Questions:
- Q1. Are XBRL based financial statements currently considered "audited" and covered by the audit opinion letters?
- Q2. Are you suggesting that XBRL will be tagged at the transaction level when the transaction is posted to the GL or at the consolidated or final financial statement level?
- Q3. Can you please clarify the difference between XBRL and IDEA (Interactive Data Electronic Application) in regards to the SEC proposal requiring IDEA? Will IDEA require XBRL language?
- Q4. Can you please go into further detail including possibly providing examples as to how XBRL benefited your organization (Dynaxys)? Specifically, how does coding for XBRL assist our consolidation? How does it help automate our reviews and approvals?
- Q5. Can you tag from Oracle? (our financial data is there).
- Q6. Could you please talk a bit about how XBRL GL fits into this automated XBRL reporting?
- Q7. Given the stated benefits of XBRL reporting why would so many companies take a "wait and see" approach to the SEC's actions? It seems companies would voluntarily adopt as soon as the SEC allowed XBRL filings in order to gain the cost savings, compliance, and transparency benefits.
- Q8. Has anyone evaluated the pros and cons of the three possible points in the process to tag data - 1) Source 2) after the close 3) after the 10-K/Q has been produced?
- Q9. Has Scott produced research that can be purchased on the impact of XBRL both currently & in the future?
- Q10. I realize this is a short webcast, but I had hoped that the panelists would provide concrete examples of how XBRL is used elsewhere other than 10-K/Q filings. There was a mention of how an interface file in XBRL was able to be reused for an additional interface to a new system. Other than that, most of the discussion is that XBRL is great and it should be used everywhere.
- Q11. If I already have a lot of these benefits through an excellent Hyperion application, what benefits can I get from XBRL beside SEC compliance?
- Q12. Is the XBRL mandate required for all financial companies? All companies? Or companies of a specific size?
- Q13. Since XBRL is a SEC mandate for public companies, I suspect it will force external non-public clients of public clients to convert to XBRL, do you agree?
- Q14. What are the implications of changes in accounting rules on XBRL taxonomies and reporting?
- Q15. What is a practical way to get hands-on training to use XBRL with an existing reporting system?
- Q16. What is the average XBRL implementation cost for large companies vs. smaller companies?
- Q17. What is the best/most user friendly software? Is the software primarily used to tag? Or is it used to tag and then convert? Please advice. Thanks.
- Q18. What opportunities exist for companies looking to offer this service to their clients? What are the known opportunities as of now?
- Q19. When will XBRL be required for public reporting?
- Q20. Who benefits most from XBRL? The CFO, Controller or someone else?
Q & A from the webinar
Q1: Are XBRL based financial statements currently considered "audited" and covered by the audit opinion letters?
A: No, they are not. The proposed rules exempt the machine-readable "interactive data file" from liability. However, proposed
Rule 406(b) of Regulation S-T provides that "interactive data in viewable form" will be subject to liability under the
securities laws to the same extent as the related official filing.
Q2: Are you suggesting that XBRL will be tagged at the transaction level when the transaction is posted to the GL or at the
consolidated or final financial statement level?
A: The potential and promise of XBRL will be fully realized when financial data is tagged in XBRL at the transaction level.
The final financial statement would be one of the by-products at that point.
Q3: Can you please clarify the difference between XBRL and IDEA (Interactive Data Electronic Application) in regards to the
SEC proposal requiring IDEA? Will IDEA require XBRL language?
A: IDEA is the abbreviation for Interactive Data Electronic Applications. It is a platform for providing and using data in
a format that will facilitate a higher degree and variety of processing. This will replace the EDGAR system in the near future.
In the SEC's explanation of interactive data, reference has been made to "tags" associated to the data and hence XML would
be incumbent. Whether the form of XML used will exclusively be XBRL is not asserted by the SEC at this point. XBRL has the
potential to fulfill the promise that IDEA proposes.
Q4: Can you please go into further detail including possibly providing examples as to how XBRL benefited your organization
(Dynaxys)? Specifically, how does coding for XBRL assist our consolidation? How does it help automate our reviews and approvals?
A: We tagged data at the journal level. It enabled us to concatenate instance documents or filter instance documents so that
data could be sent to different systems without re-entry. It was fast, easy, and a complete success. Our use case is described
at http://www.xabratools.com/news.php for February 2008.
XBRL codes enable computers to identify the financial data elements which will help in automating consolidation without ambiguity.
The XBRL taxonomy can provide automated validation of the financial data which will reduce human interaction in the review
and approval process. People can deal with the exceptions.
Q5: Can you tag from Oracle? (our financial data is there).
A: Currently, you cannot directly add XBRL tags to the data in Oracle. Using appropriate technologies, you can extract/query
data from Oracle and convert it to XBRL.
Q6: Could you please talk a bit about how XBRL GL fits into this automated XBRL reporting?
A: XBRL GL acts as the facilitator to easily move data between transactions and events on one side, and financial, operation
and management reports on the other. It provides the flexibility required to move financial information effectively amongst
accountants, auditors, investors, etc. It will open up the information stored within General Ledger systems across applications,
platforms and also reporting boundaries. It provides a mechanism to provide the details that will make up the financial report
itself.
Q7: Given the stated benefits of XBRL reporting why would so many companies take a "wait and see" approach to the SEC's
actions? It seems companies would voluntarily adopt as soon as the SEC allowed XBRL filings in order to gain the cost savings,
compliance, and transparency benefits.
A: We see that beginning to change. In the past, the key proponents of the benefits of XBRL were the vendors and consortium
members. Given the growing awareness with the coverage around the SEC’s proposal, we see a lot more interest from the IT and
accounting groups within companies.
Q8: Has anyone evaluated the pros and cons of the three possible points in the process to tag data - 1) Source 2) after the
close 3) after the 10-K/Q has been produced?
A: Tagging at the source automates external reporting; provides real-time internal reporting; and enables data integration
using a globally accepted standard. In the same way that standards have improved productivity for the shipping industry, the
construction industry and the retail industry, standardized data can have far-reaching benefits. You can free the data from
the confines of source systems to enable easier consolidation and reuse. The disadvantage to tagging at the source is that
the mapping process could be time-consuming and resource-intensive at that level of detail. At the same time, it is done only
once. Additionally, there are development requirements to be able to provide XBRL outputs for filing from internal systems.
Q9: Has Scott produced research that can be purchased on the impact of XBRL both currently & in the future?
A: Scott is working on reports on this topic with anticipated publication in September. There will be one report on the SEC
requirement and what enterprises will need to do to meet them and another report on the XBRL technology itself.
Q10: I realize this is a short webcast, but I had hoped that the panelists would provide concrete examples of how XBRL is
used elsewhere other than 10-K/Q filings. There was a mention of how an interface file in XBRL was able to be reused for an
additional interface to a new system. Other than that, most of the discussion is that XBRL is great and it should be used
everywhere.
A: Outside of the 10-K/Q filings, XBRL is already used by banks to adhere to the FDIC's mandate that requires call reports.
In Japan, XBRL is used by the Tax Corporation, the Tokyo Stock Exchange, and the Japan Financial Services Agency. In addition
to using XBRL for filing, analysis based on this standard has been showcased for several years now.
Q11: If I already have a lot of these benefits through an excellent Hyperion application, what benefits can I get from XBRL
beside SEC compliance?
A: The benefit that you get is the ability to exchange information amongst various applications - so you can use your favorite
solutions for functions that they do best (Accounts, Analysis, BI, etc). It gives you better use of the information stored
within the constraints of one data source. It provides expansion of the level of transparency, accountability, and auditability
within the corporation. It also gives you the ability to change your manual controls into automated controls.
Q12: Is the XBRL mandate required for all financial companies? All companies? Or companies of a specific size?
A: The mandate is not just for financial companies - it covers all companies reporting to the SEC using the US-GAAP. There
is a phased approach that requires the largest companies to file in XBRL as early as December 15, 2008 and the others to follow
in subsequent years.
Q13: Since XBRL is a SEC mandate for public companies, I suspect it will force external non-public clients of public clients
to convert to XBRL, do you agree?
A: That is a possibility, although not a requirement at this time.
Q14: What are the implications of changes in accounting rules on XBRL taxonomies and reporting?
A: Changes to the accounting rules that impact the facts reported to the SEC will have to be reflected in the corresponding
taxonomies being revised.
Q15: What is a practical way to get hands-on training to use XBRL with an existing reporting system?
A: The best way to get familiar with XBRL is to take a hands-on approach. Take an existing report and try converting it to
XBRL on your own. Fujitsu provides tools that let you do this. Download Free Evaluation Software.
Q16: What is the average XBRL implementation cost for large companies vs. smaller companies?
A: The implementation costs vary depending on the level of automation companies want realized through the use of XBRL.
Q17: What is the best/most user friendly software? Is the software primarily used to tag? Or is it used to tag and then convert?
Please advice. Thanks.
A: Every user has her/his own comfort level and evaluation criteria. We recommend that you evaluate a few tools and then make
the decision for yourself. Fujitsu is one of the premier providers of XBRL software. Interstage XWand tools provide the ability
to do all things 'XBRL'. You can develop and extend taxonomies, create and validate instances, map and convert reports in
CSV to XBRL, generate HTML reports, and do much more with Interstage XWand. For more information, please visit http://www.fujitsu.com/global/services/software/interstage/xwand/
Q18: What opportunities exist for companies looking to offer this service to their clients? What are the known opportunities
as of now?
A: If the SEC mandates XBRL, the number of XBRL documents being produced will increase. Companies will start to use XBRL for
both internal reporting as well as filing. Some industries are beginning to think about using XBRL for reporting operating
results. Some are discussing sustainability reporting as the next initiative. Having your tools consume and produce XBRL will
be something that your clients may need/prefer.
Q19: When will XBRL be required for public reporting?
A: If the proposed mandate is accepted, then the earliest filings in XBRL will be required as early as the end of this year.
Q20: Who benefits most from XBRL? The CFO, Controller or someone else?
A: The level of automation and integration applied in conjunction with XBRL will result in benefits for different stakeholders
within organizations. It will be easier for regulators to analyze performance and identify anomalies. It is beneficial for
analysts and investors to have more transparency. Some accounting firms are sold on the concept of continuous audit to reduce
the cost and time of the audit. Companies can use that same information -early identification of challenges promotes better
performance. See http://www.xbrl.org/XBRLandBusiness/
