Regis Rivet IMA Presentation
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This document discusses XBRL, a standardized way to communicate business reports using XML tags. It covers the SEC mandate requiring public companies to report financials in XBRL, and explores uses of XBRL for internal reporting such as planning, control, and preparation for external reporting. Benefits of XBRL for internal reporting include shared meanings, standards, and two-way data flows between systems.
Regis Rivet IMA Presentation
- 1. XBRL a technology and a revolution SEC mandate for data standardization Information supply chain and internal reporting A use case for XBRL
- 2. Kristine Brands, CMA Assistant Professor, Regis University kbrands@regis.edu Charlie Hymer, CPA Regional Account Manager, Rivet Software charlie.hymer@rivetsoftware.com Jordan Woodard Sr. Compliance Manager, Rivet Software jordan.woodard@rivetsoftware.com 2
- 3. Agenda XBRL Explained SEC Mandate for XBRL Internal Reporting Mythbusters 2012 XBRL Business Cases Final Thoughts Questions RIVET SOFTWARE 3
- 4. What is XBRL? A standardized way to communicate business reports. Focus on providing a mechanism to define reporting terms. Individually identify bits of data within a large block of information Getting to the heart of information that traditionally has been paper-locked Bar coding for financial information RIVET SOFTWARE 3
- 5. Built on the shoulders of giants. XML (Extensible Mark-up Language) Data standard for the web Based on HTML (HyperText Mark-up Language) - the language that rules the web XLINK (XML Linking Language) A standard for linking pieces Of xml XHMTL (Extensible Hypertext Mark-up Language) A modern variant of HTML and many more RIVET SOFTWARE 4
- 6. RIVET SOFTWARE 5
- 7. What is XBRL? US GAAP ASC US GAAP TAXONOMY US GAAP REPORTING RIVET SOFTWARE 6
- 8. What is XBRL? RIVET SOFTWARE 7
- 9. XBRL in action! RIVET SOFTWARE 8
- 10. Epic use case: the SEC mandate. The initial event that popularized XBRL in the US was the SEC mandate for public companies to report their financials using the new data standard. RIVET SOFTWARE 9
- 11. Entities, filings and facts by phase. No. of Entities No. of Filings No. of Facts 507 5772 1381 6000567 Phase 1 5056 Phase 2 10928824 Phase 3 29069 3197389 6976 Note: Total entities of 8,864 Phase 1 - 5 Billion Market Cap * Dataasof 7-27-2012 @ 7:54 Total filings of 39,897 Phase 2 - Accelerate Filers Total fact 20,126,780* Phase 3 - Remaining Public Companies *includes duplicated facts RIVET SOFTWARE 10
- 12. Why it matters. I just sent over the 10-Q to my boss to review. I only started it No more weekends yesterday morning... I usually work over the weekend and spend a few late nights during the quarter, but I at the office. only had to put in one Sunday afternoon and one evening and here I am - done. I was able to go to New Orleans instead. Mitzie Pierce, Cardtronics RIVET SOFTWARE 11
- 13. Whats in it for you? No more keying in data. Work together w/ your Use one Word Instead, Link it. team in real-time. document to file everything. RIVET SOFTWARE 12
- 14. Why it matters. I just sent over the 10-Q to my boss to review. I only started it No more weekends yesterday morning... I usually work over the weekend and spend a few late nights during the quarter, but I at the office. only had to put in one Sunday afternoon and one evening and here I am - done. I was able to go to New Orleans instead. Mitzie Pierce, Cardtronics RIVET SOFTWARE 13
- 15. Keep it simple. HTML Data Excel Word XBRL RIVET SOFTWARE 14
- 16. The role of software. 12 11
- 17. XBRL in internal reporting. XBRL GL/XBRL FR conceptual overview. RIVET SOFTWARE 16
- 18. Internal Reporting: Three Tracks Edit reports Primarily for Ad hoc reports internal use Posting reports only Daily cash/AR/AP Performance Preparation for external use Financial Tax More detailed versions of Segment external reports PII* RIVET SOFTWARE * Personally identifiable information 17
- 19. In general internal reporting is: More detailed More frequent More varied (less standardized) Fewer EDI or Die vendor demands Change/up-front costs of standardization without pressure from third party But: more pressures now Internal controls SOx 404 PCAOB 3, Section 5.c RIVET SOFTWARE 18
- 20. Types of internal reporting: OPERATIONAL AND ADMINISTRATIVE PREPARATION FOR MANAGEMENT Financial Planning Statutory Control Legal Decision making Social Environmental reporting INTERNAL REPORTING DRIVES Procurement Staffing and scheduling Management and direction Cash management Preparation for external reporting RIVET SOFTWARE 19
- 21. Old World of Electronic Data Exchange NEW WORLD RIVET SOFTWARE 20
- 22. ASB BLT Old world AFT TGI FRY ECP HDL SWG DRW MFP WCP QYD DLY SKD DLY WIU XPS KYF XOI ZIS CUI WKD WHR ASB RMO JIA GEX HCO BST VUH KFC AJT FQA DKE RIVET SOFTWARE 21
- 23. XBRL in internal reporting. BENEFITS OF XBRL FOR EXTERNAL PURPOSES ARE OBVIOUS Shared meaning, different vocabulary Standards and definitions Global consumption Machine to machine consistency Public: From A to B to C IS INTERNAL DIFFERENT? RIVET SOFTWARE 22
- 24. Filling in the gaps between GAAPS. Tax Regulators Investors Creditors Lenders Website One Aggregators One way way XBRL BUSINESS BUSINESS REPORTING Intra system Detail to summary ERP G/L Packages CRM XBRL GL Detail Journal Taxonomy Transaction Creation Accounting 2-way recognition/2-way Orders Orders Suppliers (e-)Business A/P A/R classification Customers Delivery Delivery RIVET SOFTWARE X12, UBL, CEFACT FORUM, Other XML INITIATIVES 23
- 25. Data in internal reporting. CONSOLIDATIONS DATA MIGRATION ARCHIVAL DATA TRANSFER AUDIT TRAIL RIVET SOFTWARE 24
- 26. Basic challenge: similar data, but... XBRL GL provides platform for agreed-upon and Similar Data well defined list of concepts make sure my Account and your Account means the same Account, Amount, Date thing (not bank account or customer account but GL account.) Different Data Dictionaries: Field names, field order Based on XML, XBRL GL is order independent; sharing element names for import/export means System 1: AccountNo, Amount, Date that AccountNo, AccountNumberm Account# and Account will all be express as one common name; System 2: MonetaryAmount, PostDate, AccountNumber applications will know what to expect inpublishing System 3: PostingDate, Account#, Value and consuming data files. System 4: Date, Journal, Account, Amount So many external data formats; XML Different provides a popular and increasing Data Formats Different Representations for the samedemanded data format. supported / concepts in common data field CSV Once you have agreed on data field Journal: PJ, Payroll Journal, Payroll ASCII standardization, software applications require Date: 12-31-03, 20031231, 12/31/03 agreement on content in many cases. XBRL GL WKS provides enumerated values to supplement XML data standards to help in this area. 1
- 27. XBRL GL challenges local concepts of General Ledger. Holds More RIVET SOFTWARE 26
- 28. Internal Data exchange. AP Outsourced Travel and Expense AR Non-integrated point of sale GL IM External payroll provider Subsidiary with separate system PR RIVET SOFTWARE 1
- 29. From initial transaction. Invoice #: 10037 INVOICE May 2, 2003 Item Description Qty Extension 1078 Blue Widget 200 2,803.78 1083 Cyan Widget 100 1,402.93 Sub-total: 47,592.33 Freight: Total: 47,592.33 <documentType>invoice</documentType> <documentNumber>10037</document Number> <documentDate>2003-05-02</documentDate> 28
- 30. The ERP system actual/virtual: purchase orders sales orders PO AP, IM items OE AR, IM IM bomp employees customers vendors assets AR AP FA PR REPORTING GENERAL LEDGER
- 31. Facilitating web service assurance Mapping 1 Mapping 2 Spell Check Shipping Rate Check Credit Check Logistics Check Rules and Journalization Audit and monitoring tool RIVET SOFTWARE 30
- 32. Data and views Report Report Writer Select information from database(s), including joins Formulas create new data fields Filter the record set Add headers/footers, conditionals with record 1 groupings, derived totals based on sorts Concentration: Concentration: Data Fields Provide visual formatting Information Concepts RIVET SOFTWARE rules, like cross-tab
- 33. Scope and role of XBRL Representations Consolidation Transactional Internal External Investment, Processes Business Financial Economic XBRL Financial Lending, XBRL Operations Reportin Policymaking Reporting Regulation g GL FR Financial Publishers Central Companies Investors Participants and Data Banks Aggregators 1 Trading Management Auditors Regulators Partners Accountants Software Vendors RIVET SOFTWARE
- 34. XBRL GL works with XBRL FR. US XBRL Tax IAS GL Internal RIVET SOFTWARE 33
- 35. Benefits of XBRL for internal reporting. IMPROVES INTERNAL MANAGEMENT Speed Detail Cost of abilities of applications Learn from mistakes, evaluate changes from plans early Taxonomy - better communication from on top RIVET SOFTWARE 34
- 36. Benefits of XBRL for internal reporting. IMPROVES ASSURANCE DETAILS AGREEING OR RECONCILING TO REPORTING Internal auditing External auditing RIVET SOFTWARE 35
- 37. Benefits of XBRL for external users. IMPROVES SHARING DATA WITH BANKS Asset based lending Listing of open accounts from customers Listing of inventory IMPROVES SHARING DATA WITH ACQUIRERS IMPROVES SHARING DATA WITH PARTNERS 36 RIVET SOFTWARE
- 38. Todays internal tomorrows external? HOW ABOUT The same information from its source in greater detail - which may be tomorrow's external reporting? Bringing together internal groups to speak the same language? DRILL DOWN SUPPORT FROM EXTERNAL TODAY POSSIBLE (PARTIAL OR TOTAL) REPLACEMENT FOR FORMS TOMORROW RIVET SOFTWARE 37
- 39. EVERY SYSTEM AS XBRL System 1 System 2 System 3 XBRL GL XBRL GL XBRL GL Account# Account Number accountMainID Identificador de la Cuenta accountMainID accountMainID Description Account Description Descripci坦n Principal de la Cuenta accountMainDescription accountMainDescription accountMainDescription Amount Entry Amount Monto Monetario amount amount amount Posting Date Fecha de Asignaci坦n/Ingreso PostDate postingDate postingDate postingDate