and Cash Equivalents, Ending
Balance
documentation -
Multi contextual labels:
General reserve, beginning balance
General reserve, ending balance
Label Linkbase
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• Store the source that describe the associated external regulation or standard• Present relationship between elements and external regulations or standards• Relates business concepts to Metadata
definitionRef
• Reference for defining the meaning of the element
disclosureRef
• Reference for disclosure as required by the regulation or the standard relating to the concept.
presentationRef• Reference to a document which explains
how and where the element should be presented in terms of its placement and labelling
measurementRef
• Reference provide explanations about what determines the value of an element and how it should be calculated
commonPracticeRef
• Reference for common practice disclosure relating to the concept.
Reference parts
Use
IssueDate Issue date of the standard or interpretation
Name Name of authoritive literature eg. IAS, IFRS etc
Number Number of the standard or interpretation
Section Sections of standard or interpretation.
Paragraph Paragraph in the standard
Subparagraph Subparagraph of a paragraph
Clause Subcomponent of a sub paragraph
Subclause Subcomponent of a clause in a paragraph
Reference Linkbase
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Linkbase Arc role used
Presentation parent-child
Calculation summation-item
Definition* general-special
essence-alias
similar-tuples
requires-elements
Label concept-label
Reference concept-reference
* Other than for dimensional relationships
Linkbases : Arcroles
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Linkbases
Presentation Linkbase
• Defines how concepts should be presented & displayed
Calculation Linkbase
• Arithmetical relationship between the concepts
Definition Linkbase
• Defines additional relationship between elements
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Linkbases
Formula Linkbase
• Advanced and user defined mathematical and logical relationships between concepts
Label Linkbase
• Provide human readable information about concepts
Reference Linkbase
• Contains the references to literature
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Quiz Time!!!
Fill in the blanks –
1. The arc role used in presentation linkbase is _________.
2. ________ plays a very important role in calculation linkbase.
3. In order to establish a relationship between two similar concepts _______ arc role is used.
4. _________ plays a very important role in presentation linkbase.
5. The elements in calculation linkbase must have identical ______ type.
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Exercise
For the same given sample set of data, define the calculation, presentation and label linkbase
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BUILDING TAXONOMIES
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Steps in taxonomy building
Steps in taxonomy building• Analysis and Element identification• Data modeling and taxonomy
designing• Validating and Testing taxonomy
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Analysis and Element identification
• Understanding the business requirements
• Analyzing the relevant regulatory literature and guidelines to understand the reporting requirements– E.g. In case of Indian GAAP taxonomy, the Companies Act,
Accounting standards, Listing agreements need to be analyzed
• Identifying the data elements to be reported
• Rationalizing the reporting requirements– Same elements appearing in the different reports need to
be defined only once
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Data modeling and taxonomy designing
• Defining the XBRL properties of the elements
• Defining the interrelationship between the elements identified
• Structuring the taxonomy as per the XBRL specifications– Nature and properties of elements– Grouping the elements– Using dimensions
• Creating the taxonomy documents
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Validating and Testing taxonomy
• Validating the taxonomy– XBRL Specifications– Elements and the interrelationships
• Testing the taxonomy– Testing for fitness– Creating sample instance documents
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Taxonomy Designing Team
Team ideally comprises of – Domain experts– Technology experts
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Few XBRL Taxonomies around the world..
• US-GAAP 2009 / 2010– Financial Reporting to US SEC, Mutual Fund Risk Return Summary Taxonomy
• IFRS 2010– Represents IFRS 2010
• FinRep & Corep– Financial Reporting & BASEL II based Reporting in CEBS*
Indian Taxonomies• Indian GAAP
– C&I – Banking
• RBI – Basel II– Liquidity Returns (Form A)– Currency Position (GPB)
• SEBI– Mutual fund taxonomy
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FINANCIAL REPORTING TAXONOMIES ARCHITECTURE (FRTA)
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• Financial Reporting Taxonomies Architecture
• Describes the architecture of financial reporting taxonomies
• It also provides a guidance for designing and developing taxonomies
FRTA - Overview
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Layers of the Financial Reporting Taxonomy Architecture
XML, Namespaces, XML Schema and XML Linking Language (Xlink)
Concept Layer:Elements, links, arcs, labels, references and tuples
Relationship Layer:Usage of definition, calculation and presentation for modeling
Extensions Layer:Guidance on how to organise sets of taxonomies and linkbases
Discoverable Taxonomy Set Layer:Features and properties of taxonomy schemas and linkbases
Structure of FRTA
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Schema must define only one concept for each separately defined class of facts
FRTA : Rules for Concepts
Contextual and measurement information Must not result in different elements in a taxonomy
Label Camel Case ConcatenationElement names MUST be based on an appropriate presentation label for the element.
Label changes in subsequent version of the taxonomy, should not result in the change of element name.
First character of the element should not be underscore (_).
The first character of the element name must be capitalized.
Connective words like and , the, for, which can be omitted if required.
Special characters should not be used: ( )*+[]?\/^{}|@ # % ^ = ~ ` “ ‘ ; : , <> & $ ₤ €
Element names should not exceed 256 characters
Concept names should adhere to the LC3 convention
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FRTA : Rules for Concepts
Element declarations must contain an “id” attribute beginning with prefix followed by an underscore and then element name
The value of the “nillable” attribute should be true for all concepts
Monetary concept declarations must use the balance attribute
All documentation of a concept must be contained in XBRL linkbases
A concept must have a label with the standard label role
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A linkbase may contain any number of sets of extended-type links partitioned by role
A concept meant to be ordered among its siblings must have a parent-child presentation relationship from its parent concept.
Child having the same parent in extended links with the same extended link role should provide preferred labels.
FRTA : Rules for Presentation Linkbase
Abstract elements may be used as a heading to group concepts for presentation.
In movement analysis only one element must be defined for beginning, adjusted and ending balances , each with a different preferred label
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All concepts having additive relationship in all equal contexts should have calculation relationships.
Alternative calculation relationships for the same item must be in extended-type links with distinct roles
Taxonomies should define an extensive set of subtotal concepts to limit the extensions
FRTA : Rules for Calculation Linkbase
The declarations of elements in calculation linkbase must have identical values of the periodType attribute.
The source & target concepts of summation-item relations must be distinct
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THANK YOU!!!