XBRL Financial Statement Case Study

1
XBRL Financial Statement Case Study

• Bob Laux
• Director, Technical Accounting and Reporting
• Microsoft Corporation

2
Microsofts Use of XBRL in External Reporting

• Financial statements included with quarterly
  earnings release formatted in XBRL
• Posted to Investor Relations site on the same day
  as earnings release
• 10-K/10-Q Income Statement, Balance Sheet, Cash
  Flows Statement, and Stockholders Equity
  Statement formatted in XBRL
• Filed with the SEC via an 8-K
• Currently looking at potentially tagging MDA and
  the footnotes

3
Microsofts Use of XBRL in External Reporting

• Pain Points
• Some manual tagging, but increasing use of Office
  Tool for XBRL prototype
• Present EDGAR system does not allow the receipt
  of XBRL/XML files unless it is in an altered form
• Why Bother?
• Shows leadership
• Benefits our stakeholders
• Benefits Microsofts internal and external
  reporting

4
Microsofts Use of XBRL in External Reporting

• Benefits to our Stakeholders
• Enhanced analytical capabilities
• Performance versus others
• Performance versus multiple prior periods
• Lower cost of consuming information
• Faster access to information
• More timely, accurate data for decisions
• Enhanced functionality

5
Microsofts Use of XBRL in External Reporting

• Benefits to Microsofts Internal and External
  Reporting
• Data integrity
• Decrease/elimination of the reentering of data
• Ability to streamline processes for collecting
  and reporting financial information
• Linking of information from disparate systems
• Ability to enhance monitoring of internal controls

6
Microsofts Use of XBRL in External Reporting

• Looking forward
• Enhanced Business Reporting
• Framework to put structure around external
  reporting of information not currently covered
  under GAAP, including a discussion of management
  strategy and plans, risks and opportunities faced
  by a company, as well as industry-specific,
  process-oriented value drivers and financial and
  non-financial key performance indicators
• XBRL is an important enabler for this effort