1. 8th XBRL International Conference Public Day
XBRL throughout the Business Information Supply Chain: Internal Accountants & External Auditors
November 4, 2003
Paul Penler, Ernst & Young Global XBRL Leader
XBRL US Steering Committee - Vice Chair

2. Web-Enabled Business Reporting Agenda
XBRL for Business Reports: What & Why
XBRL for Externally Distributed Reports
- Financial Statements and Earnings Releases
Internal Accountants
CPA Certification
Expected Benefits
Getting Started
What Should Companies do Now
Welcome and Thank You
Introductions
Administrative matters
End time
CPE Sheet
LEA Education Charge Code

3. XBRL: What & Why

4. Economic Policymaking
The business information supply chain
Business
Operations
Internal
Financial
Reporting
External
Financial
Reporting
Investment,
Lending,
Regulation
Economic Policymaking
Processes
ROLE OF INTERNAL ACCOUNTANTS AND EXTERNAL AUDITORS
You are here
Companies
Financial
Publishers
and Data
Aggregators
Investors
Central
Banks
Participants
Trading
Partners
Management
Accountants
Auditors
Regulators
Software Vendors

5. Internal and External Exchange of Business Reporting Data
Internal & External Auditors
Caseware
Divisions
Accounting | HQ
Sharing
Information
Bank’s Assessment
of Borrowers
Data Publishers
More
External Users
Data Intermediaries
Easily
FDIC
Investors
Other Regulators
Lenders

6. Why Change Business Reporting?
Data Preparer Pressures:
More Data (Data Users are demanding more)
Data is more Complex (Global)
Required to Report more Often
Required to Report more Quickly
Decrease Costs
Data User Pressures:
Greater Transparency & Detail
Easier to Process and Act On

7. The Next Generation of Reporting
Paper > Electronic Reports
Examples
PDFs of F/Ss
SAP Reports
Improvements
Broader distribution
Improved time to market
Remaining Deficiencies
Digestible by experts
Difficult to identify key information
Electronic Reports > Digital Data
Examples
XBRL for External F/Ss
XBRL for Internal Reporting
XBRL for External Earnings Releases/Reports
Improvements
Decreases Cycle Time
Reduced Costs to Produce
Easier to sift through information overload to isolate nuggets of key information
Remaining Problems
Integration of information across jurisdictions

9. Benefiting External Stakeholders, Benefits You!
MISUNDERSTOOD
Due to outdated, time-lagged business reports, analysts, investors, regulators and lenders don’t use all the information provided and therefore miss the key information BizCorp wants them to see and use. Investors and stakeholders lose confidence in BizCorp and choose to invest elsewhere.
BURDENSOME
Stakeholders of BizCorp can’t find specific business data about BizCorp. They can’t easily identify BizCorp financial and operational trends. This also makes it dif cult for stakeholders to compare BizCorp to the competition. Time and money is lost as stakeholders rekey or externally obtain data for their own use.
UNDERSTOOD
Due to effective, timely business reports using XBRL, stakeholders hold BizCorp in high regard. Regulators and lenders are less likely to misunderstand BizCorp. Analysts deliver more favorable analysis to the public and investors make wiser investment decisions. A positive impression is achieved.
EASY TO USE
Because of the simple to use format, stakeholders of BizCorp can easily locate and analyze specific data. BizCorp facilitates the identification and evaluation of trend information, making it effortless to compare business data to competitors. Information is accessed more quickly and directly and the risk of stakeholder confusion is reduced.
Narrative:
External stakeholders are demanding high quality, transparent, easy-to-understand business reports. At the same time, economic, market and regulatory pressures are forcing companies to create larger, more complex reports in less time. See how BizCorp is feeling the pain:
(Pause, show after graphic – list actual companies)
With XBRL (Extensible Business Reporting Language), reports that used to take days are prepared, transferred and distributed in a fraction of the time and cost in formats that are easily used and understood. See how XBRL benefits stakeholders, which in turn benefits BizCorp:

10. Developing Reports in XBRL

11. Methods for Getting Data into XBRL
XBRL Instance Document Creation Tools
Primary Mechanism Today
Embeded in Financial Applications
Primary Mechanism in the near near future
Database and APIs
Primary Mechanism Today for Data Aggregators

12. Methods for Getting Data into XBRL
Embeded in Financial Applications
Primary Mechanism in the near near future

13. XBRL Instance Document Example
Financial Statement
XBRL Taxonomy 1
Mapping
XBRL Creation 2
Instance Document
Consumed
Viewed 3 13

14. XBRL Viewing Example
XXX

15. XBRL Consumption Example
Created using

16. Certifying XBRL Reports of Financial Information

17. Why is Assurance Important?
To the Market:
Users want to obtain confidence that the electronic version of the financial information is the same as the human readable version. Users don’t want to have to test/evaluate the XBRL data – they just want to use it.
To Assurance Providers:
The ability to extend assurance on the financial statements to this new electronic medium is a reasonable evolution of the auditing profession.
1717

18. Attestation Standards - AT 101 Interpretation
Issued September 2003
CPAs can provide assurance today on company’s XBRL Financial Information
Criteria:
Information in XBRL is same as Printed Financial Information
Proper Tags/Taxonomies are used
Complies with XBRL Technical Specification
Who performs audit?
Audited and Un-audited Information 18

19. Getting Started - Internal Accountants

20. XBRL: Begin the Adoption Process Today!
• XBRL will transform the way companies do business
• Timing of the adoption process is critical
XBRL will transform the way companies do business with their entire value chain and all their stakeholders, although the full market adoption of XBRL may take several years. As with all transformational technologies, timing of the adoption process is critical to your business — too early results in unnecessary cost while too late results in missed opportunity.

21. 1. EDUCATE • Learn all you can about XBRL
• Share your knowledge within your company
For companies that fall into one or more of these categories, now is the right time to start! Learn all you can about XBRL and share your knowledge within your company.

22. 2. EVALUATE • Analyze the business opportunity for your company
• Develop your plan of action
Analyze the business opportunity for your company and develop your plan of action.

23. 3a. ACT: Get Your Feet Wet
• Put your quarterly earnings release and financial statements in XBRL
• Distribute these reports to your stakeholders
Depending on the results of your evaluation, you may want to take action today. While some of you may want to get heavily involved with the adoption process, others may want to take smaller steps. Here are some of the adoption options that you should consider over the next 18 months:
A. GET YOUR FEET WET: Put your quarterly earnings release and financial statements in XBRL and distribute these reports to your stakeholders. Your auditor can certify them as well.

24. 3b. ACT: Jump in Waist Deep
• After step A, evaluate and pilot your reporting processes in XBRL
• Get engaged in XBRL communities
B. JUMP IN WAIST DEEP: After fulfilling step A, evaluate and pilot your reporting processes in XBRL. You may upgrade your financial reporting processes using XBRL to integrate and consolidate data flows. Also, get engaged in XBRL communities through stakeholder advocacy groups, industry initiatives or XBRL consortiums.

25. 3c. ACT: Dive In Head First
• After steps A & B, participate in demonstrations’ projects
• Share lessons learned and best practices with other companies
C. DIVE IN HEAD FIRST: After fulfilling steps A and B, consider working with people in your value chain by participating in market demonstrations’ projects. Then, share lessons learned and best practices with other companies in your XBRL community. As an early adopter, your benefits increase as XBRL becomes a standard.

26. Questions?
Paul Penler, Principal, Ernst & Young XBRL US Steering Committee - Vice Chair, AICPA XBRL Implementation Task Force – Chair

27. The Value of XBRL and Web Enabled Business Reporting
• Immediate access to a lot of data
• Timely reports for analysis
• Higher quality data
• Receive data quickly
• Make decisions faster
• Lowers operating costs
Narrative:
XBRL is BETTER
Because XBRL is an emerging standard across all software, internal and external users have immediate access to vast amounts of data that results in useful, timely reports for analysis.
Manual rekeying of data and the opportunity for human error is eliminated and the quality of the data contained in reports is higher.
XBRL is FASTER
With XBRL, decision makers receive needed information more quickly. This enables decision makers to analyze data and make decisions faster.
XBRL is CHEAPER
Operating costs are lowered due to the ability to easily reuse information and standardize data inputs. XBRL frees up report preparers to work on other business initiatives.