12 What Is XML? XML is a platform-independent, self-describing, expandable, standard data exchange format
13 XML is Platform Independent Windows Unix Macintosh Mainframe Linux
14 XML is Self-Describing Example: – July 26, 1998 Describes the information, not the presentation Format neutral
15 XML is Expandable Whereas HTML has a fixed set of tags –,, XML lets you create your own tags –
16 Whos 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.
17 XML Makes Doing E-Business: Better Faster Cheaper
18 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
19 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
20 Problems XBRL Addresses Ineffective communication to investors Inefficient aggregation and analysis Inefficient creation of financial statements
21 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 Todays external reporting processes –Rework and delay –Ad hoc and non repeatable –No path forward
22 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
XBRL: Interoperability & Multiple Outputs Other Sources of Information Regulatory Filings Intranet / Internet / Extranet Tax Returns Bank Filings Printed Financials XBRL Creditors Other Parties Investors Other Sources of Information Accounting System(s) XBRL Accounting System(s) Accounting System(s) Other Sources of Information XBRL
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
28 XML Document XML Document Core Schema Core Schema Company Specific Vocabulary Industry Specific Vocabularies Transformatio n Tools The XML Puzzle
29 Internal to company – Proprietary format XBRL/XML used to transfer data across the Internet – common vocabulary - Internal to company – Proprietary format Company A Data Stores Company B Data Stores XML Translator Interne t XML Translator Applications such as AccountingSystems Applications AccountingSystems
30 Steps in Technology Acceptance Visionaries Taxonomy Simplification/Tools Acceptance
31 How Do You Get There? Needs Assessment Design Solution/Business Plan Training & Education Implementation
32 XBRL Makes Business Reporting Easier Better Faster Cheaper
34 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)
35 Ask Yourself… What will your digital industry look like? What will be your business model? How will your business process support this business model? What people skills will you need to manage those new business processes? How should you organize to use those people skills to best effect? What will your infrastructure need to look like to support those digital processes?
36 Products Imbued with Services Delivered Over the Internet
37 Final Thought…….. Change is not what it used to be….. Change has become a process; its become a permanent part of the external environment
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