1. 10th WCAS Symposium XBRL - CONTINUOUS AUDITING, RESEARCH IN PROGRESS
I-Matrix: Its Relevance to Continuous Reporting
November 16, 2018
Rutgers Business School
Liv A. Watson – Vice President of Global Strategy
EDGAR Online Inc
IMA Board Member
Chair of XBRL International Jurisdiction Development Sub-Committee
Phone: (203)
Web:
XBRL, CONTINUOUS AUDITING, RESEARCH IN PROGRESS
Chair: Marilyn Prosch, Arizona State University
• Enterprise Business Reporting in the Post Sarbanes-Oxley Era: A Data-Centric
Approach, Neal Hannon, XBRL Editor, Strategic Finance Magazine, and Professor,
University of Hartford
• I-Matrix: Its Relevance to Continuous Reporting, Liv Watson, EDGAR Online

2. © 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018
Agenda
About EDGAR Online
Issues facing the Corporate Community
Solving those issues with I·Metrix
Lesson Learnt
I would like to start by telling you a little about EDGAR Online
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

3. © 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018
About EDGAR Online
EDGAR Online, the trusted source for business information, harnesses technology to provide financial data on companies along with analytical tools.
Serving professionals in the corporate, financial and advisory sectors.
Most advanced technology-enabled processes available for extracting data from public and private sources.
Immediate transformation of data into actionable information.
EDGAR Online’s solutions were created for professionals in the new regulatory environment who are demanding greater transparency of financial data.
EDGAR Online has been around for over 10 years
The business was built on the delivery of SEC documents
Today we are going to discuss our migration to a data and analytics company
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

4. Products & Services
EDGAR Online Solutions
EDGAR Online Pro
EDGAR Online Access
EDGAR Explorer Data Feeds
Custom Solutions
Developers Toolkit
Consulting Services
I·Metrix Solutions
Between our two Web based solutions (EDGAR Online Pro & Access) we have over active subscribers
With our custom solutions we provide data and tools for companies such as Yahoo, NYSE, NASDAQ, and Citigroup
Today we want to introduce you to …. I·Metrix … a sea change (“revolution”) in fundamental data and analysis
The next part of this presentation focuses on issues in the corporate market and how I·Metrix will benefit you
I·Metrix Professional
I·Metrix Vision
I·Metrix Architect
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

5. © 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018
Agenda
About EDGAR Online
Issues facing the Corporate Community
Solving those issues with I·Metrix
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

6. Corporate Pressures
Corporations are under increased pressure to meet market expectations, comply with regulators, and deliver shareholder value
Regulatory (SOX)
Data Collection
Competitive Intelligence
Financial Transparency
Data Overload
Corporate Governance
Timeliness of Reporting
As you know today's corporate professional is dealing with a range of issues
Our analysis has shown that these are often top of mind
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

7. © 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018
Agenda
About EDGAR Online
Issues facing the Corporate Community
Solving those issues with I·Metrix
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

8. © 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018
Meeting the Challenge
The I·Metrix suite of tools empowers Corporate Executives to meet the challenges of today's complex business environment
Corporate Challenge
I·Metrix Solution
Data Collection
Delivers as reported data in a standardized format (XBRL) within hours of filing with the SEC directly into your Excel Models and third party analytical applications.
Data Depth & Breadth
Delivers full financial statements, ratios, insider, institutional ownership, IPO/SPO, market data, company profiles, and SEC filings.
Competitive Intelligence
Delivers data and visual representation through benchmarking tools, templates and dashboards to easily track your competitors and peers.
Alerting to market events and competitive actions.
Corporate Governance
Delivers integrated internal and external data into easy to read and understand dashboards and reports.
Regulatory
Delivers data and tools to help you investigate regulatory compliance and detect anomalies within your organization and industry.
I·Metrix supports you in dealing with complex challenges
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

9. I·Metrix Suite of Products
I·Metrix delivers transparency via multiple solutions
I·Metrix Professional
I·Metrix Vision
I·Metrix Architect
Web Site
Web Site
Custom Tools
I·Metrix is packaged in the following three ways:
Professional – an end user solution delivered via the Web, Excel and/or Business Objects
Vision – an end user solution adding dashboard style visualization to I·Metrix Professional
Architect – a programmatic source of I·Metrix data powering in house or third party solutions
Microsoft Excel
Microsoft Excel
3rd Party Tools
Business Objects
Vision Dashboard
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

10. I·Metrix Professional
I·Metrix professional provides users with:
Best in Class company financial data – fundamentals, market data/charts, ownership, institutional, news, corporate actions, IPO, conference calls, people, SEC filings …
Data delivery directly into Excel and the Browser
A wizard to enable instant access
Pre-packaged and customizable models to facilitate analysis
Company Profiles, Peer Analysis, Valuation …
One click data verification
An easy to use interface
Real time alerting of filings
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

11. © 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018
I·Metrix Vision
I·Metrix Vision builds on the benefits of I·Metrix Professional by delivering data into a user friendly graphical dashboard
The dashboard can visualize disparate data sources including I·Metrix, internal reports, databases, and web based content
Real time alerting of changes in key metrics
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

12. Architectural Overview
The I·Metrix architecture converts SEC data to XBRL (eXtensible Business Reporting Language) and delivers it through a variety of tools and feeds
The automated nature of our solution allows us to deliver:
Data available within an hour of filing
No bottlenecks (peak season does not effect us)
Standardized to GAAP accounting rules not Normalized to a proprietary rules (unlike S&P, Reuters, Thomson …)
Best in class quality (over 40 quality assurance checks)
Delivery of data in multiple ways
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

13. The taxonomies that were used are:
US GAAP - Commercial and Industrial (US-GAAP-CI) Taxonomy
Approved
US GAAP - Banking and Savings Institutions (US-GAAP-BASI) Taxonomy
US GAAP - Insurance Entities (US-GAAP-INS) Taxonomy
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

14. Lesson Learnt: Incomplete Industry Coverage of Taxonomies
Key industries are not covered (i.e. Oil & Gas, Utilities, Real Estate)
Taxonomy development has been slow or delayed.
Will adoption by the SEC happen unless complete and detailed coverage is established?
February 3, 2005: The SEC adopted rule amendments formally establishing the XBRL Voluntary Program
Objectives:
The filing community to test the submission of XBRL documents,
The SEC to examine the processing and storage of XBRL documents,
The dissemination community to receive XBRL documents and to consider or pilot value added services,
The investing community to download XBRL documents and explore their use
The SEC staff to investigate and pilot various mechanisms to view and analyze the XBRL tagged information.
Key industries are not covered (i.e Oil & Gas, Utilities, Real Estate) and no plans currently exist to produce them in a timely manner.
Broker Dealer taxonomy development has been delayed significantly.
Adoption by the SEC will not happen unless complete and detailed coverage is established.
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

15. Lesson Learnt: Insufficient Depth of Detail in the Taxonomies
The depth of concepts within the existing taxonomies is insufficient for the production of primary financial statements for most public companies without the creation of industry and company-specific extension taxonomies.
A large number of extension taxonomies significantly dilute the benefit of XBRL as a reporting standard.
Creation of extension taxonomies is hard to do for the average instance creator.
EDGAR Online has created over 1000 extension concepts for the C&I, BASI and Insurance taxonomies for just the 3 primary financial statements, excluding any information from the notes sections.
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

16. Lesson Learnt: Inadequate Taxonomy Release and Management Process
Version, release and change management procedures do not currently exist and need to be in place if participants are to rely on them.
The taxonomies need to be categorized, catalogued, cross-referenced and documented for the user with extensive samples and guides.
A formal feedback and errata process needs to be established to improve the quality of the taxonomies.
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

17. Lesson Learnt: Existing Taxonomies are Immature
Inconsistencies in the taxonomy/concept construction. Key concepts are missing. For example, Cash Flow should have a Net Change, Proceeds and Repayments for each concept.
Inconsistencies between similar concepts in the C&I and BASI taxonomies.
Inconsistencies between labels, tags and descriptions.
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

18. © 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018
Lesson Learnt: Multiple Industry Extension Taxonomies are not suitable for Hybrid Companies
Many significant companies do not fit into one industry and often report in 2 or more industry styles.
Automotive companies are often C&I and BASI.
Banks are often Broker Dealers and Insurance entities.
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

19. © 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018
Lesson Learnt:
Taxonomy Calculation Relationships do not reflect the As-Reported relationships
Frequently the As-Reported company calculation relationships do not match the XBRL taxonomy calculation relationships, requiring complex re-wiring of the calculations on a per-company basis.
Financial Statements are hard to render with the original signage on monetary items
Balance Type generally missing from Cash Flow specific terms
Intellectual Property
Taxonomy Calculation Relationships do not reflect the As-Reported relationships
• Frequently the As-Reported company calculation relationships do not match the XBRL taxonomy calculation relationships, requiring complex re-wiring of the calculations on a per-company basis.
Financial Statements are hard to render with the original signage on monetary items
Balance Type generally missing from Cash Flow specific terms
Intellectual Property of the US Taxonomies currently resides with the AICPA
• Consortium members are unwilling to contribute IP to XBRL US while the current IP resides with a single member.
• This is a disincentive for new members to join and for the overall development of the taxonomies.
© 2005 EDGAR Online, Proprietary and Confidential - November 16, 2018

20. Questions Liv A. Watson – Vice President of Global Strategy
EDGAR Online Inc
IMA Board Member
Chair of XBRL International Jurisdiction Development Sub-Committee
Phone: (203)
Web: