XBRL In the Classroom The Time is Now

1. XBRL In the ClassroomThe Time is Now Presented by Neal Hannon, Bryant College

2. What is the business problem ? Is XBRL right for the classroom today ? YES IF XBRL will soon become a dominant method of handling business reporting Other areas of business are also moving to XML enabled information. (HR, CRM, ERP, Insurance, etc.) • The crux of the problem for business is to develop a comprehensive system that is • All inclusive and • Transparent to the user

3. The Case for XML.. • XML - a computer markup language that is extensible (flexible … can be added to) • XML is actually a bare-bones set of syntax rules to markup any kind of text and data • XML provides the structure of the text or data • XML describes to humans & to computers what the data is … not how to display it XML has become the fastest growing technology for information transportation and exchange the world of computing has ever seen. Business Integrator Magazine says that nearly nine out of every ten enterprises claim that XML will be and important technology for their IT strategies over the next year

4. The Case for XBRL… The purpose of XBRL is “to enhance the flow of financial information through the creation of a globally useful language in which to describe financial facts and concepts.” David vun Kannon XBRL is uniquely positioned to Provide mobility and transportability to financial and business facts. Students in AIS, Advanced Accounting,Auditing, Consolidations, Mergers, Tax, Not-for-Profit will all be affected by XBRL

5. The Case for XBRL… Arthur Levitt, Former Chairman, SEC I would like to see you take your XBRL project a step further, providing account classifications for companies in Common industries. In short, I challenge you to turn all of this data into meaningful information for investors

6. The Case for XBRL… Business Week, November 5, 2001 SEC Chairman Pitt complains that financial Reports are backward-looking, hard to understand, and don't highlight the Information investors need. Some of the improvements he is considering: SLICE `N' DICE Accountants are developing XBRL, a way of coding financial reports on the Internet, that will let investors download and manipulate companies' numbers any way they like

7. The Case for XBRL Students will need to collect, interpret and report data in many different XML dialects XBRL provides a bridge not only to financial statements, but to all business reporting.

8. XBRL Business Uses Internal Uses include: Account analysis Balanced Scorecard Wireless, PDA Cell Phone Automated exception reporting The internal use of XBRL is just Beginning to be explored, brought on by XBRL for General Ledger in public beta. New XBRL releases are compliant with the latest version of W3C’s XML Schema

9. XBRL Business Uses External Uses include: SEC Filings IRS and State Tax Filing Wireless, PDA Cell Phone Annual Reports Creditor Reports Externally, XBRL focuses on the production of GAAP financial statements for the business financial reporting supply chain. The external focus of XBRL is evident by the heavy participation in XBRL.org by the AICPA and Big 5 Accounting firms

10. XBRL International International Accounting Standards and Major Countries are changing the way Accounting is conducted world-wide Hot spots of development include Australia, Singapore, Germany, Japan, followed by Canada, the Netherlands, Spain, South Africa, Hong Kong, Great Britain, and the Scandinavian countries.

11. Stig Enevoldsen (Chairman IASC) September 1998 “The fact is that we not only speak different accounting languages but also give different interpretations of the same events and transactions…… “I believe that the best way forward in accounting is to converge towards one single world-wide accounting language.”

12. Sir David Tweedie (current IASB Chairman) The mission of the newly-created IASB …isto increase the transparency of financial reporting byachieving a single, global method of accounting for transactions -- whether in Stuttgart, Sydney, Seattle or Singapore.

13. Need to define One Accounting LanguageOne Transaction Methodology Within the IAS Financial Reporting FrameworkTo achieve the objectives of High Quality Transparent Comparable Financial Statements IAS Philosophy Implications

14. The VisionTo produce High quality, Transparent, Comparable,General Purpose Financial Reporting to International Accounting StandardsUsing one accounting languageOne transaction methodologyWhich are useful for making economic decisions.

15. The Vision for XBRL is no different! Just do it Electronically in a binary environment With the Seamless Transfer Of Financial Information In a known state Without Human Intervention

16. Accounting Specification & DesignOne accounting language One transaction methodologyOne presentation methodologyto define all the facts required on an inclusive exclude basis for a binary environment for the seamless transfer of Financial Information in a known state without Human Intervention

17. The One Accounting Language ChallengeLanguage System of words & rules of a particular communityObjectiveUnambiguous globally understandable classifications Accounting classificationsBy nature and classScientifically extensibleA place for everything and everything in its placeTo classify items as yet unknownAbsolute precisionBinary environment no room for judgmentFact definition increases exponentially as judgment is eliminated

18. Mountain Zebra Hartmans ZebraZEBRAS Plains Zebra Quagga

19. Bergzebra Pyjama DonkeyZEBRAS Steppenzebra Kwagga

20. Zebra(Equus Zebra Zebra) (Equus Zebra Hartmannae)(Equus Quagga) (Equus Quagga Quagga) Grevy’s Zebra (Equus Grevyi)

21. Many Human Presentations One Fact in XBRL one fact with many labels For example profit / non profit organizations

22. One Accounting Language Lessons LearnedScientific language of accounting defines a conceptual structure for the language accounting facts within conceptual structureNames facts for information content Enterprise Information Value information Qualitative information Spoken language or Skins – same fact different labels economic - profit / non profit - public entity vs private enterprise gaap - different countries languages - dialects Establish facts then resolve labels Request fact clarification from IAS where ambiguous or undefined Manage fact convergence and label convergence separately

23. XBRL: Tag Once, Report Many Times IRS Financial Analysts Financial Data tagged in XBRL Style sheets Annual Report Management Team SEC

25. What software ‘sees’ is the differentiator and drives benefits

26. XBRL-enabled Financial Statements No Direct Connectionwith Details Financial System Drill Down Note: Without XBRL-GL, the connection from XBRL-enabled financial statements to transactional data stops at the financial system Transaction Details

27. Basics of XML are needed to understand how business events are captured and stored XML basics can be self-taught or self-directed over the Web XBRL is valid XML This is Accounting, not computer science I don’t have the time to teach XML, I need to learn it first. XBRL will soon go “under the covers” so I can ignore it. Do You Need to Teach XML?Yes No

28. XBRL Market Activities • MSDW SEC EDGAR filing • Singapore and Australia efforts • XBRL Academic Competition • “XBRL Essentials” and “Introducing XBRL: Decision Making in a Digital Economy” • Vendor support for XBRL • Jurisdictional Activity/Status

29. Vendor Implementations • KPMG’s “Columbus” • KPMG Consulting • Navision • Newtec • PPC • XBRL Solutions • SAP • FRS (South Africa) • FRx (Microsoft) • Hyperion • IBMATRIX • ACCPAC • CaseWare • Creative Solutions • e-Numerate • eKeeper

30. XBRL Media Summary • 213 articles for 12 months ended August 31, 2001 generating over 36 million impressions1 • Equivalent to over $6.1 million in annual advertising2 • Generated stories in major financial publications: CFO, American Banker, Times of London, Barron’s, Financial Executive, Financial Times, Financial Director, Securities Industry News, Securities Week, Wall Street + Technology, Pensions & Investments • Secured major wire stories: Dow Jones, Bloomberg, Reuters, Newsbytes News, ABIX • 24 total news releases issued by Consortium and AICPA 1-Does not include wire stories or Web stories which have virtually limitless impressions. 2-Based upon ad dollar equivalents extrapolated for a one-year period; does not include ad dollar equivalents for wire stories or Web stories.

31. Books, Articles, Videos • XBRL Essentials, Hoffman and Strand, June 2001 • Introducing XBRL, Hannon and Coffin, January 2002. • AICPA E-business Update Video and Workbook, 2001. • IMA National Conference Video • Over 300 Articles, Special Section in Strategic Finance Magazine (June 2001), Monthly XBRL Column • SoftwareAG XML video www.softwareag.com

32. XBRL Tools • Essentials include taxonomy builders, tools that map output to XBRL, style sheets for display.

35. Neal Hannonnhannon@bryant.eduXBRL Education Co-chair IMA IT ChairCredit to Dave Garbutt, FRS, SA