Xbrl

Xbrl

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  Accounting Information Systems(ACCT 312) XBRL: eXtensible Business Reporting Language PowerPoint Presentations
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  What is XBRL? XBRL is a freely available electronic language for financial reporting.  XBRL provides an XML-based framework that the global business information supply chain can use to create, exchange, and analyze financial reporting information including, but not limited to, regulatory filings such as annual and quarterly financial statements, general ledger information, and audit schedules.  XBRL is not about establishing new accounting standards but enhancing the usability of the ones that we have through the digital language of business.  XBRL will not require additional disclosure from companies to outside audiences.
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  What is XBRLUsed For?  An XBRL-based financial statement is a digitally enhanced version of paper-based financial statements, which include the balance sheet, income statement, statement of equity, statement of cash flows, and the notes to the financial statements as well as the accountant's report.  XBRL documents can be prepared efficiently, exchanged reliably, published more easily, analyzed quickly, retrieved by investors simply, and enables smarter investments.  Other potential XBRL applications include tax returns, regulatory filing, general ledger, authoritative literature, and management reporting.
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  Financial Reporting ProcessWithout/With XBRL Accounting System Explanatory Text Third Party Information Printed Financials Regulatory Filings Web Site Tax Return Trade Filings Accounting System Explanatory Text Third Party Information Printed Financials Regulatory Filings Web Site Tax Return Trade Filings XBRL Documents
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  What are theBenefits of XBRL for Financial Statements? With XBRL, information will be entered once and the same information will be "rendered" as  a printed financial statement,  an HTML document for a Web site,  an EDGAR filing file for SEC,  a raw XML file, or  a specialized reporting format such as periodic banking and other regulatory reports. Specific benefits of XBRL include:  Allows users to quickly access the information they need  Permits the automatic and reliable exchange of financial information  Does not require a change to accounting standards or disclosure policies  Eliminates the need to reenter data for different users  Lowers the cost to prepare and distribute financial statements  Allows accountants to quickly and easily consolidate and scrutinize internal data for use in financial reports  Enhances transparency of financial reporting
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  Who will benefitfrom using XBRL?  Companies who prepare financial statements: More efficient preparation of financial statements because they will be created one time and rendered as printed reports, on Web sites, as Edgar filings, or as other regulatory filings.  Analysts, Investors, and Regulators: Enhanced distribution and usability of existing financial statement information. Automated analysis, significantly less re-keying of financial information from one form into another form, receiving information in the format you prefer for your specific style of analysis.  Financial publishers and data aggregators: More efficient data collection lowers operating costs associated with custom, idiosyncratic data feeds and reducing errors while concentrating on adding value to the data and increasing transaction capacity  Independent Software Vendors: Virtually any software product that manages financial information could use XBRL for its data export and import formats, thereby increasing its potential for full-interoperability with other financial and analytical applications.
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  Three Requirements forthe Successful Deployment of XBRL  Creation of a specification that is the same for all companies that is consistent from one financial statement to another.  An application that will allow the creation of financial statements ”tagged” with XML that adhere to the specifications.  Style sheets which render information for a specific or variety of formats. XBRL for financial statements will provide agreement on the terms used by establishing uniform categories for financial data. Yet, the system remains flexible to accommodate any company’s internal environments, processes, systems, and even styles.
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  Comprehensive XBRL Example Acomprehensive example is illustrated from http://www.xbrlsolutions.com/Public/Demos/FinancialHighlights. This demo explains various stages of the XBRL creation process:  Data Stores: how to assess data stored internally to put it in an XBRL format.  Preparing XBRL: how to prepare an XBRL document.  Validation: how to validate the document to be sure that it is prepared correctly.  Publishing: how to make the information available to the public.  Styling Information: how raw XBRL can be styled to make it more useful to humans.  Reusing: how information can be put into a different format and reuse without rekeying information.  Analyzing: how information can be extracted automatically into a spreadsheet model, rather than having to rekey.  Conclusion
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  Discussion Questions  DoesXBRL set new accounting standards?  Is XBRL a standard chart of accounts?  Does XBRL require additional disclosure?  Is XBRL a U.S. centric initiative?  How will XBRL affect the assurance function?  Does XBRL represent an opportunity for continuous auditing?  Does XBRL make financial information more comparable?  How will the accounting profession be different because of XBRL?  What other XML languages will affect business?