of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪ XBRL eXtensible Business Reporting Language

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of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪ Finance & Information Technology News: Knowledge for Financial Executives A quarterly electronic newsletter covering IT issues that affect financial executives. FELIX (Financial Executives List Exchange) is a moderated, based discussion forum that allows FEI members to communicate with and learn from their peers.

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Electronically tagging data in financial and other reports, which facilitates retrieval and analysis of the data.  Business information format standard  “UPC” for Financial Statements  Open Standard, No licensing fees What is eXtensible Business Reporting Language (XBRL)?

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Element or Item  Specification  Taxonomy=Financial dictionary How Does XBRL Work? Validation Standardization Calculation Cash = Currency + Deposits Formulas Cash ≥ 0 Contexts US $ FY2004 Budgeted Label cashCashEquivalentsAn dShortTermInvestments References GAAP I.2.(a) Instructions Ad Hoc disclosures Presentation Cash & Cash Equivalents XBR L Item Tagging Process creates an Instance Document that is readable by software

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  XBRL International  Development in 1998  Now 550 companies  XBRL US  Local jurisdiction of XBRL International  Mission: Support implementation of XBRL in the United States through development of taxonomies for use by US public and private sectors  Fast tracked by SEC  Project to review XBRL benefits launched in 2004  FEI/FERF monitoring since approx Brief History

▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪ FEI provides you with FEI has a reputation for being a widely-influential voice on behalf of financial executives before the U. S. SEC, FASB, PCAOB, IASB and the U. S. Congress. FEI Advocacy and Accounting Policy Initiatives  Committee on Corporate Reporting  Commented over the years on time, liability, auditor involvement, footnote tagging, taxonomy.  Recommended to start filing with SEC Form 10-Q, to use Form 8-K, delayed submission  All considered through comment process  Represented on SEC Committee on improvements to financial reporting (CIFiR) on its interactive data subcommittee  About ½ have to adopt this year

▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪ FEI provides you with FEI has a reputation for being a widely-influential voice on behalf of financial executives before the U. S. SEC, FASB, PCAOB, IASB and the U. S. Congress. FEI Advocacy and Accounting Policy Initiatives  Committee on Finance and Information Technology  XBRL is an initiative of Technology & Reporting Subcommittee  Commented on U.S. taxonomy  Meetings with the XBRL Advisory Committee to the International Accounting Standards Board and with XBRL US  All considered through comment process  CFIT member Taylor Hawes is XBRL US board member  CFIT technical advisor Mike Willis is XBRL International chair  Collaborates with FERF on objective studies on XBRL

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Provide the SEC a new exhibit with their financial statements, including the footnotes and schedules to the financial statements, in interactive data format (XBRL)  Will not replace traditional filing formats in ASCII or HTML  Local jurisdiction of XBRL International  Mission: Support implementation of XBRL in the United States through development of taxonomies for use by US public and private sectors  Required on SEC forms and on corporate websites  SEC forms: Annual 10-K, Quarterly 10-Q, foreign forms 20-F and 40-F, registration statements  3-year phase-in period based on size and status The SEC Rules

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Domestic and foreign large accelerated filers on US GAAP  Public float above $5 billion  Beginning with quarterly report containing financial statements for a fiscal period on or ending after June 15, 2009  All other domestic and foreign large accelerated filers on US GAAP  Beginning with periodic report containing financial statements for a fiscal period on or ending after June 15, 2010  Remaining filers on US GAAP and foreign private issuers on IFRS  Beginning with periodic report containing financial statements for a fiscal period on or ending after June 15, 2011 The SEC Rules

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Footnotes  Tag as a block of text in year one of use  Tag detailed qualitative disclosures in subsequent years (but each narrative not required)  File exhibit at the same time as report except:  For initial interactive data exhibits (can file within 30 days)  For detailed footnote and schedules in year two  If you don’t file…  Will be deemed NOT current with Exchange Act reports  Will NOT be deemed to have adequate current info for safe harbor  But, once data is provided, will be deemed current again-will NOT lose timely filing status The SEC Rules

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Voluntary XBRL filing program ends for 50 companies  Liability  Interactive data (XBRL) file subject to federal securities laws if submitted within 24 months of when it was required  Furnished, not filed for specified liability provisions  Protected from liability for initial failure to comply as long as good faith effort and prompt corrections made The SEC Rules

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Voluntary filer program: initial XBRL-formatted 10-Q for 2nd quarter of 2007  Financial reporting team plan involving software, identification of filings and extensions  100 hours of training and preparation  Since then…  Took 2 hours until filing of 10-Q for 2nd quarter of 2008 that was filed on the same day  Implementation Cost=$10,000 for creation and submission of four quarterly and one annual set of XBRL financials over a year XBRL Filing Case Study: AGL Resources

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Tagging of First Form 8-K earnings release  80 hours of software training, establish process, perform tagging and filing  Since then…  Process now less than 4 hours  Overall time and cost reduced by over 20% XBRL Filing Case Study: United Technologies

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪ Beyond the Rules – the XBRL potential

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Existing process  Constant need to integrate number of different systems  Common solution is enterprise resource planning (ERP) software application  Furnished, not filed for specified liability provisions  Protected from liability for initial failure to comply as long as good faith effort and prompt corrections made  XBRL enables  Disparate systems (G/L, transaction and sub-ledgers) to speak the same language Systems Integration

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Case Study: Wacoal ($1.4 billion Japanese apparel manufacturer)  Worked with vendor Hitachi to connect 32 disparate systems  Wacoal translated many document types, on a variety of platforms: mainframes, minicomputers, UNIX systems and PC servers  Done in under 6 months  Avoided approximately $100 million for a single instance ERP Systems Integration Business Systems Purchasing Sales Wages XBRL GL Auto Journalizing Add-ons Journalizing XBRL GL Conversion Engine GL AP AR XBRL GL Document s XBRL GL FinancialInformation Oracle E-Business Suite

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Existing process  Still largely manual  Wide range of proprietary software  Multiple reviewers and edits of reports and excel spreadsheets Data Access, Assembly and Review  By using data extraction tools, XBRL enables  More effective use of existing report writer apps for financial statement tables, footnotes, MD&A  Decreases extraction time and number of documents

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Existing process  Data validation tests prior to moving to data warehouse  Errors passed back to data provider  XBRL enables data validation at the source level  No data passing back and forth  Example: FDIC applied in 2005 for call reports that shared information needs with 8,000 banks  Data error rate dropped from over 68% to under 5%  Reduction in processing time from 45 to less than two days  Reduction of analytical personnel from over 1,000 to fewer than 200 Data Quality

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Existing process  Manual  Control risk from multiple reviewers and editors Spreadsheets  XBRL enables  Self-service customized spreadsheet generation  Automated population of prior period information  Functioning like virtual dashboards

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪ Case Study: Microsoft  Filed 10-Q in XBRL format: financial statements, footnotes even before voluntary filing program  Furnished full 10-K for fiscal 2005  Working on integrating into internal management reporting system in a few years  Investor Central  Released in Jan  Portal of information for all investors  Drill down into detailed finances

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Some but more awareness needed  But, comparable to awareness building of EDGAR  SEC will replace EDGAR with Interactive Data Electronic Applications (IDEA) that is XBRL based Are Analysts Using?

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  ERP Vendor: SAP  Launched XBRL publisher product after SEC rule finalized  Partnered with XBRL software provider UBMatrix  Users of SAP products (Business Objects Planning and Consolidation, Business Suite software packages) can tag data  ERP Vendor: Oracle  XBRL manager feature of Oracle Hyperion financial reporting  XBRL publisher product consolidates, analyzes, approves XBRL report  Built-in Vendor: Clarity Systems  XBRL reporting services built into financial reporting system  Tagging is automated  Bolt-On Tagging Vendors  Fujitsu, Hitachi, NewClaurs, Rivet Software: Bolt-On Vs. Built-In Approach

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Get educated  SEC final rule and SEC website  XBRL International, PCAOB websites  Consider free XBRL US webcasts or filer training workshops in New York City, Wed., May 20 and San Francisco, Sept. 16, 2009  FEI website and Current Financial Reporting Issues conference in New York City, Mon.-Tues., Nov  Learn from others through their actual filings on SEC website  Read XBRL US preparers guide  Get management engaged Next Steps

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Develop a plan  Identify a task force  Q2 filing considerations: users need a tag reader, new taxonomies expected, some software better than others  Identify options  Information about 64 vendor products on XBRL US website including product/service features, pricing, contact and customer support information  Consider talking to auditors, financial printer or wire service for recommendations Next Steps

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  Estimate costs/resources  Instance documents are labor intensive the first time  Informal survey of 45 companies, companies have hired vendors; costs for one company is $3K per quarter. Create a practice run XBRL-enabled instance document  Free or trial tools available  Review taxonomies  Think through the process from start to finish  Start early! Next Steps

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪  XBRL US  Taxonomy for MD&A out for comment  Integrating with standard setters (ISO 9000, Society for Worldwide Interbank Financial Telecommunication) to develop common structure  Potential IFRS transition – IFRS and US taxonomies different  FEI/FERF continues to monitor Future Considerations

of Advancement Through Knowledge ▪ Interaction ▪ Information ▪ Influence ▪ Integrity ▪ Questions? Cheryl Graziano (973)