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What Every Accountant Can Learn from XBRL
Neal J. Hannon, CMA (inactive)University of Kansas
Department of Accounting & Information SystemsFlorida Institute of CPA’s
December 2011
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Speaker
Neal Hannon, CMA (inactive)
Lecturer, Accounting & Information Systems at
University of Kansas Member of XBRL-US since 2000 Many XBRL articles, speeches, panels, and presentations Consultant to Fujitsu, IBM, Webfilings, Altova, Rivet, EDGAR Online, XBRL Cloud, Financial Accounting Foundation, FASB and others
The Franciscan Roots of Modern Accounting
First surviving accounting textbook: “The Summa” written by Fra. Luca Pacioli in 1494 (included illustrations by L. Da Vinci)
A best seller in its dayPublicized the Method of VeniceHelped to spread literacy in the middle class
Luca Pacioli—the “Father of Accounting”
A mathematician and merchantBecame a Franciscan friarFranciscans came out of, and ministered to, merchant classDid not invent double-entry accounting but spread the knowledge
The Method of Venice(Double-entry Accounting) A binary (0,1) method for recording economic eventsInvention of the “Debit” and “Credit” concepts from the Italian terminologyAllowed for much easier addition and subtraction before calculators were invented
DebitComes from the Italian “debito”which comes from the Latin “debita” and “debeo”which means: OWED TO the proprietor or an asset of the proprietor CreditComes from the Italian “credito”which comes from the Latin “credo”which means:
Trust or belief (in the proprietor) or OWED BY the proprietor
From the 13th century to the present:Double-entry accounting spread throughout the worldAccountants in each country adapted accounting practices
to suit their:CulturesLaws & regulationsCapital market structuresEnvironments
National differences in accounting rules and practices render financial statements of companies based in different countries UNCOMPARABLE
Securities Act of 1933
Often referred to as the "truth in securities" law, the Securities Act of 1933 has two basic objectives: require that investors receive financial and other
significant information concerning securities being offered for public sale; and
prohibit deceit, misrepresentations, and other fraud in the sale of securities.
Securities Exchange Act of 1934
With this Act, Congress created the Securities and Exchange Commission. The Act empowers the SEC with broad authority over all aspects of the securities industry. This includes the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as the nation's securities self regulatory organizations (SROs).
Sarbanes-Oxley Act of 2002 On July 30, 2002, President Bush signed into law the
Sarbanes-Oxley Act of 2002, which he characterized as "the most far reaching reforms of American business practices since the time of Franklin Delano Roosevelt." (the 1930’s)
The Act mandated a number of reforms to enhance corporate responsibility, enhance financial disclosures, combat corporate and accounting fraud
Created the "Public Company Accounting Oversight Board," also known as the PCAOB, to oversee the activities of the auditing profession.
XBRL Committee Encouraged by SEC Chairman Arthur Levitt's Recommendation That It be Expanded and Used by Investors and CompaniesBusiness Wire, Oct 30, 2000 Business EditorsNEW YORK--(BUSINESS WIRE)--Oct. 30, 2000In remarks last week, Arthur Levitt, Chairman of the Securities Exchange Commission (SEC), acknowledged XBRL and recommended its further development to turn financial statements into meaningful information for investors using this new revolutionary technology. Chairman Levitt's remarks were made at the American Institute of Certified Public Accountants' (AICPA) Fall Council Meeting in Las Vegas, Nevada on October 24, 2000.
First SEC Mention of XBRL
Former Chief Accountant Lynn Turner:
“I support XBRL. I wrote the comment for chairman Levitt’s speech. But please tell
everyone you talk to about XBRL that you must
Get the Accounting Right!”
AccountingGoes Digital
Do You Remember Vinyl Records?
Had to Play from start to finish
Record could be damaged if you attemptedto play a specific track.
Similarly , Financial statements, notes and disclosures today are meant to be read and understood as a whole. Audit opinions are given on the entire set of financials. The paper-based, report centric world lives on.
Vinyl Records And Disclosures
The technology dramatically changed how we relate to musicand gave us more power to select individual cuts suited tomusical tastes and preferences
Then Came Digital Music
• Individual Tracks Separated• Choose Your Own Order for Play• Start and Stop
What can digital data do?
George Martin and the Beatles
The task Collect, identify, classify the entire set of music created
by the Beatles Using master tapes, break out the riffs Re-configure music into digital sound bytes
The results New Music.. The Beatles Love Album
George Martin and the Beatles
The task Collect, identify, classify the entire set of music created
by the Beatles Using master tapes, break out the riffs Re-configure music into digital sound bytes
The results New Music.. The Beatles Love Album
The SEC and Interactive Data
The task Collect, identify, classify the entire set of GAAP created
by US Authoritative Sources of GAAP Using financial statement hierarchy, break out the
elements into an XBRL taxonomy Re-configure accounting into digital bytes
The results New Filings.. The SEC Interactive Data initiative in
XBRL
Digital data fundamentally
changes
the paper-based
reporting paradigm
Who is using XBRL ?
• Federal Deposit Insurance Corporation (FDIC) went live with its XBRL system in 2005, and has since reduced errors from 18,000 to zero, with an estimated savings of $26 million over the next ten years.
• The Dutch Government went live in 2007 and expects to save $345 million annually as a result of implementing XBRL.
• The Australian Tax Office is implementing XBRL and expects to save $780 million (Australian) per year.
XBRL
Not just for the SEC
External
Financial
Reporting
BusinessOperations
Internal
Financial
Reporting
Investment,
Lending,Regulati
on
ProcessesEconomic Policyma
king
Participants
AuditorsTradingPartners
Investors
FinancialPublishersand Data
Aggregators
Regulators
Software Vendors
ManagementAccountants
Companies CentralBanks
XBRLXBRLXBRLXBRL XBRLXBRLXBRLXBRL
XBRL for G/LJournal Entry
Reporting
XBRL for Financial Statements
Scope and Role of XBRL
Who is using XBRL ?
Kim Wallin, Controller, State of Nevada
In 2007, Wallin begin considering XBRL as a solution to grant reporting, and when the Department of Agriculture asked for help with their reporting, Deloitte was brought in and two of Agriculture's grants were selected for the XBRL pilot.
"The goals were timely and accurate data,“ said Wallin, "stronger internal controls, reduced costs, a standardized system of seamless data exchange, business processes
and data elements. XBRL met all of those goals."
XBRL Does NOT
Change management’s accounting decisions. Require either more or less disclosure than
companies are currently experiencing Restrict companies to using elements in the
taxonomy (data dictionary) only.
Have you ever wondered which specific US GAAP authoritative literature stands behind each item onyour company’s SEC disclosures?
A US GAAP XBRL Taxonomy has the answer
Ever wonder how accounting experts mightdefine each key item on your SEC 10K?
A US GAAP XBRL Taxonomy has the answer
XBRL BASICS
Accountants: Industry experts have developed a data dictionary, or taxonomy that covers US GAAP reporting requirements to the SEC
The taxonomy will has labels, definitions, and references to authoritative literature organized in a reporting hierarchy in addition to computer codes in XBRL.
US GAAP TaxonomyDevelopment Effort
FAF, XBRL US
GAAP,SEC Regulations
Codification projectAudit check lists
Internal and publictesting
XBRLprotocols
TaxonomyRelease
CFOInvestor Relations
CurrentReporting Practice
Key concept:Create a Data model
AnalystsInvestors
XBRL
The Accounting’s Inside
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Standard Label
Standard label in English:Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure
Standard label in XBRL:RevenueRecognitionAccountingPolicyGrossNetRevenueDisclosure
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Definition
Description of accounting policies associated with the recognition of gross revenues and gross revenue adjustments, which are components of net revenues in the statement of operations for the period.
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Authoritative Reference
Accounting Principles Board Opinions (APB)Number 22, Paragraph 8
Will the Meta Data Count?
So.. If a filing contains a label that is further described by a definition and a reference, the computer referencing the item will have all three pieces of information as discoverable meta data
Label Definition Reference
If the definition is off or the reference is wrong, is the tagged data also wrong? What if an investor, reading the XBRL meta data, relies on the XBRL definition or reference? Shouldn’t the entire financial information supply chain care about the triad of accounting?
Will the Meta Data Count?
XML is a wonderful language for describing objects in computer readable formats. XML depends on meta data to describe the contents of its digital message.
XBRL must contain several attributes in order to transform numbers into meaningful business reporting interactive data.
When we move from a paper based reporting world to an interactive data world, the data contained in a finding will not be complete or understandable without accurate meta data accompanying the element reported.
Principles
GAAP accommodates variation in applied accounting methods as long as the methods generally conform to GAAP’s set of principles…..
This drives computers crazy!
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Basic XML Concepts & Terminology
Anatomy of XML element
<CostOfGoodsSold>101000000</CostOfGoodsSold >
Starting tag = <CostOfGoodsSold> Ending tag = </CostOfGoodsSold> Element name or element-type = CostOfGoodsSold
[no spaces and case sensitive] Element content = 101000000
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Basic XML Concepts & Terminology
Need for attributes What are the problems with the following
elements? <price>34.50</price> <receipt_date>05/04/2008</receipt_date>
Adding attributes<price currency=“USD”>34.50</price><receipt_date date=“ISO 8601”>2008-05-04</receipt_date>
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A Remaining Problem (Implied vs. explicit)
Company Property, Plant and Equipment
Sales Cost of Goods Sold
Staples Total property and equipment
Sales Cost of goods sold and occupancy costs
ExxonMobil Property, plant, and equipment, at cost, less accumulated depreciation and depletion
Total revenue and other income
Crude oil and product purchases
Intel Property, plant and equipment, net
Net revenue Cost of sales
Amazon.com Fixed assets, net Net sales Cost of sales
IBM Plant, rental machines and other property
Total revenue Total cost
Wal-Mart Property and equipment, net Net sales Cost of sales
Source: company annual reports
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Where XBRLComes In
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Some XBRL Terms
2008 2007
Sales $ 145 $ 132
Cost of Goods Sold 101 92
Gross Profit 44 40
Sales, general, and administrative
10 8
Net Income $ 34 $ 32
GrayCoIncome Statement
Year ended Dec 31, 2008(millions)
Label
Context
Attribute
Value
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What XBRL is based on ..
XML Specifications
XBRL Specification
Taxonomy
Instance Document
BuildsModules
Bind toDomain
Builds
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THE XBRL Specification 2.1
The XBRL Specification provides the fundamental technical definition of how XBRL works.
The spec defines XML elements and attributes that can be used to express information used in the creation, exchange, and comparison tasks of business reporting.
XBRL consists of a core language of XML elements and attributes used in XBRL instances as well as a language used to define new elements and taxonomies of elements referred to in XBRL instances, and to express constraints among the contents of elements in those XBRL instances.
Only one specification for the whole world
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Taxonomies
• A Taxonomy is a dictionary of financial reporting terms or concepts
• The concepts captured in a taxonomy are referred to as ELEMENTS. These Elements form the core of XBRL.
• Separate Taxonomies are developed for different reporting purposes such as US GAAP, IFRS, bank regulatory reporting. etc
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Anatomy of an XBRL Element
XBRLElementXBRL
ElementFinancial
Reporting ConceptFinancial
Reporting Concept
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Anatomy of an XBRL Element
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Anatomy of an XBRL Element
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COUNTRY / JURISDICTION TAXONOMY LEVEL STATUS
Canada GAAP Primary Financial Statements Ack Draft
Notes to Financial Statements Ack Draft
China China Listed Company Taxonomy Framework Ack Draft
China Fund Company Taxonomy Framework Ack Draft
China Financial Listed Company Information Disclosure Taxonomy Ack Draft
IASB IFRS General Purpose, 2005 rules Ack Final
IFRS General Purpose, 2004 rules Ack Final
IFRS General Purpose, 2003 rules Ack Draft
International Global Common Data Taxonomies Ack Draft
Ireland GAAP Commercial and Industrial Ack Draft
Israel Israeli Annual and Periodic Reports General Purpose Financial Reporting, extension for International Financial Reporting Standards (IL-IFRS-GP)
Ack Draft
Japan EDINET Taxonomy Ack Final
Korea GAAP Primary Financial Statements Ack Draft
New Zealand GAAP Commercial and Industrial Ack Draft
Spain General Data Idenfication Ack Final
Thailand Listed Companies - Banking Services Ack Draft
Listed Companies - Commercial and Industrial Ack Draft
Listed Companies - Securities Companies Ack Draft
United Kingdom GAAP Commercial and Industrial Ack Draft
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COUNTRY / JURISDICTION TAXONOMY LEVEL STATUS
United States GAAP - Investment Management App Final
XBRL US Accountants' Report Taxonomy 1.0 Ack Final
XBRL US Country Taxonomy 1.0 Ack Final
XBRL US Currency Taxonomy 1.0 Ack Final
XBRL US Document and Entity Information Taxonomy 1.0 Ack Final
XBRL US Exchange Taxonomy 1.0 Ack Final
XBRL US GAAP Taxonomy 1.0 Ack Final
XBRL US Management's Discussion and Analysis Taxonomy 1.0 Ack Final
XBRL US Management Report Taxonomy 1.0 Ack Final
XBRL US North American Industrial Classification System (NAICS) Taxonomy 1.0
Ack Final
XBRL US SEC Certification Taxonomy 1.0 Ack Final
XBRL US Standardized Industrial Classification (SIC) Taxonomy 1.0 Ack Final
XBRL US State-Province Taxonomy 1.0 Ack Final
GAAP - Commercial and Industrial (superseded by the 2008 version) App Final
GAAP - Banking and Savings (superseded by the 2008 version) App Final
GAAP - Insurance (superseded by the 2008 version) App Final
GAAP - Brokers and Dealers (superseded by the 2008 version) Ack Draft
GAAP - Pensions (superseded by the 2008 version) Ack Draft
SEC Certification (superseded by the 2008 version) App Final
Management Report (superseded by the 2008 version) App Final
Accountants Report (superseded by the 2008 version) App Final
MD&A (superseded by the 2008 version) App Final
ICI Mutual Fund Risk/Return Summary Taxonomy Ack Final
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Extension Taxonomies
Why you might need an extension taxonomy1. You want to include a financial statements item not in
the standard taxonomy you are using.
2. Changing a label for a standard base taxonomy to match your label name
3. Changing the presentation structure of one or more standard base taxonomy elements to match the presentation structure of your report.
4. Changing the calculation structure of one or more standard base taxonomy elements to match the calculation structure of your report.
US GAAPPrimaryTerms
US GAAPFS
Terms
Taxonomies and Extensions can be thought of as the building blocks for XBRL reporting
US GAAPBank Terms
First Raleigh BankTerms
Foundation Terms
Industry Terms
Company Specific Terms
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XBRL Linkbases
Definition linkbase: Indicates for each concept whether it is a special case of some other defined concept.
Calculation linkbase: Indicates how one concept in a group of “sibling” concepts is related to the value of their parent concept.
Presentation linkbase: Indicates the order in which each concept should be presented when grouped with its siblings.
Label linkbase: Associates each concept with one or more presentation labels, one per language.
Reference linkbase: Associates each concept with one or more places in authoritative literature where the concept is defined.
Dimension linkbase: Captures detailed information about the horizontal and vertical axes of a table in a note to the financial statements.
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Instance Documents
• An Instance Document is your XBRL financial report
• Instance Documents will include:
• Values (ex. numbers, blocks of text etc)
• Tags to identify the values
• Taxonomy references – Telling you where the tags are defined
• Context – Information describing the reporting entity and period
• Units/Measure – Information on unit of measure, currency etc.
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XBRL TaxonomyCreated by XBRL Consortium
Consumed
Rendered
XB
RL
Cre
ati
on
XBRL DocumentCreated by Preparer
Company Financial Statement
TAGGING
AT 101 Assurance
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Software Used
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Six Steps to XBRL , Journal of Accountancy, Feb. 2008
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XBRL: A World-Wide Phenomenon
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Services architecture leveraging taxonomies
Transaction and or subsidiary
Data
Senior Management
Viewing and aggregation for department & management
XBRLWeb
Services
Controls
Controls
Controls
Controls
Controls
Controls
‘Wrap & Map’ACORDXBRL GL
ACORDXBRL GL
ACORDXBRL GL
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System 3System 1
Identificador de la Cuenta
Descripción Principal de la Cuenta
Monto Monetario
Fecha de Asignación/Ingreso
Account Number
Account Description
Entry Amount
Posting Date
Account#
Description
Amount
PostDate
System 2
accountMainID
accountMainDescription
amount
postingDate
accountMainID
accountMainDescription
amount
postingDate
accountMainID
accountMainDescription
amount
postingDate
XBRL GL XBRL GLXBRL GL
The Answer - XBRL GL
Putting it all together:What are the opportunities for CPAs?
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Providing XBRL services: Still many unknowns/questions/issues!
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Introduction to Opportunities
Advisory Services Assurance Services Agreed-upon Procedures Examination of an Assertion About XBRL-Tagged
Data Examination of Controls Over the Preparation of
the XBRL-Tagged Data AT Section 601, Compliance Attestation Review of an Assertion About XBRL-Tagged Data
Center for Audit Quality [Alert #2009-55]
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Advisory Services
Assisting management in obtaining an understanding of XBRL, relevant requirements, implementation processes, and timetable
Providing observations and recommendations to management on its XBRL project management plan, implementation process or supporting documentation prepared by the client XBRL team members? Outsourcing (filing agent)? Software selection? Timeline?
Providing comments on the client’s mapping of its financial statements to the XBRL US GAAP Taxonomy
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Preparing XBRL Documents for External Reporting
Recommend fire drill to client(s) to work out issues before filing is required: Allocation of work between client, CPA, and 3rd parties Degree of changes to face of financial statements to
match standard taxonomy [could be zero] Decide on block vs. detailed footnotes Develop/implement/test/modify extension taxonomies
Develop plan for official filing based on fire drill results
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Advisory Services: Warning…
Avoid for audit clients… Performing project management of the XBRL
implementation project; Selecting or recommending a specific software product
for the client to use; Mapping the client’s financial statements to the
XBRL US GAAP Taxonomy; Designing a plan for the client to implement, or
designing controls over that process; Preparing a prototype of the client’s financial
statements using XBRL; Providing ongoing support to management in tagging
financial statements.
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Assurance
Independent auditor not required to have any role in XBRL exhibits in SEC filings.
The following standards do NOT apply: AU 550--Other Information in Documents Containing
Audited Financial Statements, AU 722--Interim Financial Information AU 711--Filings under Federal Securities Statutes
However, the client may request the audit firm perform procedures or report on the XBRL instance document…
Assurance Services
Key components of audit/attestation/assurance engagement… Subject matter Client assertions about subject matter Criteria Attestation of client’s assertions about subject matter in
compliance with criteria
Paper financial statements vs. XBRL What are the subject matters, assertions, criteria, and
attestations? Are they the same of different? (Yes, no, maybe!)
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Assurance Issues
Paper financial statements not same as XBRL instance document (different subject matter/criteria)
Current audit opinion focuses on document level (fair view)
XBRL document is a dataset, presentation via a style sheet, so no fair view? XBRL needs assurance on data-level
No taxonomy for the audit opinion or guidance how to connect the opinion to an instance document, could be the FS
No guidance yet about signing audit opinions and validations of the signature
No audit tools (as opposed to validation tools) available for analyzing instance documents
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Preparation & Assurance Questions1
Was the appropriate standard taxonomy chosen based on the industry and applicable GAAP?
Was the extension taxonomy properly created for new concepts and relationships not included in the standard taxonomy. Some related questions include:
Was a tag included in the extension taxonomy that already existed in the applicable standard taxonomy?
Are the customizations of labels, presentation order, and calculations, as captured in applicable linkbases, appropriate?
1List inspired by Eric Cohen CICA presentation, 2004
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Preparation & Assurance Questions
Is everything tagged that should be tagged? Was the most appropriate XBRL tag chosen for
each fact or concept in the source document? Two general types of errors could occur here:
Judgment error Mechanical error
Were there tags in the standard taxonomy that would have been expected to be used, but were not used?
Are contexts consistent and appropriate?
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Audit Approach (AICPA)
“Attest Engagements on Financial Information Included in XBRL Instance Documents” (AT 9101.47–.54)
.52 …practitioner should consider performing include: • Compare the rendered Instance Document to the financial
information. • Trace and agree the Instance Document's tagged information to the
financial information. • Test that the financial information is appropriately tagged and included
in the Instance Document. • Test for consistency of tagging (for example, an entity may use one
taxonomy tag for one year and then switch to a different tag for the same financial information the following year. In this case, the financial information for both years should use the same tag).
• Test that the entity extension or custom taxonomy meets the XBRL International Technical Specification (for example, through the use of a validation tool).
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PCAOB Guidelines (2005!)
PCAOB published 11-page staff Q&A regarding XBRL on May 25, 2005.
A3. An auditor may be engaged to examine and report on whether the XBRL-Related Documents accurately reflect the information in the corresponding part of the official EDGAR filings… under AT section 101, Attest Engagements, as amended.
A4…the auditor must have sufficient knowledge of the applicable SEC Regulations, EDGAR Filer Manual requirements, and XBRL taxonomies and specifications to perform the examination.
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PCAOB Guidelines
Q5. What criteria…? A5. US GAAP Version 2.1…suitable criteria [however]
Company extensions of those taxonomies normally do not go through the same development processes as [standard taxonomies]. Accordingly, the auditor should evaluate whether company extensions represent suitable and available criteria as described in AT section 101.
Agreed-Upon Procedures
Firm’s report identifies proceduresperformed and results.
Report does not express an opinionand makes no representations regarding the sufficiency of the firm’s procedures.
Report is restricted to the client and the named parties who have agreed to the procedures & accepted responsibility for the sufficiency for their purposes.
It is not appropriate for companies to refer to services in a publicly available document
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Examination of an Assertion about XBRL-Tagged Data
SEC Rules note that issuers can obtain third-party assurance under the PCAOB Interim Attestation Standards, AT section 101 AT 9101.47–.54 suggests rending, but this procedure alone
does not sufficiently address the risk that errors could exist in the tagged financial information.
Criteria: SEC Rules and the XBRL US GAAP Taxonomy Preparers Guide What about extension taxonomies? Are they subject matter
or criteria? What about highly-technical XBRL Specification 2.1? What
content? How do you decide? Skills? Specialist? How is materiality assessed? Document as a whole vs.
line-by-line?
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Examination of Controls Over the Preparation of XBRL-Tagged Data
Not likely to be a stand-alone service Probably conducted in conjunction with other XBRL
services Client’s focus is on just delivering an accurate & complete
XBRL document [controls and efficiency are secondary for now]
Because XBRL document creation is bolt-on (after-the-fact), tagging is typically not part of a company’s SOX 404 internal control over financial reporting [but that could change in the future]
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AT Section 601, Compliance Attestation
AT section 601 provides guidance on performing an examination or agreed-upon procedures engagement related to: An entity's compliance with the requirements of specified
laws, regulations, rules, contracts, or grants or The effectiveness of an entity's internal control over
compliance with specified requirements. SEC Rule 405 of Regulation S-T imposes certain content,
format, submission and posting requirements that an entity’s compliance could be evaluated against.
However, the EDGAR Filer Manual includes highly detailed, technical information; as such, audit firms should consider carefully whether they have the technical expertise to perform such compliance services.
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General Requirements under SEC Rule 405 Regulation S-T
Information in interactive data format should not be more or less than the information in the ASCII or HTML part of the report
Use of the most recent and appropriate list of tags released by XBRL U.S. or the IASCF as required by EDGAR Filer Manual.
Viewable interactive data as displayed through software available on the Commission’s Web site, and to the extent identical in all material respect to the corresponding portion of the traditional format filing
Data in the interactive data file submitted to SEC would be protected from liability for failure to comply with the proposed tagging and related requirements if the interactive data file either Met the requirements; or Failed to meet those requirements, but failure occurred despite
the issuer’s good faith and reasonable effort, and the issuer corrected the failure as soon as reasonably practical after becoming aware of it.
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Review of an Assertion about XBRL-Tagged Data
Generally consist of inquiries and analytical procedures designed to provide a moderate level of assurance (i.e., negative assurance).
However, probably could not perform meaningful analytical procedures on XBRL-tagged data sufficient to achieve even this level of assurance and it is uncertain what other procedures could be identified that, when combined with inquiries, could form the basis for a review engagement.
Accordingly, the feasibility of a review engagement related to XBRL tagging is uncertain. If a review engagement could be developed, it would be important for the review report to communicate its limitations to users.
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Management Assertions (SAS 106) & Related Audit Objectives
Assertions about account balances Existence Completeness Rights and Obligations Valuation or Allocation
Assertions about classes of transactions and events Occurrence Completeness Accuracy Cutoff Classification
Assertions about presentation and disclosure Occurrence and rights and obligations. Completeness Classification and understandability
Audit Objectives Validity Completeness Ownership Valuation Cut-off Classification Disclosure
Based on research of Srivastava & Kogan
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Risk Based Approach for Conceptualizing Assertions
Data Deficiencies in the XBRL Instance Document Omissions of relevant data from the traditional format
documents (Completeness) Insertions of data not present in the traditional format
documents (Existence) Erroneous element values and / or attribute values
(such as context, unit, etc.) (Accuracy: Element Accuracy or Attribute Accuracy)
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Risk Based Approach for Conceptualizing Assertions
Deficiencies of the Mark-up in the XBRL instance Document Erroneous tagging of data that violates XML syntax
rules (Violation of Well-formedness) Erroneous tagging of data that violates XML Schema
(Violation of Validity) Inappropriate choice of XBRL elements to tag
traditional format document data (Violation of Proper Representation)
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Risk Based Approach for Conceptualizing Assertions
Deficiencies of XBRL Taxonomies used by the Filer Improper choice of general and industry-specific XBRL
taxonomies by the filer (Proper Taxonomies) Violations of XML or XBRL language rules in XBRL
taxonomy extensions by the filer (Valid Taxonomy Extensions)
Inappropriate introduction of new elements in XBRL taxonomy extensions (Proper Extension Elements)
Inappropriate / erroneous linkbases in XBRL taxonomy extensions (including the choice of inappropriate/misleading labels) (Proper Linkbases)
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An Accounting Intro to XBRL
Accounting can be found in the taxonomy• Accounting structure is in the linkbases• Definitions are explicit, not implied• Authoritative literature is linked • Taxonomy elements are highly vetted
• FASB, SEC, Public reviews
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Tools for Accounting
• FASB’s XBRL Yeti Tool• SEC’s EDGAR site• SEC’s XBRL site• XBRL US site• XBRL Cloud EDGAR Dashboard• FASB’s Codification of US GAAP
• Proposed XBRL for New ASC’s• Smart Phone App BRIX
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US GAAP Taxonomy 2011
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Path to the Taxonomy's Accounting
• FASB.org; click on FASB XBRL• Click on “taxonomy view”, then
• ‘Entire 2011 US GAAP Financial Reporting Taxonomy’
• Once there, type “cash” into search box
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FASB’s XBRL
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Yeti – A Taxonomy Reader
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SEC’s Interactive Data Site
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XBRL US Site
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XBRL Cloud’s EDGAR DASHBOARD
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The Codification of US GAAP
US GAAP was contained in over 12 publications of official and semi-official GAAP prior to the 2005-7 effort to place all US GAAP into an electronic index called ACS.
Access to the ACS is either public or professional. Professional access is a paid service.
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Accounting Standards Codification
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SEC’s EDGAR System
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Starbucks
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Starbucks
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Starbucks
125
Starbucks
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Starbucks
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XBRL US Smart Phone App
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Acknowledgements
Mike Willis and Eric Cohen, PwC
Charlie Hoffman, EDGAR Online
Yossef Newman, Deloitte
Walter Hamscher, Standard Advantage
Liv Watson, XBRL International
Jan Pasmooij, Royal NIVRA, Netherlands
Roger Debreceny, U. of Hawaii
Clinton “Skip” White, U. of Delaware
Raj Srivastava, U. of Kansas
Glen Gray, Cal State Northridge
Greg Zegarowski, Financial Leadership Corporation
Amy Pawlicki, AICPA
Paul Penler, E&Y
XBRL InternationalXBRL USCenter for Audit Quality
Apologies to anyone I missed.
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