1. | 1 | | | XBRL Meets the Needs of Business April 19, 2002 Bryant College XBRL Educational Resource Center

2. | 2 | | | Liv A. Watson Director – Edgar Online, Inc XBRL Liaison Chair E-Mail: Lwatson@Edgar-Online.com Phone: 203.852.5703 The Next Technology Revolution XML XBRL 55th Annual Conference of Accountants University of Tulsa, OK April 25, 2001

3. | 3 | | | EDGAR Online, Inc.is EDGAR Online, Inc. is 1.the leading business-to- business and Web-based provider of business, financial and competitive information derived from U.S. Securities and Exchange Commission data and a developer of Internet-based financial and business system solutions. EDGAR ® ® NLINE O O SM www.edgar-online.com www.freeedgar.com www.ipo-express.com www.insidertrader.com www.fd.express.com

4. | 4 | | | Today’s Objectives  Overview of XML & XBRL  Show you how this technology makes doing E- Business:  Faster  Cheaper  Better  Conclusion

5. | 5 | | | Find the best solution to connect the nine points together with no more than four straight lines without lifting your writing instrument.

6. | 6 | | | What assumptions are you making?

7. | 7 | | | If you do not assume that you cannot extend your lines beyond the imaginary square formed by the box the puzzle becomes easier to solve.

8. | 8 | | | Henry Dudeney was born 144 years ago – 10 th April 1857 Dudeney is best known for his publications of mathematical problems and pastimes, some of which provoked serious mathematical research

9. | 9 | | | “Everything “that can be invented “has been invented.” Charles H. Duell Commissioner of U.S. Office of Patents, urging President William McKinley to abolish his office, 1899

10. | 10 | | | Don’t assume that the lines must pass through the center of the dots.

11. | 11 | | | Don’t assume that the line must be thin.

12. | 12 | | | Just to prove I can do it with two lines.

13. | 13 | | | Don’t assume that the paper must be flat.

14. | 14 | | | If you rip the paper into nine segments, you can stack them and poke your point through all at once.

15. | 15 | | | Don’t assume that you cannot crease the paper.

16. | 16 | | | Don’t assume that the lines cannot extend beyond the edge of the paper.

17. | 17 | | | Don’t assume that you cannot rip the paper.

18. | 18 | | | From Evansville Courier and Press Is There A Problem?

19. | 19 | | | Let’s move up the Value Chain TransactionsData InformationKnowledge DecisionsTransactionsData InformationKnowledge DecisionsTransactionsData InformationKnowledge DecisionsTransactionsData InformationKnowledge Decisions

20. | 20 | | | Searching for the word “Mercury” on the Web can provide search results such as-- Hg Content—without Context

21. | 21 | | | Simple problem: 4921 results in a typical search (e.g. “IBM Fixed Assets”)

22. | 22 | | | Evolution to Web Services Technology Innovation FTP, E-Mail, Gopher Web Pages Web Services TCP/IPHTMLXML Connectivity Presentation Automation Browse the Web Program the Web Text Files

23. | 23 | | | XML XML stands for: eXtensible Markup Language Universally accepted method of exchanging information

24. | 24 | | | eXtensible Markup Language  ……is a meta markup language the World Wide Web Consortium (W3C) considers a universal standard for describing both structured data and the behavior of applications that process the language.

25. | 25 | | | What Is XML?  “XML is a platform-independent, self-describing, expandable, standard data exchange format

26. | 26 | | | XML is Platform Independent  Windows  Unix  Macintosh  Mainframe  Linux

27. | 27 | | | XML is Self-Describing  Example:  July 26, 1998  Describes the information, not the presentation  Format neutral

28. | 28 | | | XML is Expandable  Whereas HTML has a fixed set of tags ,,  XML lets you create your own tags 

29. | 29 | | | How does it work?  XML gives meaning to information through the use of tags Liv A. Watson Edgar Online Inc. Director 22 Caution.. …Just because something is.. Does not mean it is accurate?

30. | 30 | | | What is ‘XML’? Not  What XML is Not  Not  Not a religion.  Not  Not the solution to all world problems.  Not  Not a solution for all electronic commerce problems.  Not  Not a solution to all legal-technology problems. Tool  XML is a Tool Really Cool (Powerful) Tool!  XML is a Really Cool (Powerful) Tool! XML can be used wisely and unwisely.  Like all tools, XML can be used wisely and unwisely.

31. | 31 | | | Why is XML so Important?  Portable  Vendor neutral  Readable data format  More flexible and easier to use than EDI  All major software products are becoming “XML” enabled  Defacto standards for data exchange  Enabling new levels of interoperability

32. | 32 | | | XML  Widely expected to reduce cost of publishing to the Net by as much as 50%.  And by next year … Gartner Group prediction 70% of all B2B transactions executed on the Web will be done using XML.

33. | 33 | | | Who defines the tags?  Tags are defined by industry consortiums  Each industry’s standard tags are commonly referred to as a taxonomy

34. | 34 | | | Astronomy Aerospace Music Industry Publishing or Mythology Chemical Industry Auto Industry “Content in Context” (Industry-specific)

35. | 35 | | | Who’s Building Taxonomies?

36. | 36 | | | Defines Tags

37. | 37 | | |

38. | 38 | | | Additionally…  Confirmed New Members (as of 15 November 2000):  Deutche Bundesbank  U.S. Department of Defense (DFAS)  Dresdner Kleinwort Benson  Nikkei (Nihon Keizai Shimbun)  New River  Practitioners Publishing Company  National Center of Charitable Statistics  Seattle Pacific University, Center for Professional Development  Global Filings  Business Wire  Hong Kong Society of Accountants  Innovision

39. | 39 | | | 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)  Spain  Switzerland  United Kingdom  And on a global level through the—  International Accounting Standards Council  International Press Telecommunications Council  International Standards Organization

40. | 40 | | | How we are organized – US Jurisdictional Working GroupChair CommunicationsChristy Reichhelm (Microsoft) DomainSergio de la Fe (KPMG) EducationNeal Hannon (IMA) Jenia Gorfunkel (S&P) LiaisonZach Coffn (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

41. | 41 | | | 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

42. | 42 | | | XBRL Documents  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

43. | 43 | | | As Presented on the Web

44. | 44 | | | Who’s Embracing XML now?  Software developers Using XML as the core technology for new products  Database developers Building XML support into their products.  Industry groups Deciding how information should be shared.  Organizations Investigating how to tie their inter and intra company processes together.

45. | 45 | | | 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)

46. | 46 | | |  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

47. | 47 | | |  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

48. | 48 | | | Problems XBRL Addresses  Ineffective communication to investors  Inefficient aggregation and analysis  Inefficient creation of financial statements

49. | 49 | | | Why XBRL ?  Enable business reporting that leverages the Internet & XML  Effective access and analysis of business reports  Improve corporate communications with stakeholders

50. | 50 | | | 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

51. | 51 | | | 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

52. | 52 | | | 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

53. | 53 | | | 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

54. | 54 | | | 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

55. | 55 | | | 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

56. | 56 | | | XBRL: not a Transaction Protocol  XBRL is merely a format to serialize complex, structured financial data: e.g., statements, G/Ls.  Therefore, it cannot replace OFX, ebXML, ANSI X.12 Trans Set 821, OMG G/L Spec,...  Future message sets in those protocols could include XBRL tagged data if they need to send financial statements in the message body.  XBRL provides a framework and an AICPA approved vocabulary that can be extended to many other reporting frameworks. What it is

57. | 57 | | | XBRL: not an accounting standard  Means of communicating  Current GAAP  Current practice  Flexible standard  Future standards  Future general practice

58. | 58 | | | XBRL Impact "Coming down the road are standards like XML and XBRL that take data handling a major step forward from HTML, the current web standard. With these new standards, plus those for accounting, it will be possible to scan a universe of corporate data across the web and extract, say, the chairman's report for all companies with a certain market cap, EBITDA, and gearing. …

59. | 59 | | | XBRL: A Fragment of a Raw Data $1,611 $1,648 CompanyFinancial Statement Line ItemLabelYearValue Coca Cola Co. Balance SheetCurrentAssets.Cashan dCashEquivalents 19991611 Coca Cola Co. Balance SheetCurrentAssets.Cashan dCashEquivalents 19981648  Raw Data in Spreadsheet…  Same Raw Data in XML (XBRL) Format

60. | 60 | | |

61. | 61 | | | What software ‘sees’ is the differentiator and drives benefits (here is an example)

62. | 62 | | | Importance of Reporting ” John Chambers Cisco CEO Year End Earnings Release Call August 10, 1999 “ …[W]hat excites the CEO is the ability to know what the business is doing at any given point in time, react quickly to market shifts and competitive threats and remain in tight control while empowering employees to make informed decisions more quickly.

63. | 63 | | | “ ” The Virtual Close … has, in my opinion, just as much impact on a company’s future success or lack thereof as the well- published e-commerce area. John Chambers Cisco CEO Year End Earnings Release Call August 10, 1999 Best Practice

64. | 64 | | | XBRL Impact  “ … If Europe moves quickly to take up these standards, it could give them an attractive lead in the race to accessible and comparative key data that would stimulate investor interest. It would undoubtedly spawn a plethora of research tools that would be useful to both private and professional investors.”   - Investors Chronicle, August 9, 2000

65. | 65 | | | 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 financial reporting

66. | 66 | | | ASB IASC FASB IFAC SEC Territory Institutes Standard.orgs ( reporting vs ‘e’) Accounting / Auditing Reporting W3C OASIS;UN/CEFACT (ebxml) xml.org RosettaNet ACORD ‘e-Business’ CPAs participate / lead in these What about these?

67. | 67 | | | The range of what is under development today………... HR CRM ACORD ANX RosettaNet FpML CHEMX “Horizontals” (Infrastructure) there are others….. “Verticals” (Industry Supply Chains) there are others……. Etc. XBRL is uniquely focused on business reporting

68. | 68 | | | 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

69. | 69 | | | 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

70. | 70 | | | What is ebXML  Electronic business XML - ebXML  Joint effort of the United Nation/CEFACT and OASIS  “Create a Single Global XML Framework Solution”  18 month project

71. | 71 | | | ebXML  A global electronic market place where enterprises of any size, anywhere can:  Find each other electronically  Conduct business through the exchange of XML based messages  Using standard message structures  According to standard business process sequences  With clear business semantics  According to standard or mutually agreed trading partner agreements  Using off the shelf purchased business applications

72. | 72 | | | Main ebXML concepts  Business Messages – Expressed in XML  Business Processes – Defined in UML, Expressed in XML  Business Service Interface – Handles one role in a business process – Expressed in XML  Trading Partner Agreement – Specifies protocols properties required for two specific business service interfaces to talk to each other – Expressed in XML  Transport and Routing Layer – Moves the actual XML data between business service interfaces

73. | 73 | | |  Reduces Cost / Enhances Revenue  Improves Financial Reporting  Improves Audit Quality  Improves Client Satisfaction Benefits 05Audit.scm

74. | 74 | | | Key XBRL Components  XBRL / XML Specification (XBRL.org)  Global architecture/technology  XBRL hierarchical vocabulary (jurisdiction/industry)  Dictionary of terms by jurisdiction/industry sector  Style Sheets(preparer)  XBRL enabled tools(market) XBRL - What

75. | 75 | | |  Market driven model  Start simple, be inclusive  Broad supply chain participation  Members support XBRL  Members do not compete on the “framework”  Build structure & systems to support open community & market development Key to our Success

76. | 76 | | | On the Independent Audit “[T]he audit remains rooted in historical reviews while transactions are increasingly processed in a real-time manner.  … We believe real-time auditing is not only possible, but it is necessary for the independent audit to survive in the information age.” - Emerson’s 2000 Big Five Annual Report, p. 14

77. | 77 | | | Steps in Technology Acceptance Visionaries Taxonomy Simplification/Tools Acceptance

78. | 78 | | | Research Issues Financial Accounting  How will XBRL cope with reporting on intangibles?  How are we going to handle comparability? Across industries? Across countries?  What is the impact of the availability of “real time” data on decision making for a larger group of end users?  What are the characteristics of adopting firms? Voluntary disclosure/dissemination.  Will early adopters have a “halo” effect?  What will be the impact of “faster, cheaper, better” reporting on securities markets?

79. | 79 | | | The Internet Changes Everything  Preparers  Get hold of your business and demonstrate your value.  Auditors  Keep audited financial reporting relevant.  Intermediaries  Play a role or get bypassed.  Analysts  Add value or lose value.  Creditors  Web-enable or lose customers.  Investors  Sort through the ocean of information to make good decisions

80. | 80 | | | The 21 st Century Annual Report (ICAEW 1998)

81. | 81 | | | XML Document XML Document Core Schema Core Schema Company Specific Vocabulary Industry Specific Vocabularies Transformatio n Tools The XML Puzzle

82. | 82 | | | How XML Works Improves the way companies -- and applications -- share information Enjoys strong industry and vendor support How XML Works

83. | 83 | | | Who Benef its?

84. | 84 | | | 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

85. | 85 | | | Enabling Technologies Applications Business Issues PCs Financial Applications Internal Control IS Consulting Client & Consumer Producer & Creator Assurer & Advisor Technology enables change Business Opportunities

86. | 86 | | | Enabling Technologies Applications Business Issues XBRL XML New Reporting Systems Data Centric ???? Client & Consumer Producer & Creator Assurer & Advisor Technology enables change Business Opportunities

87. | 87 | | | XBRL Working Model: Supply Chain & Beneficiaries External Financial Reporting Business Operations Internal Financial Reporting Investment and Lending Analysis Processes Participants Auditors Trading Partners Investors Financial Publishers and Data Aggregators Regulators Today XBRL for Financial Statements Software Vendors Management Accountants Companies

88. | 88 | | | 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

89. | 89 | | | 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

90. | 90 | | | 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

91. | 91 | | | 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

92. | 92 | | | 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

93. | 93 | | | 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

94. | 94 | | | 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

95. | 95 | | | 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

96. | 96 | | | How Do You Get There? Needs Assessment Design Solution/Business Plan Training & Education Implementation

97. | 97 | | | Does XML Shortcomings? Lots of Hype, not a solution for everything Not a replacement for integration and middleware tools and middleware tools There are many different standards among industries Standards still evoloving But, you can’t wait while the standards evolve….

98. | 98 | | | XBRL Development & Adoption

99. | 99 | | | Additional Education Sources  www.xbrl.org - Student Competition  www.xml.org  www.ebxml.org  www.w3.org  www.rosettanet.org  www.ibm.com/developer/xml  www.microsoft.com/industry/biztalk

100. | 100 | | | So when will this happen?? A.Never. B.After I retire. C.Before I retire but too late for me to have to worry about it. D.Sooner than I want to admit, but I still have enough time to procrastinate. E.Next five years. F.Next two to three years. quiz

101. | 101 | | | When Will It Reach Critical Mass?  “The phonograph is of no commercial use” - (Thomas Edison, 1880)  “Everything that has been invented has been invented” - ( Charles Duel, Director US Patent Office, 1899)  Who the hell wants to hear actors talking?” - (Harvey Warner, 1927)  “I think there is a world market for about five computers” - ( Thomas J Watson, Chairman, IBM, 1943)  There is no reason for any individual to have a computer in their home” - (Ken Oloson, President of Digital Equipment Corp., 1977)  “640k ought to be enough for anyone” - (Bill Gates, 1981)

102. | 102 | | | When Applications Talk to Each Other…

103. | 103 | | | Final Thought…….. Change is not what it used to be….. Change has become a process; it’s become a permanent part of the external environment

104. | 104 | | | Summary  FASTER  BETTER  CHEAPER  Our profession will have to follow technology and record business activity in an real-time mode.

105. | 105 | | | Concluding Remarks…..

106. | 106 | | | www.edgar-online.com/xbrl/XMLXBRL_Long_Version.ppt EDGAR ® ® NLINE O O SM To download slides……….

107. | 107 | | | Questions ? Liv A. Watson Edgar-Online Inc E-Mail: Lwatson@Edgar-Online.com Phone: (812) 499-8149 EDGAR ® ® NLINE O O SM

108. | 108 | | | What is the Bryant College XBRL Educational Resource Center?  An international resource for the business and academic community alike  A Website with reference material and news  Sponsors of the Annual XBRL Academic Competition  Sponsors of Business Reporting and Data Assurance Conference  Provides consulting support to area businesses

109. | 109 | | | Agenda  Introduction: Mike Willis PricewaterhouseCoopers

110. | 110 | | | Business Supports XBRL  Microsoft posts 1 st and 2 nd quarter financials in XBRL  Reuters