What is XBRL? Is it just another compliance burden forced on public companies or a powerful new technology that can change the way financial information is produced and distributed? The Maryland Association of CPAs recently set out to see for oursleves and this presentation includes our findings. We have seen efficiencies in accessing our financial data, moving it into KPI software, and believe it can be used to populate tax filings, produce on-line financial statements and much more. We are also joined by Eric E. Cohen, PWC and one of the founders of XBRL for a global XBRL update including the SEC mandate and SBR projects around the world where XBRL is being used to dramatically reduce teh reporting and compliance burden by businesses to governments. We do think it is a powerful new technology that can reshape the financial reporting supply chain much like barcodes transformed the mfg and distribution supply chains. This presentation was produced by Skip Falatko, Tom Hood IV (Student Intern), and Eric E Cohen (PWC)

1. XBRL
What is it?
What‟s happening with it?

2. The panelists:
• Skip Falatko – MACPA
• Thomas Hood – MACPA student intern
(Salisbury University)
• Eric E. Cohen – PricewaterhouseCoopers &
founding member of XBRL

3. XBRL
•eXtensible
•Business
•Reporting
•Language

4. XBRL
• Open standard tagging language
• In use internationally
• SEC requirement in US
• “Bar coding” of financial
information

5. XBRL tags provide meaning and
context such as……
• McCormick & Company
• Sales Revenue $3,122
• US Dollars
• US GAAP
• Audited
• Year ending November 30, 2010

6. 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

7. 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

8. 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

9. MACPA’s XBRL project
• Learn about XBRL
• Impacts our members
• Leverage the technology internally to
improve our speed, processes and
capability

10. 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

11. 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

12. Accounting Data

13. XBRL GL Data

14. Excel XML Import

15. Excel Pivot Table

16. 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

17. Reversal of Closing Entry
•

18. Reversing Entry in Excel

19. Extending GAAP
• Use GAAP Commercial & Industrial as
entry point
• Add FASB References
• Create a dimension
▫ Dues
▫ Courses

20. GAAP Extension

21. 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

22. 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

23. 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

24. SEC Mandates
• Final
▫ Financial Reports
▫ Mutual Funds
▫ Credit Rating Agencies
• Proposed
▫ Extractive Industries
▫ SWAPs
 Registration and Regulation of Security-
Based Swap Execution Facilities

25. SEC (Continued)
•2011 Taxonomy
▫ FASB responsibility
▫ Incorporation into exposure drafts
•Year 3
▫ 500 -> 1700 -> 10,000
▫ IFRS
 Concerns
 Reaction: HOT OFF THE PRESSES!!
▫ End of limited liability for Group 1

26. SEC (Continued)

27. SEC (Continued)

28. 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

29. 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

30. Europe
•Banking sector
▫ Former CEBS now EBA
▫ Basel II
•Insurance sector
▫ European Insurance and
Occupational Pensions Authority
(EIOPA)

31. Assurance
• SOP 09-1: Agreed upon procedures
• Next step: Principles and Criteria
▫ http://www.aicpa.org/InterestArea
s/AccountingAndAuditing/Resource
s/XBRL/DownloadableDocuments/F
INAL-ED-XBRL-Principles-and-
Criteria.pdf
▫ Hot off the presses!

32. Tooling
• From outsourced to in-house
▫ Clarity FSR
▫ WebFilings
• To open source
▫ www.arelle.org
• To embedded
▫ MACPA story

33. 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)

34. Technical
•Formal modelling
•Many updates and refinements
•Data types and Units of
measure

35. Events
•XBRL US, Nashville in September
https://events.capsllc.net/xbrl2011/welcome
•XBRL International XII
▫ Brussels (just concluded)
▫ Montreal in October
▫ Abu Dhabi in the Spring.

36. Questions?
For more information:
skip@macpa.org
jh55424@gulls.salisbury.edu
eric.e.cohen@us.pwc.com
Altova - MACPA XBRL Case Study
http://www.altova.com/documents/MACPA_Low.pdf
XBRL Resources:
http://www.xbrl.com
http://www.cpasuccess.com/xbrl
http://www.xbrlplanet.org/
http://xbrlnetwork.ning.com/
http://www.altova.com

37. Skip Falatko, CPA
Director of Finance
Maryland Association of CPAs
Business Learning Institute
(443) 632-2301
E-mail skip@macpa.org
Twitter: www.twitter.com/skipfalatko
Linked-In: http://www.linkedin.com/pub/skip-falatko/4/14b/332
Web http://www.macpa.org
Blog http://www.cpasuccess.com
http://www,bizlearningblog.com