XBRL In Action - Live Demonstration Of Concepts Q&A
Questions Posed During the Session
- What kind of reports can I create using XBRL?
- What are some of the reports that are already available in XBRL?
- How many reports can I represent in one instance document?
- When I file with the SEC, what file(s) do I have to send?
- Does your tool provide a stamp or certificate after validating my instance document?
- Where else is XBRL being used outside of the SEC?
- Does XBRL play any part in the convergence of GAAP and IFRS?
- How would you model "Line Items" in an "Order"? Would each possible type of "Line Item" have to be modeled as a schema element?
- Do you know cases where the XBRL rules/ checks are used for SOX testing?
- How long will it take to create a 10-Q?
- How do you produce footnotes associated with financial reports?
- How much time should one dedicate to learning the software and preparing the first instance document? Can the XBRL instance document be submitted to the SEC directly from the software?
- Do we need to access your website to request an evaluation copy of Interstage XWand? Or is it sufficient to make that request through this webcast?
- How does XBRL GL give you a more granular control?
Responses to Questions
What kind of reports can I create using XBRL?
When the taxonomy is created and provided by a regulatory authority, the reports that can be created using XBRL are already pre-defined. For example, the US-GAAP taxonomy comes with pre-defined reports like the Balance Sheet, and Statement of Income. In addition to these, users of XBRL are free to define their own reports by creating extensions to existing taxonomies or completely new taxonomies.
What are some of the reports that are already available in XBRL?
The most common financial statements required by the various regulators are defined in the respective taxonomies published by the regulators.
How many reports can I represent in one instance document?
A single XBRL instance document can contain any number of reports for any number of periods all based on the same taxonomy.
When I file with the SEC, what file(s) do I have to send?
When filing with the SEC, at the very minimum, you will have to send in the instance file, assuming no extensions have been made to the taxonomy. If the taxonomy has been extended, then the files associated with the extensions will have to be filed along with the instance document. This would include the schema file with the definitions of the new concepts and their attributes, and the corresponding linkbase files for the extended relationships.
Does your tool provide a stamp or certificate after validating my instance document?
Interstage XWand provides validation reports for all of the validations performed on the instance. There is no stamp or certificate provided following the validation.
Where else is XBRL being used outside of the SEC?
The FDIC has mandated the use of XBRL for call reports in the United States. Various regulatory bodies across the globe including the Tokyo Stock Exchange, the Financial Services Agency of Japan and the Central Bank of Spain are utilizing XBRL. The Netherlands and Australia are using XBRL for government reporting.
Does XBRL play any part in the convergence of GAAP and IFRS?
The current role that XBRL is playing in the convergence involves the creation of the taxonomies for both GAAP and IFRS in XBRL format. As the convergence gets more defined and complete, the hope is that XBRL will not only enable the filing but also help in making the transition/conversion smoother and more automated.
How would you model "Line Items" in an "Order"? Would each possible type of "Line Item" have to be modeled as a schema element?
The definition of "Line Items" will depend on the values that "Line Items" can take. If the values are fairly well defined and static, then modeling each specific line item as a schema element would certainly be the easiest option. If the values are dynamic, then the best option is to define the "Line Item" as a tuple with elements for storing things like the name, the ID, and the quantity.
Do you know cases where the XBRL rules/ checks are used for SOX testing?
While we have had customers discuss this in principle, we have not come across specific use cases where XBRL rules are currently being used for SOX testing.
How long will it take to create a 10-Q?
The time taken to create a typical financial report varies by company. Several factors come in to play including knowing what the starting point is, how the data for the report will be accessed, how much of the report creation will be automated, and how many extensions have been created. Creating the first report typically takes the longest; subsequent iterations take significantly lesser time.
Once the extensions have been created, and the data collated, tools such as Fujitsu Interstage XWand can significantly reduce the time and effort to create the actual XBRL instance document. The XWand Excel linkage feature, for example, allows users to create mappings between a taxonomy and an Excel template. Once the data is available in the Excel file, users can automatically create an instance document from that file.
How do you produce footnotes associated with financial reports?
Within Interstage XWand’s Instance Creator tool, there is a specific area assigned for entering/editing/linking footnotes associated with a fact which is activated by right-clicking on the corresponding fact.
How much time should one dedicate to learning the software and preparing the first instance document? Can the XBRL instance document be submitted to the SEC directly from the software?
The time spent on learning the software is much less than the time you will spend familiarizing yourself with XBRL concepts. Regardless of your choice of software, it should not take you more than a few days to get familiar with the software. Creating the first instance document will take significantly longer than the subsequent ones. Different tools handle the completed instance document differently when it comes to filing with the SEC. Some of the filing oriented tools/solutions provide that option.
Do we need to access your website to request an evaluation copy of Interstage XWand? Or is it sufficient to make that request through this webcast?
You can request an evaluation copy of Interstage XWand at http://www.fujitsu.com/global/services/software/interstage/download/xwand-toolkit-evaluation-download.html.
How does XBRL GL give you a more granular control?
XBRL GL provides the mechanism to capture transaction level details. This can then be subjected to a business rules driven process to convert the detailed data in to summary report(s). By defining the right business rules and conversion logic, coupled with the correct extensions, the level of detail can be altered to meet specific business needs. The granular control comes from the ability to alter and apply the business rules to utilize the transaction level information available from the XBRL GL based detailed data.