Frequently Asked Questions
1. Who is using XBRL for what?
2. What is most urgent for XBRL International?
3. How will XBRL impact content based businesses?
4. Why XBRL instead of our own XML Schemas?
5. What XBRL tools and products are available?
6. What is XLink and why is XBRL based on it?
7. When will XBRL become widely used?
8. Who is behind XBRL… and why?
9. Is XBRL like FpML (RIXML, MDDL, SomeotherML)
10. Where can I get a copy of these slides?
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Frequently Asked Question:
Who is using XBRL for what?
 B2G - Regulatory Applications
 Australian Prudential Regulatory Authority (2001)
 US Federal Depository Institution Corp. (2002)
 UK Inland Revenue (2003)
 B2L – Business to Lenders
 Bank of America / Moody’s – Credit Analysis (2003)
 Deutsche Bank – same
 B2M – Business to Markets
 Traditional financial reporting (2002)
 Business performance reporting (2003)
 Internal applications
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Frequently Asked Question:
What is most urgent for XBRL International?
 Taxonomies
 Wide coverage
 Consistent practices
 Reusability
 Specifications
 Enhanced validation
 Richer representations
 Move to interoperability
 Implementations
 Profiles
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Internet
Producers
Application
Layer
(Validation
Rules)
Consumers
Producers
Business Rule Documents
Software
developers
Content Layer
(Payload
Language)
Meta Data
Repository
XBRL Taxonomy Documents
XBRL Instance Document
Data
Repository
Transport envelope
Transport
Layer
(Secure
Protocols)
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Alternative
protocols
OFX2
ebXML
SOAP
S/MIME
HTTPS
FTP
Taxonomy as Dictionary
Disclosure
Income
inc
Advertising
exp.adv
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Expense
Result
exp
inx
Marketing
Profit
Net Interest
exp.mkt
inx.prf
inx.int
Taxonomy as Classification
Disclosure
Defined as
Income
Expense
Result
Defined as
Defined as
Advertising
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Marketing
Profit
Net Interest
Taxonomy as Calculation
Disclosure
Added into
Income
Expense
Result
Subtracted from
Added into
Added into
Advertising
Marketing
Profit
Net Interest
Added into
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Taxonomy as
Reusable Building Block
Disclosure
Added into
Income
Result
Expense
Subtracted from
Added into
Added into
Rebates
Advertising
Marketing
Website Expenses
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Profit
Net Interest
Added into
Example:
XBRL for Web Site Reporting
Insider trades
US Site Taxonomy
Significant events
Element Schema and
Definition Linkbase
Calculation and
Other Linkbases
Restrictions on
redefining links
GAAP C&I v2 Taxonomy
Element Schema and
Definition Linkbase
Calculation and
Other Linkbases
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imports
Company Site Custom
Taxonomy
imports
Element Schema and
Definition Linkbase
Calculation and
Other Linkbases
Taxonomy as Collaborative Effort
 Agree naming
 Agree structure
 Agree schedule
Income
Advertising
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Disclosure
Expense
Marketing
Result
Profit
Net Interest
XBRL Taxonomies in 2002
 Best practices
 e.g. ast.amz.goodwill = Amortization of Goodwill
 e.g. Assets have “current” & “non current” children
 e.g. Reusable common components taxonomy
 Focused development efforts
IAS Taxonomy: Core financials, Core + Notes
US GAAP C&I Taxonomy
UK GAAP C&I Taxonomy
Inland Revenue “Computation” Taxonomy
FDIC Taxonomy (US)
Canadian GAAP, others.
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Internet
Producers
Application
Layer
(Validation
Rules)
Consumers
Producers
Business Rule Documents
Software
developers
Content Layer
(Payload
Language)
Meta Data
Repository
XBRL Taxonomy Documents
XBRL Instance Document
Data
Repository
Transport envelope
Transport
Layer
(Secure
Protocols)
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Alternative
protocols
OFX2
ebXML
SOAP
S/MIME
HTTPS
FTP
Validation
 The financial information integration problem
 Any (XBRL) application involving data transfer across enterprises
must validate incoming data one way or another.
 Consumer can validate after the fact, return errors (bad)
 Producer can validate before submitting (good)
 Common solutions and their consequences
 Custom code, database constraints
 XML Schema validation
 Computation linkbases
 Like XML Schema – used in many programming environments
 Native to XBRL and works well for financial computations
 Do this the way other standards bodies would
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Validating XBRL today
Current assets, liabilities,
Pretax profit, expenses,
Directors compensation…
XBRL Taxonomy
Calculation and
Other Linkbases
“Include only profit and
expenses which must
be whole numbers”
Element Schema
Imports
Imports
Schema
Validation
CalculationArc
cwa Validation
Form AA Filing
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Form AA Schema
Schema
Validation
Schedule BB Schema
Schema
Validation
Form BB Filing
“Include only
directors’ comp”
Validation Levels
 Data elements
 “Current assets” is represented by uk:ast.cur
 Primitive data types
Benefit of Upstream
Validation: Low
 The value of uk:ast.cur must be nine digits and not negative
 Compound data structures
 A Maturity Breakdown must contain Loans, Securities and Derivatives
 Calculated data values
 RIAC4410 = RIAC4411 + RIAC4412, plus or minus 1
 Co-Constraints among data values – “Business Rules”
 Box27 is True if and only if Box28 is the same as Box29
 Cross-document constraints
 If Box28 is larger than any other value ever reported, Var50 is True
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Benefit of Upstream
Validation: High
Computation Linkbases
Sample “business rule”
FRB Edit Check 0125
True/false
Upper tolerance
Result
Constant
Lower tolerance
Riad4011-Q1 >= Riad4022-Q2
Formula
Outstanding Loans in Q1
Monetary
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Variable
Variable
Constant
Outstanding Loans in Q2
Monetary
Computation Linkbases
(Vun Kannon)
<element name="FRB-EDCK-0125" type="xbrl:booleanItemType">
<annotation>
<documentation>
Current quarter value should be greater than or equal to previous quarter's value.
</documentation>
<appinfo>
<xbrl:formula select="(number($riad4011-q1) - $lower_tolerance)
>= (number($riad4011-q2) + $upper_tolerance)"
xlink:type="resource" xlink:label="RI_FRB-EDCK-0125_fm" xlink:title="RI_FRB-EDCK-0125_fm">
<xbrl:variable name="riad4011-q1" xlink:type="simple" xlink:href="ffiec-031.xsd#riad4011">
<xbrl:precondition name="period" interval="m" value="6 9 12"/>
<xbrl:precondition name="period" minimum_value="20010101"/>
</xbrl:variable>
<xbrl:variable name="riad4011-q2" xlink:type="simple" xlink:href="ffiec-031.xsd#riad4011">
<xbrl:restriction name="period" interval="m" offset="-3"/>
</xbrl:variable>
<xbrl:constant name="upper_tolerance" value="0"/>
<xbrl:constant name="lower_tolerance" value="0"/>
<ffiec:edit type="i"/>
</xbrl:formula>
</appinfo>
</annotation>
</element>
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Entity Linkbase proposal
 Proposed additional computation / validation
requirements:
 Ability to define, publish and re-use general financial
formulas
 Ability to express computational relationships across
entities
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Entity Linkbase proposal
 Common need to represent financial
relationships among subsidiaries, owned assets,
etc.
TLA
owns
100%
Enron
Enron Group
(Virtual)
owns
100%
Enron JV’s
(Virtual)
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St. Advil’s
Hospital
owns
100%
MA_571XVH
(Asset)
owns
100%
TBD
owns
50%
BFD
Entity Linkbase proposal
Sample fragment
<ownershipLink>
<!-- TLA has two fully owned subsidiaries, TBD and BFD. -->
<entity xlink:label="tla" xlink:type="resource" xlink:title="tla“ />
<entity xlink:label="tbd" xlink:type="resource" xlink:title="tbd" />
<entity xlink:label="bfd" xlink:type="resource" xlink:title="bfd" />
<ownershipArc weight="1" from="tla" to="tbd" xlink:type="arc" />
<ownershipArc weight="1" from="tbd" to="tla" xlink:type="arc" />
<ownershipArc weight="1" from="tla" to="bfd" xlink:type="arc" />
<ownershipArc weight="1" from="bfd" to="tla" xlink:type="arc" />
</ownershipLink>
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TLA
owns
100%
TBD
owns
100%
BFD
Augmented Computation Linkbase:
Compact, reusable business rules
 TLA Q1 Revenue = TBD Q1 Revenue + BFD Q1 Revenue
 HPCQ Q2 Interest = HP Q2 Interest + Compaq Q2 Interest
 etc…
Upper tolerance
Check
True/false
Result
Owner/Owned Flow Items
Formula
Owning Entity
All “Flow” type Items
In All Periods
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Variable
Variable
Constant
Lower tolerance
All Owned
Entities
For
Forall
allOwned
OwnedEntities
Entities
Corresponding
“Flow”
type items
Corresponding
Corresponding“Flow”type
“Flow”typeitems
items
inincorresponding
Periods
incorresponding
correspondingPeriods
Periods
Augmented Computation Linkbase
Sample “business rule”
<xbrl:formulaType select="(number($R1)) - $lower_tolerance) >= (number($R2) + $upper_tolerance)"
xlink:type="resource" xlink:label="GTPP" xlink:title="GTPP">
<xbrl:variable name="P" type="period"/>
<xbrl:variable name="E" type="entity"/>
<xbrl:variable name="I" type="item"/>
<xbrl:variable name="R1">
<xbrl:precondition name="entity" bind="$E"/>
<xbtl:precondition name="item" bind="$I"/>
<xbrl:precondition name="period" bind="$P"/>
<xbrl:precondition name="period" interval="m" value="6 9 12"/>
<xbrl:precondition name="period" minimum_value="20010101"/>
</xbrl:variable>
<!-- ... -->
</xbrl:formulaType>
<xbrl:formulaInstance xlink:label="GTPP">
<xbrl:bind name="P" value="20010101P3M"/>
<xbrl:bind name="E" xlink:href="entity.xml#bailey_bank"/>
<xbrl:bind name="I" xlink:href="ffiec-031.xsd#riad4011"/>
</xbrl:formulaInstance>
…but my point is…
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Creating a Specification in a
“capital-S” Standards Body
 Requirements document
 Market requirements – define needs, assess current solutions
 Technical requirements – compatibility with other open specs
 Use cases – specific cases to be covered
 Specification document
 Technical documents including design rationale
 Reference implementation
 Sample instances, documentation of instances
 Sample application that illustrates correct semantics
 QA and Review process
 Define criteria, set deadlines, have 2nd editor, vote.
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Internet
Producers
Application
Layer
(Validation
Rules)
Consumers
Producers
Business Rule Documents
Software
developers
Content Layer
(Payload
Language)
Meta Data
Repository
XBRL Taxonomy Documents
XBRL Instance Document
Data
Repository
Transport envelope
Transport
Layer
(Secure
Protocols)
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Alternative
protocols
OFX2
ebXML
SOAP
S/MIME
HTTPS
FTP
Implementation Profiles
 Excited advocates of XBRL face cost uncertainties
 Process analysis of exporting, transmitting, revising, importing
 Authenticating sender and receiver, privacy, version control
 Schema and linkbase version management, repositories
 Current solutions require reinvention of wheels
 Plug XBRL payloads into an existing communication path
 Develop dedicated login, signature, transport
 Publish suggested bindings to other specifications
 OFX2 – not typically used for reporting, but it would work
 SOAP / WSDL / UDDI / XLANG – Web Services
 ebXML – business transaction protocol, process definitions
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Producer-Consumer interactions
appearing in all e-reporting
 Register, retrieve, update
producer and producer standing
data;
 Register, revoke, update
authorized persons at the
producer;
 Register, revoke, update
authorized intermediaries
reporting on behalf of the
producer;
 Obtain new versions of the
reporting form; communicate
other change notices;
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 Submit a test report, submit an
actual report;
 Obtain an error check or
analysis on a report;
 Recall a previously submitted
report; submit an updated
report; modify individual data
items within a report;
 Confirm acceptance or rejection
of a report;
 Obtain a transaction history,
version history; access log, and
detailed audit trail of reports, by
institution and/or report.
Frequently Asked Question:
How will XBRL impact content based businesses?
 Intermediaries’ value added does not change
Completeness – History and breadth
Consistency – Data linkage via unique identifiers
Availability, Anonymity of access
Customization, Convenience
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 Intensifies competition over unique content
 Producer & consumer behaviors change slowly
Intermediary
Producer
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Consumer
Intermediary
Frequently Asked Question:
Source:
Liv Watson, Edgar Online
How will XBRL impact content based businesses?
Less data preparation
Less data re-keying
More direct communication among processes
More emphasis on analytics
Dashboards
Expansion of non-financial information content
Rapid transformation of products
Semantic analysis
Information agents
Reduced data tailoring costs and revenues
Reduced application tailoring costs and revenues
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ICC Information
Source:
Terry Dawson, ICC
 Part of the Bonnier Group, BBI
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61 companies covering 19 European countries
local information specialists
core competence based around content
XML adopted throughout BBI
 ICC Information - UK & Irish company info.
 Private Companies, Directors & Shareholders
 Capture
 Analysis
 Direct & Indirect distribution
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Why XBRL is important to ICC
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Source:
Terry Dawson, ICC
Standardisation of content is always important!
Isolates content value in purchasing decisions
Provides greater distribution opportunities
Standardises delivery platforms beyond XML
Supports analysis methods and data structure
Potential to significantly reduce costs
Leverages existing technology and skills
Positive revenue impact
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Mid and Long-term impacts
Source:
Terry Dawson, ICC
 For the Industry
 reduced switching costs / development expense
 increasing emphasis on content and end-user
integration
 reduced publishing costs
 intermediaries must seek new ways of adding value
 For ICC Information
 greater ability for content to be integrated in a wide
variety of applications
 cost of capture reduces (subject to UK Companies
House & other Company Registries adopting)
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Frequently Asked Question:
Why XBRL instead of our own Schemas?
 Don’t reinvent the features of XBRL
Item types – financial parameters
Predefined concepts (labels, references)
Entities, periods, segments, scenarios
Extensibility using XLink
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Information
Producer
Information
Producer
Information
Producer
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€ 2.5m
9,000
EPS
57%
Business Information
that is
• Financial in nature
• Enhances standard definitions
• Refers to multiple entities
• Refers to multiple periods
Information
Consumer
Information
Consumer
Information
Consumer
Frequently Asked Question:
Why XBRL instead of our own Schemas?
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ICAEW
IASB
AICPA
IDW
JICPA
CICA
CPAA
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Frequently Asked Question:
What is XLink and why is XBRL based on it?
 XLink is a W3C standard way to use XML to
represent all kinds of relationships between XML
elements no matter where they are.
XML Document 1
<P id=“a”>
<P id=“b”>
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Linkbase
b
explain
sa
XML Document 2
<P id=“c”>
b is the
same
as c
XBRL uses XLink to represent all
relationships between data elements
<element id=“ast.cur”>
Definition:
more
general
<Label>Current Assets</Label>
label
label
<element id=“ast.inv”>
<Label>Inventory</Label>
Presentation:
before
<element id=“ast.fixed”>
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reference
<P>A formal
explanation of
Inventory in the
Accounting
Literature</P>
XLink allows customization and explicit,
modular changes to reusable material
<element id=“ast.cur”>
Definition:
more
general
<Label>
</Label>
label
label
<element id=“ast.inv”>
<Label>
Presentation:
before
<element id=“ast.fixed”>
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reference
</Label>
<P>A formal
explanation of
Inventory in the
Accounting
Literature</P>
Frequently Asked Question: What about
other financial markup languages?
MDDL – Market Data
RIXML – Research Reports
FpML – Financial Instruments
SMDX – Statistical Metadata
ISO 15022 – UML repository of financial data
fields and business processes (SWIFT, FIX, etc.)
 NewsML – News Packaging and Distribution
 PRML – Press Releases
 IFX and OFX – Financial transactions
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Source:
Tony Coates, Reuters
What is the Role of XBRL in Finance?
 Beyond company reports, XBRL is a good format
to choose wherever a numerical breakdown/rollup needs to be expressed.
 If there are no such breakdowns, then the main
XML file risks being just another XML file
 Little to be gained from using XBRL, unless a
significant proportion of items have accepted
XBRL definitions
 So it is a matter of horses for courses
 XBRL’s forte is numerical breakdown/roll-ups
 Supports drill-down into numbers of interest.
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XBRl - Frequently Asked Questions