taxonomy review jennifer s. moriarty, fasb

Taxonomy Review

Jennifer S. Moriarty, FASB

Yossef Newman, Deloitte

Sharyn Kohen, Ernst & Young

Taxonomy Review

Evolution of a Taxonomy Elements to Review Review Techniques Review Enablers Action Items

Evolution of a Taxonomy

US GAAP and International Financial Reporting Standards (IFRS) taxonomies created using:

Accounting and Reporting standards Accounting enablers (e.g. checklists) Financial statements XBRL tools

Participants: Trade organizations Public accounting firms Regulators

Evolution of a Taxonomy (Cont.)

Taxonomy Process Creators Domain groups Internal review Public review

Importance of Public Feedback

Consortium process: Public review Accuracy of taxonomies Area experts

Meet the needs of the ultimate users of taxonomies

Continuous public feedback is integral to effective taxonomy development

Public comments will be considered and incorporated where appropriate

Types of Reviews

Domain Industry Accounting Financial reporting

Technology Software validation Conformity with FRTA

Where do you find the taxonomies?

XBRL websitewww.xbrl.org

Under “What’s New: US releases 3 major

taxonomies for US GAAP…”

click on “Learn More…”

Choose the taxonomy you will review

Click on the BASI

taxonomy

Home page of the BASI taxonomy

Scroll down to

“Printout of taxonomy elements”

Select both PDF and Excel files of the Presentation Report

Save both PDF and

Excel taxonomy

files

Anatomy of an XBRL Element

XBRLElementXBRL

ElementFinancial

Reporting ConceptFinancial

Reporting Concept

XBRLElementXBRL

Element

Basic AttributesBasic Attributes

RelationshipsTo other Elements &

Information

RelationshipsTo other Elements &

Information

Anatomy of an XBRL Element

XBRLElementXBRL

Element

Basic Attributes

Basic Attributes Data type Data type

Balance TypeBalance Type

Period typePeriod type

DescriptionDescription

Tag Name (computer readable)Tag Name (computer readable)

Label(human readable)Label(human readable)

Monetary / String, etc.Monetary / String, etc.

Debit / CreditDebit / Credit

Instant / DurationInstant / Duration

“Amount paid in excess of the value assigned to the identifiable net assets acquired”.

“Amount paid in excess of the value assigned to the identifiable net assets acquired”.

IntangibleAssetsGoodwillIntangibleAssetsGoodwill

e.g. - “Goodwill”e.g. - “Goodwill”

Anatomy of an XBRL Element

XBRLElementXBRL

ElementPublisher : FASBName : Statement of Financial Accounting Stand.

Number : 142Paragraph : 23URI : http:/www.fasb.org/pdf/fas142.pdfURIDate : 2004-08-01

Publisher : FASBName : Statement of Financial Accounting Stand.

Number : 142Paragraph : 23URI : http:/www.fasb.org/pdf/fas142.pdfURIDate : 2004-08-01

Net Goodwill = Goodwill – Accumulated AmortizationNet Goodwill = Goodwill – Accumulated Amortization

Anatomy of an XBRL Element

RelationshipsTo other Elements &

Information

RelationshipsTo other Elements &

Information

CalculationCalculation

PresentationPresentation

ReferenceReference

Assets Cash & cash equivalents Property plant & equipment GoodwillTotal Assets

Assets Cash & cash equivalents Property plant & equipment GoodwillTotal Assets

Elements to Review Focus on accounting terms, not XBRL technology

Accounting: Concept Label (not XBRL technical name) Description Balance Type (e.g. Debit / Credit) Data type (e.g. monetary, string) Period type (e.g. duration, instant) References Presentation order Calculation (advance topic)*

Basic attributes

Relationships

Taxonomy in PDF

Balance Type

“Credit”

Period Type “Instant”

Date Type “Monetary”

Label “Accounts Payable”

Reference “APB

21”

Description “Amounts due to third parties for goods or

services received. Amounts have usually been invoiced”

Review Techniques

Comparison of taxonomies to: Company financial statements Internal accounting checklists / policies Accounting standards Industry Guides / common practice

Manual review of taxonomy Create instance documents (advanced topic)*

Review Techniques (Cont.)

Type of Feedback Missing terms Inaccurate information

Review performed by: Finance department Financial statement preparers Other accounting experts

Review Techniques (Cont.)

Depth of financial statement review Face of the financials Notes

Public taxonomy vs. Company extension

Review Techniques – Manual Review

Data Type “Monetary”

Balance Type

“Credit”

Period Type “Instant”

Label “Accounts Payable”

Description “Amounts due to third parties for

goods or services received”

Reference “APB

21”

Review Techniques

Balance Type “Credit”

Period Type “Instant”

Data Type “Monetary”

Label “Account

s Payable”

Reference “APB

21”

Description “Amounts due to third parties for

goods or services received”

Review against financial

statements

Review against Accounting

Standards, Industry Guides or Disclosure

Checklists

Comparison to Company financial statements

Look for the element “Goodwill”

in the taxonomy.

Comparison to financial statement Primary Terms Taxonomy Review of elements:

Balance type: Debit Period type: Instant Data type: Monetary Label: Goodwill Description: Amount paid in excess of the value

assigned to the identifiable net assets acquired. Reference: FASB Statement No. 142

Comparison to financial statement Primary Terms Taxonomy

Comparison to financial statement Primary Terms Taxonomy

Review the Presentation of the Elements“Statement of

Financial Position”

“Assets” is correctly listed on the Statement of Financial Position

“Cash and due from Banks” and “Interest Bearing Deposits in

Banks” are correctly listed as Assets on the

Statement of Financial Position

Review the Calculation of the Elements – Remember, Totals are on top!

Numerous types of line items for “Available for Sale Securities” total to the line item “Available

for Sale Securities”

All line items for “Marketable Securities” (e.g. Trading, AFS and

HTM) total to the line item “Assets”

“Assets” are included on the Statement of

Financial Position

Review Enablers

Reviewer’s Guide to Financial Reporting Taxonomies 1.0

PDF taxonomy reports Taxonomy editing software / instance creation

software GAAP Checklist, financial statements, accounting

standards Where to find information (XBRL.org) Feedback form

Where do I go for the Reviewer’s Guide?Start at the Reporting Taxonomy Framework webpage

Click on the BASI

taxonomy

Review Enablers – Reviewer’s Guide to Financial Reporting Taxonomies 1.0

On the homepage of the BASI Taxonomy

Scroll down to “Guidelines for

Taxonomy Review” The Reviewer’s Guide is

available in HTML and

Word

Feedback Form

Captures: Incorrect element attributes Missing elements

Where do I get the Feedback Form?Excel file of the Presentation Report

The Excel taxonomy file is the Feedback

Form

On the homepage of the BASI Taxonomy

Scroll down to “Printout of

taxonomy elements”

Feedback process – incorrect element attributes

c Assume that the balance type for

Goodwill was listed

incorrectly as a “Credit”

Feedback Form for BASI taxonomy – incorrect element attributes

Expand the row to view all the elements within the “Statement of Financial

Position”

This is the Excel file of the BASI taxonomy

you obtained from the

XBRL.org website

Feedback Form for BASI taxonomy – incorrect element attributes

Find the element “Goodwill”

on the Feedback Form

Include your comment in the column next to

the element “Goodwill”

Be Clear and

Concise!

Be Clear and

Concise!

Feedback Form for BASI taxonomy – missing element “Goodwill”

Assume the element “Goodwill” was

missing from the taxonomy

Feedback Form for BASI taxonomy – missing element “Goodwill”

For the element that is missing from the taxonomy include the following details: Element label: “Goodwill” Element description: “Amount paid in excess of the

value assigned to the identifiable net assets acquired” Balance type: “Debit” Period type: “Instant” Data type: “Monetary” Reference: “FASB No. 142”

Feedback Form for BASI taxonomy – missing elements

Find where the element “Goodwill”

should be presented in the taxonomy

Include new element detail

in the comment area

Missing element: Goodwill; description: Amt paid in excess of the value assigned to the identifiable net

assets acquired; Debit; Instant; Monetary; Reference: FASB No 142

Where do I send my Feedback Form?

Email the feedback form to the US Domain Working Group through Brad Homer at:

bhomer@aicpa.org

Don’t forget to include your contact information!

Action Items

Visit the XBRL international web-sites Review taxonomy review guide Review taxonomy applicable to you

Commercial & Industrial Banking and Savings Institutions Insurance In Process

Investment Management (public in November) Broker Dealer

Provide feedback 60 day review period – ending Nov 19th

Feedback form

Final release of taxonomies

Questions?

www.xbrl.org

XBRL Taxonomy Contact Point:

Brad Homer

bhomer@aicpa.org