IFRS Reporting with XBRL for Financial People

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IFRS Reporting with XBRL for Financial People

• Marc van Hilvoorde - KPMG
• Charles Hoffman, CPA UBmatrix

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Agenda

• Introductions
• Financial we will create
• Important distinction Dynamic versus Static
  reporting
• Taxonomies Used
• Four approaches to creating
• Walk through using generic approach
• Final result

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Introductions

• Marc
• Charlie
• Who are you?

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Financial We Will Create

• Financial Highlights
• Balance Sheet
• Income Statement
• Cash Flow Statement
• Statement of Changes in Equity
• Accounting Policies
• Explanatory Disclosures

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Important Distinction STATIC versus DYNAMIC
Reporting

• Static basically a form
• Taxonomy does not change from users perspective
• Therefore input template does not change
• Dynamic not a form
• User may change taxonomy
• Therefore input templates change
• Static-ized dynamic looks like a form to user
• Someone else changes the taxonomy and template
  for you
• This is NOT really a long-term solution for
  financial reporting in many situations, is in some

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Taxonomies Used

• We assume you have and understand taxonomies,
  dont have time to cover in this class
• IFRS-GP
• XBRL Dimensions
• Formulas (proprietary at this point)
• For movement analysis
• For disclosure checklist
• Sample Company company extension taxonomy

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Four Approaches to Creating

• Notepad
• Off the Shelf instance creator application
• Form completion-type tool (Turbotax)
• Generic Excel approach

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Pros and Cons of Each Approach
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Notepad

• Would never really use Notepad alone
• May be part of total solution, tweaking what is
  generated by other solutions (at this point)
• 100 control, absolutely can get you where you
  need to go
• Very difficult, must know a lot about XBRL
• Still need a taxonomy creator and validator
• Not a real solution for business users
• Very doable by consultants who understand XBRL
• Today, part of other solutions

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Off the Shelf Instance Creator Application

• May (or may not) be easy enough for business
  users to use
• May (or may not) support all needed functionality
  within one application
• Taxonomy creation done in separate application
• Validation done in other applications
• Business rules done in separate application
• May (or may not) support all needed taxonomy
  patterns
• May (or may not) support all existing XBRL
  features
• XBRL Dimensions
• Business rules
• May use proprietary solutions to fill in gaps
• Use of Note pad to make any adjustments

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Static Template Driven Tools

• Very easy for business users to use
• Not flexible
• Cannot extend taxonomy
• Cannot change input forms
• A consultant
• can change the taxonomy for you
• can change the templates for you
• Not a real solution for some situations
  long-term, is for others
• Takes to long to change taxonomies
• Takes to long to change templates
• Costs too much
• But this approach can work in certain situations

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Generic Excel Application

• It is exactly what YOU desire
• You have to build it yourself or use someone
  elses application
• Some with Excel macro experience can easily do
  this
• Only 300 lines of code in application we will use
• 100 control
• You must use other applications to create a total
  solution
• Taxonomy creator to build taxonomy
• Validator, too expensive to create your own
  validator
• Flexible
• Does static or dynamic type reporting
• Approach OK for some situations, not for other
  situations
• Not an approach for the typical business user

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Walk Through Using Generic Approach

• Vendor-neutral
• 100 of solution
• Separate taxonomy creator
• Separate validator
• XBRL Dimensions
• All taxonomy patterns
• Business rules
• Many business users CAN use this approach
• Documentation available
• Files are available
• 100 valid XBRL, all calculations validated,
  dimensions expressed, business rules validated,
  etc state of the art

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Steps

• Create/obtain taxonomies
• Create/set up templates
• Map template cells to XBRL
• Lookup information
• DTS (taxonomy) information
• Contexts information
• Units information
• File saving information
• Review to be sure you have it right
• Generate
• Validate
• Automated
• Human validation

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Financial We Will Create

• Statement section
• Issues

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Financial Highlights Process and Issues

• Very basic
• Extension concept
• Concepts in multiple locations

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Balance Sheet - Process and Issues

• Very basic
• Calculations
• Info MUST be in XBRL, not on report

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Income Statement Process and Issues

• Very basic
• Weird validation report

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Cash Flow Statement Process and Issues

• Very basic
• Multiple contexts
• Polarity of values issues to a degree
• Simple movement analysis

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Statement of Changes in Equity Process and
Issues

• Very basic
• Multiple contexts
• Movement analysis

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Accounting Policies Process and Issues

• Very basic
• Text
• Chunks versus pieces of data

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Explanatory Disclosures Process and Issues

• Very basic (for the most part), looks complex
• Text/numeric combination
• Segment information (dimensions)
• Tuples (complex data)
• Massive tuples
• Nested tuples

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Questions and Discussion

• Static reporting is easy, easy, easy with XBRL
• We are getting there, but not there yet in terms
  of business-user level software for actually
  using XBRL
• Some steps are still too hard
• Creating taxonomies
• Dynamic reports (static reports are easy, as
  long as the template is built for you)
• But, it is VERY possible to report using XBRL
  using state of the art techniques