XBRL-A New Reporting Style
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This document discusses eXtensible Business Reporting Language (XBRL). It begins with an agenda for the presentation. It then defines XBRL as a global standard for digital business reporting that connects financial reporting to the internet. It highlights features like unique tags for financial data, cost savings, and improved analysis. The document discusses how XBRL benefits investors and analysts by providing context and making data more granular. It provides timelines of XBRL adoption in the US and India, including mandatory filings. Finally, it lists some taxonomies developed for business reporting in India.
XBRL-A New Reporting Style
- 1. eXtensible Business Reporting Language Presented by: Group - 1 Members: Bishnu Panda Kailash Gupta Kalyan Kumar Das Subhasish Das 5/30/2012 Praxis Business School 1
- 2. Agenda XBRL What it is? Features of XBRL XBRL for investors and analysts XBRL events and market size in US XBRL events in India 5/30/2012 Praxis Business School 2
- 3. What is XBRL? XBRL (eXtensible Business Reporting Language) is a freely available, open and global standard which supports information modeling, exchanging business information and the expression of semantic meaning commonly required in business reporting. Global Standard for digital reporting. It connects the generation, exchange and consumption of business reports with the dynamic and interactive world of the internet. XBRL enhances the quality and efficiency of reports, for internal use or for external publication, reusing business and financial information. XBRL is based on XML (eXtensible Markup Language) developed by XBRL International, a non profit consortium with over 650 companies and agencies working together. XBRL uses related XML technologies such as XML Schema, XLink, XPath, and Namespaces. XBRL consists of financial facts and a set of taxonomies defining dependencies of such facts. XBRL Taxonomies are the vocabularies or dictionaries which the language uses. XBRL has a set of standard validation rules containing formulas for validating values. 5/30/2012 Praxis Business School 3
- 4. Features XBRL formatting can be done for financial and non-financial data: Unique identifying tags are applied to financial statements Supplier data Customer application forms Project information Employee data Regulatory submissions Other management information systems data Benefits: Applications: Better business reporting and analysis. Tax Returns Cost saving and faster Bank Call Reports More reliable and more accurate handling of data, Financial Statements Improved analysis for better quality of information and decision-making. General Ledger Avoids time-consuming manual comparison and re-entry of data. Event Reporting Internet Ready for transmission and direct use by all stake holders Audit Schedules Improvement in the speed of collating and analysing data Early users of XBRL included regulators viz. the U.S. Federal Deposit Insurance Corporation, the Australian Prudential Regulatory Agency (APRA) and the Committee of European Banking Supervisors (CEBS). 5/30/2012 Praxis Business School 4
- 5. XBRL for investors and analysts Packages explanatory contextual information around each data point Makes data more granular, more extractable Improve the accuracy, quality and transparency of corporate information Provides a common framework of definitions Enables easier comparison of multiple companies Reduces reliance on normalized data Improve the accuracy/quality of financial information in the marketplace Reduce errors in the information reported Improve the ability to compare and benchmark ones financials with peer companies 5/30/2012 Praxis Business School 5
- 6. XBRL events and market size in US Events: XBRL for Business Reporting in US: XBRL effort started in 1998 by Charles Hoffman XBRL for G/L Journal Entry Reporting XBRL for Financial Statements XBRL 2.0 December 2001 XBRL for Regulatory Filings XBRL for Business Events Reporting XBRL 2.1 December 2003 XBRL for Audit Schedules FDIC XBRL Contract Awarded June 2003 XBRL for Credit Filings SEC Solicits Market Feedback July 2004 Voluntary XBRL reporting (100 companies) 2008 US XBRL market size: Mandatory XBRL filing for 500 Public Companies NASDAQ: ~ 3,200 Public Companies (<$5 billions) June 2009 NYSE: ~ 2,800 Public Companies Mandatory XBRL filing for other big public companies (list TOTAL: ~ 6,000 Public Companies of companies to be announced) June 2010 Mandatory XBRL filing for all US public companies - June 2011
- 7. XBRL events in India Events: Fairly broad-based participation from various sectors: XBRL effort started in Jan 2007 by ICAI Formation of XBRL group with an objective of establishing forum for development of XBRL in India including its promotion and to act as general body of membership of XBRL India jurisdiction of XBRL International Carrying the task of XBRL in India forward, the XBRL Group established the XBRL India jurisdiction of XBRL International in Dec 2008 XBRL India was awarded the status of an Established jurisdiction capable of having a representative of India at the International Steering Committee (ISC), the governing body Taxonomies: of XBRL International in Dec 2010 General purpose taxonomy called Commercial and Industrial Taxonomy based on IFRS 2006 On 31 March 2011, MCA issued a Circular mandating all listed architecture. companies and certain unlisted companies, to file their Banking Taxonomy, an extension to the core Indian financial statements for the year ended 31 March 2011 XBRL C&I Taxonomy. onward using an XBRL format. Taxonomies for NBFCs, Insurance & Power Sectors in process. 5/30/2012 Praxis Business School 7
- 8. Thank You 5/30/2012 Praxis Business School 8
Editor's Notes
- #8: XBRL India is a company registered under section 25 of Companies Act, 1956. The company is facilitated by ICAI, incorporated for managing the affairs of Indian Jurisdiction of XBRL International. In the initial phase, the MCA mandate applies to: All companies listed in India and their subsidiaries, including overseas subsidiaries All companies having a paid up capital of INR 5 crore or above, or a turnover of INR 100 crores or aboveThe main objectives of the XBRL India jurisdiction:Promote and encourage the adoption of XBRL as the standard for electronic business reporting in IndiaDevelop and manage XBRL taxonomiesRepresent Indian interests within XBRL InternationalContribute to the international development of XBRLCurrently Available Products Automatic XBRL Filing XBRL Reverse Engineering Wizard XBRL Validator Instant XBRL Filing Editing Evolutionary TaggerC & I Taxonomy:This taxonomy was developed through a due consultative process where the Industry experts reviewed the draft taxonomy, thereafter it was exposed in the public domain for comments. After finalisation on the basis of comments, the taxonomy was acknowledged by XBRL International. This taxonomy has been developed to enable companies prepare their financial statements, viz., Profit and Loss Statement, Balance Sheet and Cash Flow Statement in XBRL format, based on the requirements of the accounting standards, Indian company law and the requirements under Clause 41 of the Listing Agreement. Components of Taxonomy:Schema Defines the elements used in the link basesPresentation link base Which defines the structure for displaying the data, along with the preferred label attribute.Calculation link base Establishes the arithmetical relationship of simple addition and subtraction, which is done by way of a weight attribute (1 or -1)Label link base Stores the labels about the concepts (it is the human readable name of the element)