1. 1 Defines Tags

2. 2 XBRL International is gaining strength XBRL activities occurring in— –United States –Canada –Australia –China & Hong Kong –Japan –Malaysia –New Zealand –Singapore –Taiwan –Germany –India –Ireland –Netherlands –Nordic Federation (Denmark, Norway, Sweden) –South Africa –Spain –Switzerland –United Kingdom And on a global level through the— –International Accounting Standards Council –International Press Telecommunications Council –International Standards Organization

3. 3 XBRL International is gaining strength On a Global level through the— –International Accounting Standards Council –International Press Telecommunications Council –International Standards Organization On a Country Level: –United States –Canada –Australia –China & Hong Kong –Japan –Malaysia –New Zealand –Singapore –Taiwan –Germany –India –Ireland –Netherlands –Nordic Federation (Denmark, Norway, Sweden) –South Africa –Spain –Switzerland –United Kingdom

4. 4 How we are organized – US Jurisdictional Working GroupChair CommunicationsChristy Reichhelm (Microsoft) DomainSergio de la Fe (KPMG) EducationNeal Hannon (IMA, Bryant College) Jenia Gorfunkel (S&P) LiaisonZach Coffin (KPMG) Liv Watson (Edgar Online Inc) SpecificationDavid Vun Kannon (KPMG) Luther Hampton (e-Numerate) StrategyLouis Matherne (AICPA) Mike Willis (PwC) ToolsEric E. Cohen (PwC) Web siteGeni Whitehouse (Navision) ProcessMike Willis (PWC) ObjectGary Gannon

5. 5 XBRL Impact "The explosive growth of the Internet is not only changing the way companies conduct their business, it also promises to forever alter the way they communicate business performance.” - CFO Magazine, February 2000

6. 6 XBRL Initiatives XBRL for Financial Statements XBRL for General Ledger XBRL for Journal Entry Reporting XBRL for Credit Reporting XBRL for Performance Press Releases XBRL for Risk Reporting XBRL for Regulatory Filings XBRL for Tax Filings XBRL for Assurance Schedules XBRL for Authoritative Literature XBRL for “Business” Reporting

7. 7 Who’s Embracing XBRL now? Software developers Using XBRL as the core technology for new products Database developers Building XBRL support into their products. Industry groups Deciding how information should be shared. Organizations Investigating how to tie their inter and intra company processes together.

8. 8 XBRL Support “I would like to see you develop valuation models that result in consistent, comparable and fair values of assets and liabilities. I would like to see you hone specific, but plain English definitions for the types of information you believe should be included in public disclosure. 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.” - Arthur Levitt, Chairman, U.S. Securities & Exchange Commission October 24, 2000, at the Fall Council of the AICPA (Las Vegas, Nevada)

9. 9 XML for Financial Reporting Enables a dramatic improvement in the processing of financial reports XBRL documents can be— –Prepared efficiently –Exchanged reliably –Published more easily –Analyzed quickly –Retrieved by investors simply to enable smarter investments

10. 10 XBRL is: –NOT a new accounting standards but enhances the distribution and usability of existing financial statement information –Enabler and an extension for relational database functionality for all financial statement information Benefits

11. 11 Problems XBRL Addresses Ineffective communication to investors Inefficient aggregation and analysis Inefficient creation of financial statements

12. 12 Why XBRL ?  Enable business reporting that leverages the Internet & XML  Effective access and analysis of business reports  Improve corporate communications with stakeholders

13. 13 Process Benefits: Lowering Financial Reporting Cost Who benefits Regulatory Filings Web Site Tax Return Trade Filings Printed Financials Accounting System Third Party Information Explanatory Text Today’s external reporting processes –Rework and delay –Ad hoc and non repeatable –No path forward

14. 14 Process Benefits: Lowering Financial Reporting Cost Who benefits Regulatory Filings Web Site Tax Return Trade Filings Printed Financials Accounting System Third Party Information Explanatory Text XBRL Documents Common interchange format and storage is good information management practice –Reduces redundancies & discrepancies –Repeatable processes using tools –A platform for continuous reporting

15. XBRL: Interoperability & Multiple Uses Other Sources of Information US GAAP Financial Statement In English US GAAP Financial Statement In Dutch US GAAP Financial Statement to the Web US GAAP Financial Statement to Print US GAAP Financial Statement to Cell Phone XBRL Other Sources of Information G/L Package XBRL ERP Custom Developed Systems Other Sources of Information XBRL

16. XBRL: Interoperability & Multiple Uses Other Sources of Information US GAAP Financial Statement EDGAR Filing Tax Filing Bank Filing Press Release XBRL Other Sources of Information G/L Package XBRL ERP Custom Developed Systems Other Sources of Information XBRL Investors & Creditors News Agencies And Others Government

17. Once Every Event is tagged in XBRL… Other Sources of Information IAS Financial Statement in German US GAAP Financial Statement In English French Tax Filing Canadian Banking Filing EDGAR 10k line item via Cell Phone XBRL Investors & Creditors News Agencies And Others Government Other Sources of Information G/L Package XBRL ERP Custom Developed Systems Other Sources of Information XBRL

18. XBRL Working Model: Planned Specifications External Financial Reporting Business Operations Internal Financial Reporting Investment and Lending Analysis Processes Participants Auditors Trading Partners Investors Financial Publishers and Data Aggregators Regulators XBRL for G/L Journal Entry Reporting XBRL for EDGAR Filings XBRL for Financial Statements XBRL for Tax Filings XBRL for Business Event Reporting Software Vendors Management Accountants Companies

19. 19 XBRL: A Fragment of a Raw Data $1,611 $1,648 CompanyFinancial Statement Line ItemLabelYearValue Coca Cola Co. Balance SheetCurrentAssets.Cashand CashEquivalents 19991611 Coca Cola Co. Balance SheetCurrentAssets.Cashand CashEquivalents 19981648  Raw Data in Spreadsheet…  Same Raw Data in XML (XBRL) Format

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22. 22 XBRL and the Emergence of ‘e- Standards’ E-Standards are fundamental HTML is the standard that enabled the web’s first ‘Big Step’ XML is the web’s next ‘Big Step’ –Over 200 XML-Based Specifications and Protocols exist, including— RosettaNet – computer company supply chain and trading webs OBI - Open Buying on the Internet - retail e-commerce FpML - Financial Products (Derivatives, Swaps, FX) ACORD XML - Insurance industry information exchange standards derived from EDI. –UN/CEFAC = EBXML XBRL is uniquely focused on business reporting

23. ASB IASC FASB IFAC SEC Territory Institutes Standard.orgs ( reporting vs ‘e’) Accounting / Auditing Reporting W3C OASIS;UN/CEFAC T (ebxml) xml.org RosettaNet ACORD ‘e-Business’ CPAs participate / lead in these What about these?

24. 24 BUSINESS XBRL Adds Reporting to E-Commerce Investors Aggregators RegulatorsCreditorsLendersTaxWebsite ERP G/L Packages CRM Orders A/P Delivery Customers Orders A/R Delivery Suppliers 2-way Transaction Creation One way One way

25. 25 XBRL Adds Reporting to E-Commerce BUSINESS Investors Aggregators RegulatorsCreditorsLendersTaxWebsite Transaction Creation ERP G/L Packages CRM Orders A/P Delivery Customers Orders A/R Delivery 2-way Suppliers One way One way XBRL BUSINESS REPORTING (e-)Commerce OTHER XML INITIATIVES

26. 26 Financial Institutions—and their Users SMALL BUSINESS provides FINANCIAL INSTITUTION with their information in XBRL and receives loan approval in less than a day instead of two days—or two weeks. With XBRL? Mechanics More Time for Analysis => Better Analysis => Less Risk Value-added Analysis and Decision-making? <10% Average Time for Loan Processing—1.75 days 90% + time spent on Mechanics Mechanics Analysis Mechanics Analysis Mechanics Analysis Mechanics Analysis Or Process more loans in the same amount of time

27. 27 Benefits to Today's Users 1.Reduce cost of analyzing and reporting financial information 2.Increase speed and efficiency of business decisions 3.Enhance the distribution and access of existing financial statement information 4.More readily exchanged 5.Increase and enhance analysis

28. 28 Benefits 1.Reduce cost of analyzing and reporting financial information 2.Increase the speed and efficiency of business decisions 3.Enhance the distribution and usability of existing financial statement information

29. 29 Example: Cost Reduction International Subsidiaries: Large multi-national corporation uses XBRL to quickly roll–up, analyze and publish the financial statements of numerous subsidiaries— in different countries with different languages using different GAAP on different computer systems

30. 30 Benefits 1.Reduce cost of analyzing and reporting financial information 2.Increase the speed and efficiency of business decisions 3.Enhance the distribution and usability of existing financial statement information

31. 31 Example: Efficient Decisions Major mutual fund company feeds XBRL-ized information to customers to differentiate their funds as more objective and reliable investments An investor uses XBRL to compare the financials for a range of companies— –Belonging to different revenue levels –Located within an industry sector –Along multiple analytical criteria

32. 32 Benefits 1.Reduce cost of analyzing and reporting financial information 2.Increase the speed and efficiency of business decisions 3.Enhance the distribution and usability of existing financial statement information

33. 33 Example: Credit Loan Approval: –Small Business provides Bank with their financial information in XBRL and receives loan approval in 1 minute instead of 2 days Credit Approval: –Company approves customer credit request with automated assessment processes facilitated by XBRL Line of Credit: –Company provides capital markets with financial information in XBRL and receives expedited line of credit

34. 34 XBRL Taxonomies Under Development  Commercial and Industrial Companies, US GAAP - Published  Federal Departments, US  Mutual Funds, US  Financial Institutions, US  Commercial and Industrial, IASC  Commercial and Industrial, German GAAP  Bank Call Reports - FDIC App to fin rep

35. 35 Summary FASTER –BETTER CHEAPER Our profession will have to follow technology and record business activity in an real-time mode.