Sap Insider Webinar With Deloitte 10dec09 Final

XBRL is coming
Is your company ready?

Scott Rosenfelder
Director - AERS Technology & Knowledge Management, Deloitte & Touche LLP

Philip Mugglestone
Director - Solution Marketing, SAP

Jennifer Maddox
Director - Solution Marketing, SAP

December 10, 2009

Agenda

1. The impact of XBRL on group financial reporting
2. Overview of SAP® BusinessObjects™ XBRL Publishing by UBmatrix
3. Demonstration
4. Summary and next steps

© SAP 2009 / Page 2

Agenda

3. Demonstration

© SAP 2009 / Page 3

XBRL Basics

XBRL (eXtensible Business Reporting Language) is a
language for electronically communicating business and
financial data

• Based on XML, a widely-used Internet standard

• Uses standardized “tags” that correspond to concepts and
information included in financial reports

• Facilitates automated retrieval and analysis of financial data

© 2009 Deloitte Touche Tohmatsu

The Benefits of XBRL in a data world

Improves efficiency and reduces cost of data collection and analysis

• Move from static, text-based data to “interactive data” that can be
dynamically searched and analyzed

• Reduces or eliminates error-prone manual data entry

• Enables high value analysis of data vs. low value compilation of
data

Simplifies comparison of financial and business performance across
companies, reporting periods and industries


Benefits of XBRL in business reporting

Common goals of many corporate finance functions map directly to the potential
benefits of XBRL which companies may consider leveraging for their business
reporting processes

Common goals for a corporate
finance function:

• Reduced costs Potential XBRL benefits
• Cost savings, efficiency, and
• Stronger internal controls
improved accuracy and reliability
• Timely and accurate data • Transparency
• Standardized systems, business • Enhanced business reporting
processes and data elements and standardization

• Seamless data exchange • Paperless environment
between business units • SOA architecture for
interoperability


The SEC Mandate

The SEC published rules requiring the use interactive data to
improve financial reporting on April 13th, 2009
Highlights of the ruling:
• Require most registrants to submit XBRL-formatted financial reports and
schedules as an exhibit

• Requirement is phased-in over three years, with largest registrants
having to provide interactive data in filings for periods ending on or after
June 15, 2009

• 30-day grace period for each initial filing of interactive data

• For most registrants, the first XBRL filing will be 10-Q, 20-F or 40-F
‒ Registrants do not have to start with the 10-K


Then SEC Phase in Timeline

Registrant Category Effective Date
Large accelerated filers

• Domestic and foreign
YEAR 1 • Filing using U.S. GAAP, and Periods ending on or after
• Having a public float> June 15, 2009
$5 billion

Large accelerated filers

• Domestic and foreign
• Filing using U.S. GAAP, and Periods ending on or after
YEAR 2 • Having a public float between June 15, 2010
$700 million and $5 billion

Most other registrants including

• Smaller companies filing using Periods ending on or after
YEAR 3 U.S. GAAP
June 15, 2011
• Foreign private issuers
reporting using IFRS


Some Filing results so far and challenges ahead…
• FY ending 6/15/2009
‒ Mandated Participants - Public companies using US-GAAP ("accelerated filers") with >$5B
market capitalization
‒ Result - 427 companies - 871 10-Q filings so far

• FY ending 6/15/2010
‒ Mandated Participants - All other "large accelerated filers“ using US-GAAP
‒ Expected Result – an additional 1500-2000 companies

• FY ending 6/15/2011 and thereafter
‒ Mandated Participants - All public companies, including “foreign private issuers” using
either IFRS or US-GAAP
‒ Expected Result – an additional 10,000 companies

• Mandate on Tagging Detail
‒ FS footnotes and schedules initially tagged individually as a block of text
‒ After a year of this, filers also required to tag the detailed quantitative disclosures
‒ Estimated impact – 15X to 20X increase on the number of tagged data elements
(and size of filing)


Challenges seen today
• Accounting is the most critical skill even though XBRL is a computer
language
– Identifying the appropriate tag is the most critical step which can be
challenging due to the voluminous nature of the US GAAP taxonomies
– There is a lack of guidance on tagging decisions and whether or not to create
an extension
– The SEC has also included over 200 technical rules in the EDGAR Filer
Manual (EFM) on XBRL filings

• Experience and lessons learned from first round of filers indicated the
significant needs for registrants to perform their due diligence on XBRL
filings instead of completely relying on filing agents for tagging decisions
and accuracy
– Potential lack of reviews and validations resulted in errors in XBRL filings
– Companies working with certain service providers are only reviewing Excel
deliverables not the XBRL submissions


Challenges seen in the process so far
Process Errors noted and/or feedback Key lessons learned

Mapping • There is a lack of guidance around the mapping process for • Mapping requires the most judgment
element selection and element extensions
• Element selection
• Expected challenges with year two detailed footnotes mapping
• Extension creation - EDGAR Filer
Manual requirements, Leading
practices

• Use of correct version of taxonomy

Extending • Custom element created • Custom extensions limit comparability
• When a core element exists
• When a customized label would suffice • The creation of an incorrect linkbase
can have serious ripple effect
• Lack of customized label on correctly mapped core element consequences through the XBRL
documents
• Incorrect presentation/calculation information in extension
linkbases

Tagging • Incorrect data entry • Errors in tagging result in incorrect
• Tagging incorrect amounts, duplicate tagging, omission of data flowing to financial data
data from the tagging, etc. consumers
• Data attribute errors
• Decimals – rounding errors • Some tagging issues may be attributed
• Signs - Data entered with improper sign to the software tools used
• Context errors
• Duplicate/unused contexts • Reviewed and updated methodology to
• Complexity of detailed footnote tagging and rendering adapt to the year two challenge

XBRL - The Bigger Picture

XBRL can be leveraged to add value beyond financial reporting
• Enhancing data quality and transparency
• Facilitating more effective and timely business decisions
• Streamlining business reporting processes and resources

The SEC is seeking to leverage XBRL in a range of additional areas in
addition to corporate financial reporting, including:
• The disclosure of key mutual fund information
• Certain reporting by credit rating agencies to be migrated to an XBRL format
• XBRL as an enabling component of the SEC new IDEA reporting platform
• Application of XBRL for reporting related to asset backed securities and the credit
market

XBRL is being leveraged more in qualitative reporting, such as ecological
impact reporting


XBRL - The Bigger Picture

XBRL is part of a larger trend towards convergence and
globalization of reporting standards

• International Accounting Standards Board (IASB)
‒ The IASB has released an expanded IFRS XBRL Taxonomy
• It is expected to support the broad adoption of XBRL for IFRS based reporting

• International Coordination
‒ The SEC, IASB, and JFSA are taking steps to align their XBRL initiatives and taxonomy
development efforts

• National e-Government XBRL Initiatives
‒ Momentum is building around large scale “national” XBRL projects
• Australia’s Standard Business Reporting (SBR) project
• The Netherlands National Taxonomy Project (NTP)
• These projects aim to improve efficiency and reduce costs borne by companies and governments
‒ Exchanges, regulators, and government agency activities
• Canada, Korea, the UK and China


XBRL - Moving Forward on XBRL

Start taking steps to move forward on XBRL now

• Obtain understanding of XBRL and the new US GAAP Taxonomy

• Understand where your company falls in the SEC’s phase-in plan for
XBRL-based financial reporting

• Get connected to the decisions being made around the implementation of
XBRL reporting tools and processes

• Establish a plan for financial reporting teams and IT groups involvement in
defining a sustainable process for converting and furnishing XBRL
financials


Agenda

3. Demonstration

© SAP 2009 / Page 15

SAP BusinessObjects XBRL Publishing by UBmatrix

Streamlining XBRL publishing for business users

Speed
Quickly navigate taxonomies and map data
Easy to use drag-and-drop mapping environment
Fast, thorough validation of generated XBRL
documents
Simplicity
Works with EPM solutions and SAP Business Suite
Link to and import disclosures stored in Microsoft Word
Insulates users from dealing with complex XBRL syntax
Flexibility
Easily extend published XBRL taxonomies
Complies with the XBRL 2.1 specification
Supports basic and block‐text footnotes, dimensions,
and business rules

© SAP 2009 / Page 16

Speed

Quickly navigate taxonomies and map data

Taxonomies can be large and complex
containing thousands of elements
During mapping, search and filter dialogs A
allow business users to quickly navigate variety
of
the selected taxonomy useful
search
Browse the hierarchy
options
Full and partial search of taxonomy
concepts and labels with smart filtering
Separate views to display presentation,
calculations, and definition
Element detail view helps confirm match

Synchronized views help users locate
financial elements
Search results automatically interact
with the hierarchy tree

© SAP 2009 / Page 17

Speed

Easy to use drag-and-drop mapping environment

Rapid and re-usable mapping
of financial statements and
other Excel-based reports
Drag-and-drop to map:
Concepts
Contexts
Units (monetary, shares, etc.)

Reports can be refreshed
SalesRevenueNetGoods
without having to re-map
Map once
Re-use often

© SAP 2009 / Page 18

Speed

Fast, thorough validation of generated XBRL documents

Validation encompasses both syntax
and semantics
Appropriate numeric values
Does the Balance Sheet balance?

Reports ensure the mapping process
is complete, highlight inconsistencies,
and ensure compliance
Incomplete Mappings Report identifies
partially mapped cells
Calculation Trace Report helps diagnose
errors and inconsistencies by viewing
what was found versus what was
expected
Full Mappings Report provides a
comprehensive list of mappings

© SAP 2009 / Page 19

Simplicity

Works with EPM solutions and SAP Business Suite software

SAP-approved XBRL reporting tool
that’s integrated with our financial
consolidation applications and SAP
Business Suite
SAP BusinessObjects Planning
and Consolidation
SAP BusinessObjects Financial
Consolidation
SAP Business Suite (including
SEM-BCS)

Via a common user interface
Microsoft Excel

© SAP 2009 / Page 20

Simplicity

Link to and import disclosures stored in Microsoft Word documents

Disclosures are a key part of financial
and compliance reporting
Financial table footnotes
Management discussion & analysis
Required by the U.S. SEC

Many organizations author this content
in Microsoft Word
Ability to attach Word documents and
reference content from each document
This approach offers the best of both
worlds
Leaves financial report authoring in a
friendly Excel environment
Narrative can be authored using Word

© SAP 2009 / Page 21

Simplicity

Insulates business users from having to deal with complex XBRL syntax

XBRL syntax is complex and
not business user-friendly
Comprehensive user interface
avoids the need for business
users to work directly with
XBRL syntax
XBRL instance documents are
created by the application

© SAP 2009 / Page 22

Flexibility


Many organizations wish to extend their
XBRL reporting beyond the standard
taxonomies
Provide extra information to investors to
help differentiate from competitors

Design and extend XBRL taxonomies
using simple drag-and-drop editing
functions
Business rules editor
Define relationships across extended links
and link base types

Many of the world's XBRL taxonomies
have been modeled with the application
IFRS, US GAAP, UK GAAP, FINREP
Belgium, KOSDAQ, CRAS etc.

© SAP 2009 / Page 23

Flexibility

Complies with the XBRL 2.1 specification

Full compliance with the latest XBRL
standards
XBRL 2.1
Dimensions 1.0 (XBRL.org candidate
recommendation)
Dimensions Aggregation 1.0 (XBRL.org
public working draft)
XBRL Formulas 1.0 (working draft)
Financial Reporting Taxonomy
Architecture (FRTA) 1.0
Financial Reporting Instance Standards
(FRIS) 1.0 (XBRL.org public working
draft)

Supports any taxonomy in use today

© SAP 2009 / Page 24

Flexibility

Supports basic and block‐text footnotes, dimensions, and business rules

Basic and block‐text footnotes
User‐friendly method of capturing both
plain text and block‐text/HTML (or
formatted) XBRL footnotes
Footnotes can be reused multiple times
Multiple footnotes can be associated
to a given reporting element

Dimensional taxonomies, instance
documents, and aggregation
Business Rules
Supports XBRL Formula 1.0 and
Function 1.0 specifications
Can specify formula expressions either
in Excel-styled syntax or in the 2005
Draft XBRL Formula 1.0 syntax

© SAP 2009 / Page 25

Summary

Benefits

Saves time and money
Speed
Quickly navigate taxonomies and map data Faster and easier to create
Easy to use drag-and-drop mapping environment financial statements suitable for
Fast, thorough validation of generated XBRL documents electronic submission to
regulators

Confidence and compliance
Simplicity
Works with EPM solutions and SAP Business Suite Ensures filings are accurate,
complete, and meet all current
Link to and import disclosures stored in Microsoft Word
regulatory requirements.
Insulates users from dealing with complex XBRL syntax Enables faster and more
accurate audits at lower cost

Supports the “last mile” of
Flexibility finance
Complies with the XBRL 2.1 specification Streamlines consolidation,
Supports basic and block‐text footnotes, dimensions, and reporting, and publishing
business rules processes without sacrificing
data quality

© SAP 2009 / Page 83

Next steps

See www.sap.com/epm for:

Solution briefs
Streamlining XBRL publishing for business users
Accelerating the financial closing process
Optimizing the Transition to IFRS
Efficient Business Planning and Consolidation
Financial consolidation and reporting
Financial information management
Peer-to-peer intercompany reconciliation

White papers
The Financial Close - Optimizing Performance and
Driving Financial Excellence
Improving Intercompany Reconciliation for a
Faster Close
Streamlining Your Conversion to IFRS

Recorded demos
Streamlining XBRL Publishing for Business Users
Accelerated Group Financial Close

© SAP 2009 / Page 84

Questions

Questions

How to contact us

Scott Rosenfelder Philip Mugglestone Jennifer Maddox
srosenfelder@deloitte.com philip.mugglestone@sap.com Jennifer.maddox@sap.com

© SAP 2009 / Page 85

Sap Insider Webinar With Deloitte 10dec09 Final

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