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Overview of the XBRL-US Financial Reporting Taxonomy Framework

Overview of the XBRL-US Financial Reporting Taxonomy Framework. Jeffrey Naumann, AICPA, Senior Technical Manager. Objectives.

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Overview of the XBRL-US Financial Reporting Taxonomy Framework

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  1. Overview of the XBRL-US Financial Reporting Taxonomy Framework Jeffrey Naumann, AICPA, Senior Technical Manager

  2. Objectives • The US Financial Reporting Taxonomy Framework is a collection of XBRL taxonomies that can be used to express the financial information for both public and private companies across all industry sectors. • Different components of the framework can be used for different reporting purposes • New components will be added over time to cover more diverse reporting needs.

  3. Understanding Taxonomy Structure The US Financial Reporting Taxonomy Framework is a collection of XBRL taxonomies that can be used to express the financial statement based reports of both public and private companies across all industry sectors. Data Components Taxonomy Components Schema Income Statement Notes to the Financial Statements Balance Sheet Reference Linkbase Label Linkbase Managements Discussion & Analysis Statement of Cash Flow Presentation Linkbase Definition Linkbase Calculation Linkbase Other Non-GAAP Components Statement of Equity

  4. Industry Dimensions Commercial & Industrial Banking & Savings Insurance Primary Terms Financial Services Terms

  5. Modularity Goals • In developing the framework, the following goals were used to determine how to modularize the taxonomies: • Minimize duplicate elements for a single concept between taxonomy components • Ease maintenance of the taxonomies • Ease company extension and instance creation

  6. Primary Terms(usfr-pt) Financial Services Terms(usfr-fst) Global Common Document(int-gcd) SEC Certification(usfr-sec-cert) Commercial & Industrial (us-gaap-ci) Banking and Savings Institutions (us-gaap-basi) Insurance (us-gaap-ins) Management Report(usfr-mr) Oil & Gas (us-gaap-og) Coming Soon Broker Dealers (us-gaap-bd) Coming Soon Investment Management (us-gaap-im) Coming Soon AccountantsReport(usfr-ar) MD&A (usfr-mda) Company Extension Instance Document US Financial Reporting Taxonomy Framework

  7. Primary Terms(usfr-pt) Financial Services Terms(usfr-fst) Global Common Document(int-gcd) SEC Certification(usfr-sec-cert) Commercial & Industrial (us-gaap-ci) Banking and Savings Institutions (us-gaap-basi) Insurance (us-gaap-ins) Management Report(usfr-mr) Oil & Gas (us-gaap-og) Coming Soon Broker Dealers (us-gaap-bd) Coming Soon Investment Management (us-gaap-im) Coming Soon AccountantsReport(usfr-ar) MD&A (usfr-mda) Company Extension Instance Document Stand Alone Add-ons • Self-contained taxonomies that may be used by creators of XBRL Reports. • Are not referenced or imported by the GAAP Industry Extension Taxonomies • May be updated, superseded or replaced by other external components independent of changes to the Industry Extension Taxonomies • Can be imported into company extension taxonomies or used directly in instance documents

  8. Primary Terms(usfr-pt) Financial Services Terms(usfr-fst) Global Common Document(int-gcd) SEC Certification(usfr-sec-cert) Commercial & Industrial (us-gaap-ci) Banking and Savings Institutions (us-gaap-basi) Insurance (us-gaap-ins) Management Report(usfr-mr) Oil & Gas (us-gaap-og) Coming Soon Broker Dealers (us-gaap-bd) Coming Soon Investment Management (us-gaap-im) Coming Soon AccountantsReport(usfr-ar) MD&A (usfr-mda) Company Extension Instance Document Common Terms • Foundational building blocks for the Industry Extension Taxonomies • Include elements for accounting concepts that are common to multiple industries • Also includes relationships (presentation & calculation) where the relationships are consistent for all industries

  9. Primary Terms(usfr-pt) Financial Services Terms(usfr-fst) Global Common Document(int-gcd) SEC Certification(usfr-sec-cert) Commercial & Industrial (us-gaap-ci) Banking and Savings Institutions (us-gaap-basi) Insurance (us-gaap-ins) Management Report(usfr-mr) Oil & Gas (us-gaap-og) Coming Soon Broker Dealers (us-gaap-bd) Coming Soon Investment Management (us-gaap-im) Coming Soon AccountantsReport(usfr-ar) MD&A (usfr-mda) Company Extension Instance Document Industry Extension Taxonomies • Built on top of the concepts defined in the common terms layer • Adds relationships between these concepts using the presentation and calculation linkbases • Includes elements for accounting concepts specific ONLY to a single Industry Taxonomy • The primary taxonomy that users creating company extensions or instance documents will deal with

  10. Primary Terms(usfr-pt) Financial Services Terms(usfr-fst) Global Common Document(int-gcd) SEC Certification(usfr-sec-cert) Commercial & Industrial (us-gaap-ci) Banking and Savings Institutions (us-gaap-basi) Insurance (us-gaap-ins) Management Report(usfr-mr) Oil & Gas (us-gaap-og) Coming Soon Broker Dealers (us-gaap-bd) Coming Soon Investment Management (us-gaap-im) Coming Soon AccountantsReport(usfr-ar) MD&A (usfr-mda) Company Extension Instance Document Extensibility • Companies using the framework may extend taxonomies to reflect specific reporting practices • Should always use standard taxonomy terms where they are available • May use terms from one or more industry extensions

  11. For more information • http://www.xbrl.org/us/usfrtf • Framework documentation • Individual taxonomy documentation

  12. Taxonomy Development Process & Status of the XBRL-US Financial Reporting Taxonomy Framework Campbell Pryde - KPMG

  13. Goals for 2004 • Develop and release a broad range of industry extension taxonomies • Validate the completeness and coverage provided by existing taxonomies

  14. Taxonomy Inventory • Taxonomy development plans are focused on industry extensions that will cover the highest percentage of potential adopters Public Working Draft - Available Now: Commercial & Industrial Banking and Savings Institutions Insurance (Property & Liability and Life & Health) Internal Working Draft: Investment Companies In Process : Broker Dealer Oil & Gas Next Year : Health Care Airlines Construction Contractors

  15. Key Release Dates Internal Working Draft Public Working Draft Final Commercial & Industrial Banking and Savings Institutions Insurance (P&C and Life & Health) Complete September December Investment Companies September November January 2005 Broker Dealer Oil & Gas December February 2005 April 2005 Health Care Airlines Construction Contractors March 2005 May 2005 July 2005

  16. Collaborative Development Process XBRL-US Members Accounting Knowledge Technical Knowledge FASB Pronouncements Project Management XBRL Specification 2.1 Financial Statement Checklists XML Schema Authoritative Literature Software Development EDGAR Filings Linkbases Industry Guides Taxonomy Validation Data Modeling Accounting Trends & Techniques

  17. Taxonomy Best Practices • Financial Reporting Taxonomy Architecture (FRTA) • Sets out a recommended design architecture and establishes rules and conventions which help make taxonomies more usable and efficient.  • Liaison Efforts • Knowledge sharing with other jurisdictions building large financial reporting taxonomies • Regular meetings and continuous dialogue with IASB taxonomy development team

  18. Taxonomy Review • Moderate Use in 2002 & 2003 • Individual Company Efforts: • Morgan Stanley, Microsoft, Edgar On-line, … • Joint Market Demonstration Projects: • NASDAQ Demonstration • XBRL For Earnings Releases • Bank Borrower/Lender Reporting • AICPA XBRL Implementation Task Force • Significant Activities in 2004 • Review of EDGAR filed Documents • Wider Industry Involvement • Moving Towards Online Review Tools and Feedback

  19. Due Process • XBRL-US Developed Taxonomies adhere to robust due process to ensure quality and wide supply chain agreement • 30 day Internal Review Period where taxonomies are open to comment by XBRL members • 60 day Public Review Period where taxonomies are publicly available for comment • Feedback is assessed by XBRL-US for inclusion in the taxonomies • Taxonomy release requires approval of XBRL-US Domain Working Group and XBRL-US Steering Committee

  20. XBRL International Process • XBRL International has developed processes to ensure technical quality & consistency • The consortium is moving into a new, more formal phase. • We are trying to ensure that taxonomies are built to defined levels of XBRL technical excellence. • But we are moving to a two tier level of recognition of the way that concepts are encapsulated. • Acknowledgement means that the taxonomy has been reviewed and is legal XBRL. • Approval means that the taxonomy has been reviewed and meets defined levels of technical best practice.

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