Business Reporting on the Internet Impact on Curriculum

1
Business Reporting on the Internet- Impact on
Curriculum -

• Clinton E. White, Jr
• Professor of Accounting MIS
• Lerner College of Business
• University of Delaware

2
The Business Reporting Supply Chain
Processes
Business Operations
Internal Business Reporting
External Business Reporting
Investment Lending Regulation
Economic Policymaking
Participants
Central Banks
Companies
Financial Publishers Data aggregators
Investors
Trading Partners
Management accountants
Auditors
Regulators
Software Vendors
SourceMike Willis, PWC XBRL
3
Manual Interfaces

• The current situation
• Too many proprietary software packages and manual
  interfaces
• Create friction points!
• Validation is a persistent problem
• What can you trust?
• Manual controls
• Data is not reusable
• Data is not comparable (not standardized)
• Processed without context
• Documents are not intelligent

4
The Business Reporting Supply Chain
XML Specs
XBRL External Reporting
Processes
XBRL GL
Business Operations
Internal Business Reporting
External Business Reporting
Investment Lending Regulation
Economic Policymaking
Participants
Central Banks
Companies
Financial Publishers Data aggregators
Investors
Trading Partners
Management accountants
Auditors
Regulators
Software Vendors
SourceMike Willis, PWC XBRL
5
XML/XBRL Interfaces

• Processing with XML/XBRL
• The next killer app in the business reporting
  supply chain
• Frictionless processing
• Software apps that understand XML
• Validation is automated
• Data documents can be trusted
• Many controls are automated
• Data is processed with context
• Data documents are intelligent
• Data is reusable
• Data is analyzable comparable

6
XML/XBRL

• XML
• The foundation for a new computing paradigm
• Automated, intelligent, frictionless processing
• XBRL
• The foundation XML vocabulary for a new business
  reporting paradigm
• Standardized, intelligent processing
• It should be a part of EVERY business students
  education!

7
Accounting data
8
Accounting information
9
(No Transcript)
10
AIS Classes

• Objective
• Understand the technical foundation
• Understand XBRL as a major component of the AIS
• Understand its role in the information supply
  chain
• Important pieces
• Work with the XML foundation (including Schema,
  namespaces, XLink)
• Work with XBRL instance documents
• Use XSLT to reuse information create reports
• Work with the business information supply chain

11
MIS Classes

• Objective
• Understand XML
• Understand XBRL as an example of a
  business-oriented XML vocabulary and an evolving
  business reporting standard
• Understand its role in the information supply
  chain
• Important pieces
• Work with the major components of XML
• Work with validation in business processes
• Work with XBRL produce reports
• Work with the business information supply chain

12
Auditing Classes

• Objective
• Understand the basics of XBRL
• Understand XBRL instance documents
• Understand financial reports in XBRL format
• Understand SOX requirements for auditing them
• Important pieces
• Work with XBRL instance documents
• Work with how to verify element names and
  validate XBRL instance documents
• Perform risk analyses

13
Financial Accounting/ReportingClasses

• Objectives
• Understand the basics of XBRL
• Understand XBRL as the computer-processable
  instantiation of financial reporting concepts
• Understand the analysis of XBRL financial
  statements
• Important pieces
• Work with XBRL instance documents
• Work with XBRL taxonomies
• Work with XBRL analysis tools
• Build personal financial analysis models

14
Accounting Concepts vs. XBRL Technology
More
Financial
Managerial
Acctg concepts
Auditing
AIS
More
XBRL technology
15
XBRL in the Curriculum

• What should all accounting graduates know about
  XBRL?
• XBRL is the instantiation of the Accounting model
  in computer-processable form
• Accounting concepts metadata in taxonomies
• Metadata and context in instance documents
• XBRL taxonomies embody financial reporting
  standards (USFRTF, PFS, IFRS)
• How to find them use them
• XBRL instance documents report facts in a
  specific context defined in the instance document
• How to read them, create them analyze them
• The business reporting supply chain
• The benefits of standardization of business
  reporting

16
XBRL in the Curriculum

• What should all business graduates know about
  XBRL?
• The business reporting supply chain
• The benefits of standardization of business
  reporting
• XML is the new standard for data tagging and
  communication across networks
• XBRL is the standard for financial reporting
• Taxonomies and instance documents
• Understanding using XBRL financial reports
• Accessing analyzing financial information

17
An XML/XBRL-based Curriculum

• Computer literacy (foundation)
• Concepts desktop tools
• XML
• Intro to accounting
• Accounting concept -gt XBRL item
• Financial reporting -gt XBRL instance documents
• Intermediate accounting
• Financial analysis of XBRL instance documents
• AIS
• XML XBRL in depth including validation
  reporting
• Cost accounting
• XBRL for internal reporting (XBRL GL)
• Auditing
• Auditing XBRL instance documents (SOX)
• Documenting computerized controls
• Risk assessment
• Advanced International Tax
• XBRL for consolidations, international tax
  applications

18
Other XML Vocabularies to Watch

• ICXML (Internal Control XML) (OAGi)
• Risk assurance, IC, mgmt. certification
  information
• SAML (Security Assertions ML) (OASIS)
• User authentication, entitlement, attribute
  information
• XACML (X Access Control ML) (OASIS)
• Information systems security policies
• XML tax initiatives
• TIGERS, FSET, OASIS,

19
Impact on the Curriculum

• Accounting financial reporting concepts in
  computer processable form
• Information transparency
• The business information supply chain
• Validation of information by creator
• Validation of documents before use

20
Introducing XBRL

• How much time do you want to devote to the
  coverage of XBRL?
• 1 week or less?
• Financial reporting concepts in XBRL taxonomies
• Transparency analysis of financial information
• 2 weeks?
• Financial reporting concepts in XBRL taxonomies
• Facts in XBRL instance documents
• 3 weeks or more?
• XML foundation ? XBRL vocabulary
• Build, validate and render XBRL instance documents

21
Resources

• XBRL in business
• www.cfo.com
• XBR-What? (August 1, 2006)
• www.microsoft.com
• Microsoft and Rivet Software Work Together to
  Pioneer Streamlined XBRL-based Financial
  Reporting for SEC
• Research and Analysis Firm Saves Time with
  Microsoft Office-based XBRL Solution
• www.edgar-online.com
• EDGARPro tour
• I-Metrix - tour

22
Resources

• XBRL in accounting
• www.aicpa.org
• XBRL Articles of Interest Useful Tools
• www.xbrl.org
• Education and Training
• For a course module on XBRL
• www.SkipWhite.com
• The Accountants Guide to XBRL