what is xbrl dr paul booth technical & development manager, it faculty ?
DESCRIPTION
ICAEW Start with the familiar: HTML ‘The book Systema Naturae was one of the major works of the Swedish botanist, zoologist and physician Carolus Linnaeus.’ Systema NaturaeTRANSCRIPT
What is XBRL
Dr Paul BoothTechnical & Development Manager, IT Faculty
?
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the techie bitNot
Look under the bonnet?
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Start with the familiar: HTML
‘The book <i><b>Systema Naturae</b></i> was one of the major works of the Swedish botanist, zoologist and physician Carolus Linnaeus.’
<b>Systema Naturae</b> Systema Naturae
<i>Systema Naturae</i> Systema Naturae
<i><b>Systema Naturae</b></i> Systema Naturae
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What about XML?• Like HTML but a bit cleverer• A browser knows (from a Stylesheet) how to display it• Other programs can process it too• It’s all about tagging
<name>Mr John Smith</name><addr1>23 Acacia Avenue</addr1><addr2>Birmingham</addr2>
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Tagging• What does each tag mean?
•Is it <addr1> or <address firstline>?
• Will the code MIA send your bag to Miami International (USA) or Mian Yang (China)?
So, every tagging language needs a dictionary
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All sorts of tagging languages
• ebXML: ‘ebXML enables enterprises of any size, in any global region, to conduct business using the Internet’
• CML: ‘CML (Chemical Markup Language) is an approach to managing molecular information …’
• ThML: … and there’s even one for Theology!
• Tagging makes it easier to share data between users without manual re-keying• …and for computers to extract and process data
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… and now XBRL• eXtensible Business Reporting Language• Freely licensed standard, originated in
accountancy profession• It is XML – and cleverer still• As well as tagging data items
o it can show relationshipso … and how they have been calculatedo Uses a taxonomy
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What’s a taxonomy?
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Taxonomies• An XBRL taxonomy is the same sort of thing: a
‘dictionary’ and logical categorisation scheme for financial reporting concepts.
• Examples: ‘net profit’, ‘assets’, ‘equity’• In XBRL, taxonomies relate back to financial
reporting standards• Different taxonomy needed for different reporting
standards – in UK, UK GAAP or IFRS
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Transparent reporting, checking
• Each ‘fact’ (eg ‘Share premium = £293,900’) can be related back to the taxonomy.
• Items that are supposed to add up can be checked
• Definitions and context (eg currency, period, units) are there. Called up share
capital500
Share premium 293,900Profit and loss account
(258,892)
SHAREHOLDER’S FUNDS
35,508
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… and then there’s iXBRL
• Humans read the HTML • Computers read the XBRL tags
• Inline XBRL• HTML and XBRL in the same document
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Just a bit more background …
• XBRL already in use around the world
• SEC in the USA one of most significant
• In the UK, Companies House XBRL filing has been running for past four years.
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Companies House
• Currently the simplest companies – dormant and abbreviated accounts
• By end November 2009, 738,515 accounts e-filed at Companies House, of which 537,760 web filings and 200,755 using software
• Later this year, Companies House moves to iXBRL
• Eventually, a single filing for both HMRC and Companies House purposes.
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Companies House
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Companies House and HMRC
Companies House• 2006: voluntary XBRL for
small/simple companies
• Summer 2010: voluntary iXBRL for unaudited full accounts
• Summer 2011: voluntary iXBRL extended to all accounts
HMRC
• November 2009: voluntary iXBRL
• April 2011: mandatory iXBRL
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Why HMRC?• Analyse returns more efficiently• Target ‘problem cases’ – eg suspected fraud,
under-payment more effectively• Make processes less labour-intensive, therefore
cheaper• Enable better analysis of effects of possible
changes in legislation/tax rates