1IMA’s 94th Annual Conference © 2013 Institute of Management Accountants. All rights reserved.

Find the Accounting in XBRLAccounting Discovery Available for

FreePresenter: Neal J. Hannon, CMA Executive Director, WebPro Missouri Consulting

Three Learning Objectives

• Identify the Accounting Underlying XBRL

• Expand the Digital Perspective of Accountants

• Demonstrate Free Online Tools for Accountants

2IMA’s 94th Annual Conference © 2013 Institute of Management Accountants. All rights reserved.

XBRL Committee Encouraged by SEC Chairman Arthur Levitt's RecommendationThat It be Expanded and Used by Investors and CompaniesBusiness Wire,  Oct 30, 2000  Business EditorsNEW YORK--(BUSINESS WIRE)--Oct. 30, 2000In remarks last week, Arthur Levitt, Chairman of the Securities Exchange Commission (SEC), acknowledged XBRL and recommended its further development to turn financial statements into meaningful information for investors using this new revolutionary technology. Chairman Levitt's remarks were made at the American Institute of Certified Public Accountants' (AICPA) Fall Council Meeting in Las Vegas, Nevada on October 24, 2000.

First SEC Mention of XBRL

Fr. SEC Chief Accountant Lynn Turner

“I support XBRL. In fact, I wrote the comment for Chairman Levitt’s speech. But please tell

everyone you talk to about XBRL that you must

Get the Accounting Right!”

AccountingGoes Digital

Do You Remember Vinyl Records?

Had to Play from start to finish

Record could be damaged if you attemptedto play a specific track.

Likewise , Financial statements, notes and disclosures..

Vinyl Records And Disclosures

The technology dramatically changed how we relate to musicand gave us the power to select individual cuts suited tomusical tastes and preferences

Then Came Digital Music

• Individual Tracks Separated• Choose Your Own Order for Play• Start and Stop

What can digital data do?

http://www.youtube.com/watch?v=T0YifXhm-Zc

George Martin and the Beatles

The task Collect, identify, classify the entire set of music created

by the Beatles Using master tapes, break out the riffs Re-configure music into digital sound bytes

The results New Music.. The Beatles Love Album

http://www.youtube.com/watch?v=tzG5O6EUSgw

The SEC and Interactive Data

The task Collect, identify, classify the entire set of GAAP created

by US Authoritative Sources of GAAP Using financial statement hierarchy, break out the

elements into an XBRL taxonomy Re-configure accounting into digital bytes

The results New Filings.. The SEC Interactive Data initiative in

XBRL

Digital Data Fundamentally Changes

the paper-based

reporting paradigm

CAN YOU SPELL…..

XBRL

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ExternalFinancialReporting

BusinessOperations

InternalFinancialReporting

Investment,Lending,

Regulation

Processes Economic Policymaking

Participants

AuditorsTradingPartners

Investors

FinancialPublishersand Data

Aggregators

Regulators

Software Vendors

ManagementAccountants

Companies CentralBanks

XBRLXBRLXBRLXBRL XBRLXBRLXBRLXBRL

XBRL for G/LJournal Entry

Reporting

XBRL for Financial Statements

Scope and Role of XBRL

Who is using XBRL ?

Kim Wallin, Controller, State of Nevada and Former Chair, IMA

In 2007, Wallin begin considering XBRL as a solution to grant reporting, and when the Department of Agriculture asked for help with their reporting, Deloitte was brought in and two of Agriculture's grants were selected for the XBRL pilot.

"The goals were timely and accurate data,“ said Wallin, "stronger internal controls, reduced costs, a standardized system of seamless data exchange, business processes

and data elements. XBRL met all of those goals."

US GAAP TaxonomyDevelopment Effort

FAF, XBRL US

GAAP,SEC Regulations

Codification projectAudit check lists

Internal and publictesting

XBRLprotocols

TaxonomyRelease

CFOInvestor Relations

CurrentReporting Practice

Key concept:Create a Data model

AnalystsInvestors

Accounting.. Hidden for Decades

EXPOSED!

Let’s Find Out Where the Accounting is Hiding

The Touchstone SEC Verification Suite provides independent assurance for your XBRL filings

XBRL CLOUD’s EDGAR DASHBOARD

Paper Based US GAAP

Digitizing Accounting

1. US GAAP2. Examples of Financial Reporting3. External Auditor check lists4. Expert Financial Preparers

Then chop into consumable pieces

Gather

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Standard Label

Standard label in English:Net Revenue

Standard label in XBRL:us-gaap:SalesRevenueServicesNet

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Definition

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Authoritative Reference

The Meta Data Counts

So.. If a filing contains a label that is further described by a definition and a reference, the computer referencing the item will have all three pieces of information as discoverable meta data

Label Definition Reference

Principles

GAAP accommodates variation in applied accounting methods as long as the methods generally conform to GAAP’s set of principles…..

This drives computers crazy!

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Let’s Look at Accounting!

Accounting can be found in the taxonomy

• Accounting structure is in the linkbases• Definitions are explicit, not implied• Authoritative literature is linked • Taxonomy elements are highly vetted by

FASB, SEC, Public reviews

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• XBRL Cloud’s EDGAR Dashboard: Features a quick guide to recent SEC filings including and in-depth look at the accounting definitions and authoritative literature backing each element chosen. Use the interactive viewer to see the accounting. All company filings are visible which allows you to see how companies are mapping actual reporting to the official US GAAP taxonomy.

• WebFiling’s Taxonomy Analyzer: Type in an accounting concept and you will see all the XBRL elements associated with the concept, a view of where it appears in financial statements and a method for seeing what other elements in the taxonomy are closely related. In the comparative mode, the taxonomy analyzer allows you to view the accounting treatments of up to five companies side by side.

Free Accounting Tools!

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• The BRIX Project app for the IPhone. This tool can be used to do some very cool things. First, you can look up accounting concepts, and then you can ask the app to find companies that are using the concept in actual filings. Pull out your smart phone and dial up the accounting treatment of your choice.

• ASKaRef is an online tool for accountants to discover the link between an accounting concept and the XBRL definition and the ASC. This very easy to use tool has the US GAAP 2012 taxonomy as the base for finding the accounting linkage. The beauty of the tool is how quickly you can find the ASC that backs up the taxonomy. Straight forward link from accounting concept to taxonomy element to ASC. No actual financial reporting can be seen with this tool.

More Accounting tools!

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• XBRL.US’s taxonomy viewer was developed by CoreFilings and features a pre-load of the world’s most popular taxonomies. Curious about IFRS reporting? The Yeti tool will allow you to load the IFRS taxonomy and explore concepts. A preview of the new XBRL US GAAP taxonomy (SEC pending) is now available.

• FASB’s Implementation guides and reference guide: From the FASB.org website, “The objective of the U.S. GAAP Financial Reporting Taxonomy (UGT) Implementation and Reference Guides is to provide preparers with additional insight and supplemental guidance for utilizing the UGT as they create their XBRL documents.” The guide can also be used by non-taxonomy accountants to discover how to implement new ASC pronouncements.

• XBRL.US XBRL Challenge entries. For the past three years, XBRL US and sponsors have offered a challenge to the financial community to create innovative tools using XBRL. The results can be found on the link above. An example of a winning entry is the 2012 winner CalcBench, a free online benchmarking and industry analysis tool.

Even More Tools!

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US GAAP Taxonomy 2013

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FASB’s XBRL

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Path to the Taxonomy's Accounting

• FASB.org; click on FASB XBRL• Click on “taxonomy view”, then

‘Entire 2013 US GAAP Financial Reporting Taxonomy’

Once there, type “cash” into search box

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Yeti – A Taxonomy Reader

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SEC’s Interactive Data Site

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XBRL US Site

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XBRL Cloud’s ClearScore Verification

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WebFilings Taxonomy Analyzer

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The Codification of US GAAP

US GAAP was contained in over 12 publications of official and semi-official GAAP prior to the 2005-7 effort to place all US GAAP into an electronic index called ACS.

Access to the ACS is either public or professional. Professional access is a paid service.

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Accounting Standards Codification

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FASB Implementation Guides

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OCI Guide – Taxonomy Elements

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Ask A Ref.com

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XBRL US Smart Phone App

I Would like to thank…

Mike Willis, Eric Cohen PWC

Glen Gray Cal State Northridge

Liv Watson WebFilings, XBRL.org

Roger Debreceny U of Hawaii

Charlie Hoffman Consultant

Paul Penler E&Y

Zane Swanson University of Central Oklahoma 

Walter Hamscher S.E.C.

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Three Key Takeaways

• Accounting is the Foundation for Digital Business Reporting

• Every Accountant Can Take Advantage of the Accounting in XBRL

• Free Tools are Available, Use Them!

57IMA’s 94th Annual Conference © 2013 Institute of Management Accountants. All rights reserved.

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Questions?

Thank You

nhannon@gmail.com