xbrl and the macpa - summit presentation

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 GAAPKPI Analysis �– Excel XML importFinancial Scoreboard �– batch files/GUI

Mapping

�• Use SQL to retrieve accounting dataWhat 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

DuesCourses

GAAP Extension

Use the Data�• XBRL Global Ledger �– SRCD Module

Facilitates the link between GL and FRKey Component of GL

�• KPI AnalysisExcel Pivot tables

�• Financial ScoreBoardSecond MappingBatch Files/Graphical User Interface

Outlook�• Improve mappings - Global Ledger can represent much

more than just general ledger �– use it to its max potential!

Transaction levelMultiple databases

�• Database integrationDynamicsPayrollAM4SalesForce

�• 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 ReportsMutual FundsCredit Rating Agencies

�• ProposedExtractive IndustriesSWAPs

Registration and Regulation of Security-Based Swap Execution Facilities

SEC (Continued)�•2011 Taxonomy

FASB responsibilityIncorporation into exposure drafts

�•Year 3500 -> 1700 -> 10,000IFRS

ConcernsReaction: HOT OFF THE PRESSES!!

End of limited liability for Group 1

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 alMoving from option to mandate

Europe

�•Banking sectorFormer CEBS now EBABasel II

�•Insurance sectorEuropean 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.pdfHot off the presses!

Tooling

�• From outsourced to in-houseClarity FSRWebFilings

�• To open sourcewww.arelle.org

�• To embeddedMACPA story

XBRL Global Ledger

�• The touch point to transactional standards�• The Seamless Audit Trail�• Outreach

OMG, EDMCOCEGHIMSS and Medical Banking ProjectUS 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 XIIBrussels (just concluded)Montreal in OctoberAbu Dhabi in the Spring.

Questions?For more information:[email protected]@[email protected]

http://www.altova.com/documents/MACPA_Low.pdfAltova - 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 [email protected]

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