regis rivet ima presentation
Post on 21-Oct-2014
486 views
DESCRIPTION
TRANSCRIPT
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 [email protected]
Charlie Hymer, CPA Regional Account Manager, Rivet Software
Jordan Woodard Sr. Compliance Manager, Rivet Software
Assistant Professor, Regis University
3 RIVET SOFTWARE
Agenda
XBRL Explained
SEC Mandate for XBRL
Internal Reporting
Mythbusters 2012 – XBRL
Business Cases
Final Thoughts
Questions
3 RIVET SOFTWARE
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”
4 RIVET SOFTWARE
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
9 RIVET SOFTWARE
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.
10 RIVET SOFTWARE
Entities, filings and facts by phase.
* Data as of 7-27-2012 @ 7:54 Note: • Total entities of 8,864 • Total filings of 39,897 • Total fact 20,126,780* *includes duplicated facts
507
1381
6976
No. of Entities
5772
5056
29069
No. of Filings
6000567
3197389
10928824
No. of Facts
Phase 1
Phase 2
Phase 3
• Phase 1 - 5 Billion Market Cap • Phase 2 - Accelerate Filers • Phase 3 - Remaining Public Companies
11 RIVET SOFTWARE
Why it matters.
“I just sent over the 10-Q to my boss to review. I only started it yesterday morning... I usually work over the weekend and spend a few late nights during the quarter, but I 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
No more weekends at the office.
12 RIVET SOFTWARE
What’s in it for you?
Use one Word document to file
everything.
Work together w/ your team in real-time.
No more keying in data. Instead, Link it.
No more keying in data. Instead, Link it.
Work together w/ your team in real-time.
13 RIVET SOFTWARE
Why it matters.
“I just sent over the 10-Q to my boss to review. I only started it yesterday morning... I usually work over the weekend and spend a few late nights during the quarter, but I 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
No more weekends at the office.
17 RIVET SOFTWARE
Internal Reporting: Three Tracks Edit reports
Ad hoc reports Posting reports
Daily cash/AR/AP Performance
Primarily for
internal use
only
Preparation for
external use
More detailed
versions of
external reports Segment
PII*
* Personally identifiable information
Financial
Tax
18 RIVET SOFTWARE
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
19 RIVET SOFTWARE
Types of internal reporting:
OPERATIONAL AND ADMINISTRATIVE MANAGEMENT
• Planning • Control • Decision making
INTERNAL REPORTING DRIVES • Procurement • Staffing and scheduling • Management and direction • Cash management • Preparation for external reporting …
PREPARATION FOR • Financial • Statutory • Legal • Social • Environmental reporting
21 RIVET SOFTWARE
ASB BLT
HDL
AFT TGI FRY
DRW SWG
QYD DLY
BST
WIU
ASB
ZIS XOI CUI
RMO
DLY XPS
KYF
KFC
WHR
JIA GEX
FQA VUH
HCO
WKD
ECP
SKD
MFP
WCP
DKE AJT
Old world
22 RIVET SOFTWARE
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?
23 RIVET SOFTWARE
Filling in the gaps between GAAPS.
BUSINESS
Investors
Aggregators
Regulators Creditors Lenders Tax Website
Transaction Creation
ERP G/L Packages CRM
•Orders
•A/P
•Delivery
Customers •Orders
•A/R
•Delivery
2-way 2-way
Suppliers
One
way
One
way
XBRL BUSINESS REPORTING
(e-)Business X12, UBL, CEFACT FORUM, Other XML INITIATIVES
XBRL GL Journal Taxonomy Detail
Accounting
recognition/
classification
Intra system Detail to summary
24 RIVET SOFTWARE
Data in internal reporting.
CONSOLIDATIONS DATA MIGRATION ARCHIVAL DATA TRANSFER AUDIT TRAIL
1
Basic challenge: similar data, but...
Different Data Dictionaries: Field names, field order
System 1: AccountNo, Amount, Date
System 2: MonetaryAmount, PostDate, AccountNumber
System 3: PostingDate, Account#, Value
System 4: Date, Journal, Account, Amount
Similar Data
Account, Amount, Date
Different Representations for the same concepts in common data field
Journal: PJ, Payroll Journal, Payroll
Date: 12-31-03, 20031231, 12/31/03
Different
Data Formats
CSV
ASCII
WKS
XBRL GL provides platform for agreed-upon and well defined list of concepts – make sure my
“Account” and your “Account” means the same thing (not bank account or customer account but
GL account.)
Based on XML, XBRL GL is order independent; sharing element names for import/export means that AccountNo, AccountNumberm Account# and Account will all be express as one common name; applications will know what to expect inpublishing
and consuming data files.
So many external data formats; XML provides a popular and increasing
supported / demanded data format.
Once you have agreed on data field standardization, software applications require agreement on content in many cases. XBRL GL
provides enumerated values to supplement XML data standards to help in this area.
1 RIVET SOFTWARE
Internal Data exchange.
Outsourced Travel and Expense
External payroll provider
Non-integrated point of sale
Subsidiary with separate system
AP
AR
IM
PR
GL
28
From initial transaction. I N V O I C E May 2, 2003 Invoice #: 10037
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>
FA
The ERP system actual/virtual:
GENERAL LEDGER
AR
IM bomp
AP PR
customers vendors
items
employees
OE AR, IM
PO AP, IM
sales orders
purchase orders
assets
REPORTING
30 RIVET SOFTWARE
Facilitating web service assurance Mapping 1 Mapping 2
Spell Check
Shipping Rate Check
Credit Check
Logistics Check
Rules and Journalization
Audit and monitoring tool
1
RIVET SOFTWARE
Data and views Report Writer
Select information from
database(s), including joins
Formulas create new data
fields
Add headers/footers,
conditionals with record
groupings, derived totals
based on sorts
Filter the record set
Provide visual formatting
rules, like cross-tab
Report
Concentration: Data Fields Concentration: Information Concepts
1
RIVET SOFTWARE
Scope and role of XBRL
External Financial Reporting
Business Operations
Internal Financial Reportin
g
Investment, Lending,
Regulation
Processes
Participants
Auditors Trading Partners
Investors
Financial Publishers and Data
Aggregators
Regulators
Software Vendors
Management Accountants
Companies
Economic Policymaking
Central Banks
Transactio
nal
Rep
resentatio
ns
Co
nso
lidatio
n
XBRL GL
XBRL FR
34 RIVET SOFTWARE
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
35 RIVET SOFTWARE
IMPROVES ASSURANCE DETAILS AGREEING OR RECONCILING TO REPORTING • Internal auditing • External auditing
Benefits of XBRL for internal reporting.
36 RIVET SOFTWARE
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
Benefits of XBRL for external users.
37 RIVET SOFTWARE
Today’s internal …tomorrow’s 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
System 3 System 1
Identificador de la Cuenta
Descripción Principal de la Cuenta
Monto Monetario
Fecha de Asignación/Ingreso
Account Number
Account Description
Entry Amount
Posting Date
Account#
Description
Amount
PostDate
System 2
accountMainID
accountMainDescription
amount
postingDate
accountMainID
accountMainDescription
amount
postingDate
accountMainID
accountMainDescription
amount
postingDate
XBRL GL
XBRL GL
XBRL GL
EVERY SYSTEM AS XBRL