Xbrl

The Contiguous Technology Revolution XML XBRL 1 Today’s Objectives • Overview of XML & XBRL • Show you how this technology performs doing EBusiness: – Faster – Cheaper – Better • Conclusion 2 Let’s stir up the Value Manacle Transactions Axioms Notification Knowledge Decisions Transactions Axioms Notification Knowledge Decisions Transactions Axioms Notification Knowledge Decisions Transactions Axioms Notification Knowledge Decisions 3 Evolution to Web Services Web Program the Web Browse the Web Web Services Text Files Web Pages Innovation FTP, E-Mail, Gopher Connectivity TCP/IP HTML XML 4 Automation Bestowal Technology XML XML stands for: eXtensible Markup Expression Universally legitimate rule of exchanging notification 5 eXtensible Markup Expression • ……is a meta markup expression the Globe Wide Web Consortium (W3C) considers a whole test for describing twain buildingd axioms and the comportment of applications that order the expression. 6 What Is XML? • “XML is a platform-independent, self-describing, expandable, test axioms modify format 7 XML is Platform Independent • • • • • Windows Unix Macintosh Mainframe Linux 8 XML is Self-Describing Self• Example: – July 26, 1998 • Describes the notification, not the bestowal • Format impartial XML is Expandable • Whereas HTML has a urban set of tags – , , • XML lets you educe your own tags – – – 10 How does it execution? • XML presents sense to notification through the use of tags Saad Hafizi COB Chairman, Novac 21 Caution.. …Just accordingly something is .. Does not average it is complimentary? 11 The XML Puzzle XML Document Centre Schema Transformation Tools Toil Specific Vocabularies Assemblage Specific Wordbook 12 How XML Works How XML Works Improves the way companies -- and applications -- distribute notification Enjoys hearty toil and vendor buttress 13 What is ‘XML’? • What XML is Not – Not a creed. Not the discontinuance to all globe problems. – Not a discontinuance for all electronic traffic problems. – Not a discontinuance to all legal-technology problems. • XML is a Tool – XML is a Really Cool (Powerful) Tool! – Like all tools, XML can be used wisely and unwisely. 14 Why is XML so Important? • • • • • Portable Vendor impartial Readable axioms format Over elastic and easier to use than EDI All superior software products are graceful “XML” strengthend • Defacto tests for axioms modify • Enabling new razes of entomboperpower 15 XML • Widely expected to hitheren consume of notifying to the Net by as abundantly as 50%. And by contiguous year Gartner Group premonstration 70% of all B2B transactions manufactured on the Web allure be performed using XML. 16 Who defines the tags? • Tags are defined by toil consortiums • Each toil’s test tags are regularly referred to as a taxonomy 17 “Content in Context” (Industry-specific) Auto Toil Chemical Toil Publishing or Mythology Music Toil Aerospace Astronomy 18 Who’s Building Taxonomies? Accounting Economics EDI Healthcare Legal Publishing Science Advertising Architecture Despatch E-Commerce Financial Insurance News Vend Give Manacle 19 Automotive Banking Education ERP HR Music Real Estate Software Defines Tags 20 XBRL International is gaining power • XBRL activities occurring in— – – – – – – – – – – – – – – – – – – United States Canada Australia China & Hong Kong Japan Malaysia New Zealand Singapore Taiwan Germultifarious India Ireland Netherlands Nordic Federation (Denmark, Norway, Sweden) South Africa Spain Switzerland United Kingdom • And on a global raze through the— – International Accounting Standards Council – International Press Telecommunications Council – International Standards Organization 21 XBRL International is gaining power • On a Global raze through the— – – International Accounting Standards Council International Press Telecommunications Council International Standards Organization • On a Country Level: – – – – – – – – – – – – – – – – – – United States Canada Australia China & Hong Kong Japan Malaysia New Zealand Singapore Taiwan Germultifarious India Ireland Netherlands Nordic Federation (Denmark, Norway, Sweden) South Africa Spain Switzerland United Kingdom 22 XBRL Contact "The explosive enlargement of the Internet is not barely changing the way companies pass their calling, it besides promises to incessantly modify the way they adjoin calling execution. - CFO Magazine, February 2000 23 XBRL Documents • • • • • • • • • • • XBRL for Financial Statements XBRL for Public Ledger XBRL for Journal Entry Reporting XBRL for Security Reporting XBRL for Execution Press Releases XBRL for Risk Reporting XBRL for Regulatory Filings XBRL for Tax Filings XBRL for Assurance Schedules XBRL for Authoritative Literature XBRL for “Business” Reporting 24 Who’s Embracing XML now? • Software developers Using XML as the centre technology for new products • Database developers Building XML buttress into their products. • Toil groups Deciding how notification should be distributed. Organizations Investigating how to tie their entomb and intra assemblage orderes unitedly. 25 • XML for Financial Reporting • Enables a pompous increase in the ordering of financial reports • XBRL documents can be— – – – – – Prepared efficiently Exchanged reliably Published over abundantly Analyzed instantly Retrieved by investors barely to strengthen smarter investments 26 Benefits • XBRL is: – NOT a new accounting tests but improves the dispensation and uspower of corporeal financial declaration notification – Enabler and an extension for subjective axiomsbase functionality for all financial declaration notification 7 Problems XBRL Addresses • Ineffective despatch to investors • Inefficient instrengthening and anatomy • Inefficient romance of financial declarations 28 Why XBRL ? Strengthen calling reporting that leverages the Internet & XML Effective appropinquation and anatomy of calling reports Improve urbane despatchs after a dateliness stakeholders 29 Who benefits Order Benefits: Lowering Financial Reporting Consume • Today’s superficial reporting orderes – Reexecution and retrogression – Ad hoc and non repeatable – No track ready Accounting System Explanatory Text Third Party Notification Printed Financials Regulatory Filings Web Site Tax Return Trade Filings 30 Who benefits Order Benefits: Lowering Financial Reporting Consume • Common entombchange format and storage is cheerful notification skill performance – Reduces redundancies & discrepancies – Repeatable orderes using tools – A platform for faithful reporting Accounting System Explanatory Text Third Party Notification XBRL Documents Printed Financials Regulatory Filings Web Site Tax Return Trade Filings 31 XBRL: Interoperpower & Multiple Uses G/L Package ERP XBRL Custom Developed Systems US GAAP Financial Declaration In English US GAAP Financial Declaration In Dutch US GAAP Financial Declaration to the Web US GAAP Financial Declaration to Print XBRL Other Sources of Notification XBRL Other Sources of Notification Other Sources of Notification US GAAP Financial Declaration to Cell Phone XBRL: Interoperpower & Multiple Uses G/L Package ERP US GAAP Financial Declaration Investors & Creditors XBRL Custom Developed Systems EDGAR Filing XBRL Tax Filing XBRL Government Other Sources of Notification Bank Filing XBRL News Agencies And Others Other Sources of Notification Other Sources of Notification Press Release Once Every Event is tagged in XBRL… G/L Package ERP IAS Financial Declaration in German US GAAP Financial Declaration In English French Tax Filing Investors & Creditors XBRL Custom Developed Systems XBRL XBRL Government Other Sources of Notification Canadian Banking Filing XBRL News Agencies And Others Other Sources of Notification Other Sources of Notification EDGAR 10k row ace via Cell Phone XBRL Working Model: Planned Specifications XBRL for G/L Journal Entry Reporting XBRL for Financial Statements XBRL for EDGAR Filings Processes Calling Operations Internal Financial Reporting Superficial Financial Reporting Investment and Lending Analysis XBRL for Calling Event Reporting XBRL for Tax Filings Financial Publishers and Axioms Aggregators Participants Companies Investors Trading Partners Skill Accountants Auditors Regulators Software Vendors XBRL: not a Transaction Protocol What it is • XBRL is barely a format to serialize involved, buildingd financial axioms: e. g. , declarations, G/Ls. • Therefore, it cannot re-establish OFX, ebXML, ANSI X. 12 Trans Set 821, OMG G/L Spec, ... • Forthcoming intimation sets in those protocols could include XBRL tagged axioms if they insufficiency to grant financial declarations in the intimation whole. XBRL provides a frameexecution and an AICPA liked wordbook that can be plentiful to multifarious other reporting frameworks. 36 XBRL: not an accounting test • Means of communicating – Current GAAP – Current performance • Elastic test – Forthcoming tests – Forthcoming public performance 37 XBRL: A Fragment of a Raw Axioms Raw Axioms in Spreadsheet Assemblage Coca Cola Co. Coca Cola Co. Financial Declaration Balance Sheet Row Ace CurrentAssets. Cashand CashEquivalents CurrentAssets. Cashand CashEquivalents Label CurrentAssets. Cashand CashEquivalents CurrentAssets. Cashand CashEquivalents Year 1999 Value 1611 Balance Sheet 1998 1648 Similar Raw Axioms in XML (XBRL) Format $1,611 $1,648 38 39 What software ‘sees’ is the opposediator and drives benefits (hither is an harvest) 40 Importance of Reporting “ [W]hat excites the CEO is the power to recognize what the calling is doing at any absorbed sharp-end in season, rebound instantly to traffic shifts and competitive threats and halt in neat manage dateliness empowering employees to perform cognizant decisions over instantly. Year End Earnings Release Call August 10, 1999 John Chambers Cisco CEO ” 41 “ Virtual Close The Best Performance has, in my conviction, harmonious as abundantly contact on a assemblage’s forthcoming achievement or stagnation thereof as the wellpublished e-traffic area. Year End Earnings Release Call August 10, 1999 John Chambers Cisco CEO ” 42 XBRL Contact • “ … If Europe stirs instantly to catch up these tests, it could present them an captivating manage in the family to appropinquationible and proportionately key axioms that would exasperate investor entombest. It would undoubtedly spawn a plethora of exploration tools that would be adapted to twain retired and tradeal investors. ” • • - Investors Chronicle, August 9, 2000 43 XBRL and the Emergence of ‘e‘eStandards’ • E-Standards are essential • HTML is the test that strengthend the web’s highest ‘Big Step’ • XML is the web’s contiguous ‘Big Step’ – Over 200 XML-Based Specifications and Protocols stop, including— • • • • RosettaNet – computer assemblage give manacle and trading webs OBI - Notorious Buying on the Internet - vend e-traffic FpML - Financial Products (Derivatives, Swaps, FX) ACORD XML - Insurance toil notification modify tests superficial from EDI. – UN/CEFAC = EBXML • XBRL is uniquely focused on financial reporting 44 Test . orgs (reporting vs ‘e’) Accounting / Auditing Reporting ASB IASC FASB IFAC SEC Territory Institutes ‘e-Business’ W3C OASIS;UN/CEFAC T (ebxml) xml. org RosettaNet ACORD What about these? CPAs join-in / manage in these The class of what is inferior harvest today ... HR CRM “Horizontals” (Infrastructure) thither are others….. XBRL is uniquely focused on Etc. calling reporting CHEMX RosettaNet ACORD FpML ANX “Verticals” (Industry Give Chains) thither are others……. XBRL Adds Reporting to E-Commerce ETax One way Regulators Investors Creditors Lenders Website One way Aggregators BUSINESS ERP G/L Packages CRM 2-way Suppliers Transaction Romance 2-way •Orders •A/P •Delivery •Orders •A/R •Delivery Customers 47 XBRL Adds Reporting to E-Commerce ETax One way Regulators Investors Creditors Lenders Website One way Aggregators BUSINESS G/L Packages ERP CRM BUSINESS REPORTING XBRL 2-way Suppliers Transaction Romance 2-way (e-)Commerce OTHER XML INITIATIVES •Orders •A/P •Delivery •Orders •A/R •Delivery Customers 48 XBRL - What Key XBRL Components • XBRL / XML Specification (XBRL. org) – Global architecture/technology • XBRL hierarchical wordbook (jurisdiction/industry) – Dictionary of stipulations by jurisdiction/toil sector Style Sheets • XBRL strengthend tools (preparer) (market) 49 Key to our Achievement Traffic driven pattern – Start ultimate, be implied Broad give manacle homogeneity Members buttress XBRL Members do not rival on the “framework” Build building & systems to buttress notorious homogeneity & traffic harvest 50 Steps in Technology Acceptance Acceptance Simplification/Tools Taxonomy Visionaries 51 Financial Institutions—and their Users Institutions— • SMALL BUSINESS provides FINANCIAL INSTITUTION after a dateliness their notification in XBRL and receives hypothecation laudation in hither than a day instead of two days—or two weeks. Average Season for Hypothecation Processing—1. 75 days Value-added Anatomy and Decision-making? 90% + season gone-by on Mechanics Hither Risk After a dateliness => Better Or Mechanics Anatomy Mechanics Anatomy Mechanics Anatomy Mechanics Anatomy Order over hypothecations in the similar totality of season 52 Benefits to Today's Users • 1. Lessen consume of analyzing and reporting financial notification • 2. Increase accelerate and power of calling decisions 3. Improve the dispensation and appropinquation of corporeal financial declaration notification 4. Over early modifyd 5. Increase and improve anatomy 53 Benefits • 1. Reduce consume of analyzing and reporting financial notification • 2. Increase the accelerate and power of calling decisions • 3. Improve the dispensation and uspower of corporeal financial declaration notification 54 Example: Consume Reduction • International Subsidiaries: • Large multi-national strengthening uses XBRL to instantly roll–up, excite and notify the financial declarations of condensed subsidiaries— • • • • in opposed countries after a dateliness opposed expressions using opposed GAAP on opposed computer systems 55 Benefits • 1. Lessen consume of analyzing and reporting financial notification • 2. Increase the accelerate and power of calling decisions • 3. Improve the dispensation and uspower of corporeal financial declaration notification 56 Example: Efficient Decisions • Superior common stock assemblage feeds XBRL-ized notification to customers to opposediate their stocks as over concrete and current investments • An investor uses XBRL to assimilate the financials for a class of companies— – Belonging to opposed enrichment razes – Located after a datelinessin an toil sector – Along multiple analytical criteria 57 Benefits • 1. Lessen consume of analyzing and reporting financial notification • 2. Increase the accelerate and power of calling decisions • 3. Improve the dispensation and uspower of corporeal financial declaration notification 58 • Hypothecation Approval: Example: Security – Small Calling provides Bank after a dateliness their financial notification in XBRL and receives hypothecation laudation in 1 searching instead of 2 days • Security Approval: – Assemblage approves customer security petition after a dateliness automated duty orderes facilitated by XBRL • Row of Credit: – Assemblage provides consummate traffics after a dateliness financial notification in XBRL and receives expedited row of security 59 XML Shortcomings? Not a re-establishment for integration and middleware tools Lots of Hype, not a discontinuance for anything Thither are multifarious opposed tests discurrent industries Standards quiescent evolving But, you can’t halt dateliness the tests evolve…. 60 XBRL Harvest & Adoption Final Thought…….. Change is not what it used to be….. Change has grace a order; it’s grace a beaming deal-out of the superficial environment 62 Summary • FASTER – BETTER • CHEAPER • Our trade allure bear to supervene technology and chronicles calling earnestness in an real-season legislation. 63 Concluding Remarks .. 64