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Dimensions and Formulas for Financial Professionals

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Title: Dimensions and Formulas for Financial Professionals


1
Dimensions and Formulas for Financial
Professionals
  • Charles Hoffman, CPA UBmatrix

2
Agenda
  • Introductions
  • Understanding XBRL Dimensions
  • Overview of multidimensional analysis and XBRL
    Dimensions
  • Dimensions impact on IFRS-GP taxonomy
  • Dimensions and tuples discussion
  • Understanding business rules (formulas)
  • What are business rules
  • Business rules in financial reporting
  • Financial reporting in the future impact of
    business rules
  • Questions and discussion

3
Introductions
  • Who am I
  • Who are you?

4
Understanding XBRL Dimensions
5
Understanding XBRL Dimensions
  • Brief explanation of multidimensional analysis
  • Overview of XBRL Dimensions
  • Using an Example
  • Intentionally keeping it simple
  • Adding more complexity
  • Using a more complex example
  • Common dimensional use cases
  • Sales analysis (covered above)
  • Sector breakdown
  • Continuing, discontinued operations
  • Excluding specific dimensions
  • Implicit (typed) dimensions
  • Dimensions impact on IFRS-GP taxonomy
  • Dimensions and tuples discussion

6
Brief Explanation of Multidimensional Analysis
  • Overview of XBRL Dimensions
  • Using an Example
  • Intentionally keeping it simple

7
Adding More Complexity
  • Using a more complex example

8
Common Dimensional Use Cases
  • Sales analysis (covered above)
  • Sector breakdown
  • Continuing, discontinued operations
  • Excluding specific dimensions
  • Implicit (typed) dimensions

9
Dimensions Impact on IFRS-GP Taxonomy
  • Segmental breakdown

10
Dimensions and Tuples Discussion
  • When to use tuples, when to use dimensions

11
Business Rules (Formulas)
12
Understanding Business Rules (Formulas)
  • What are business rules?
  • Syntax
  • Semantics
  • Metadata
  • Business Rules
  • Business rules in financial reporting
  • Financial reporting in the future impact of
    business rules

13
What are Business Rules?
  • Syntax
  • Semantics
  • Metadata
  • Business rules

14
Syntax
  • Syntax is similar to the order of the words
  • This is a syntax
  • ltfoobar johndoegt345lt/foobargt
  • foo, bar, john, doe, 345
  • foobar john/doe/345/foobar
  • XML parsers enforce syntax (not semantics)
  • XML Schema enforces syntax (not semantics)

15
Semantics
  • Semantics is basically meaning
  • Fundamentally, XBRL is a method of expressing
    semantics or semantic meaning
  • This semantic meaning is expressed using XML
    syntax
  • Examples of semantic meaning
  • Concept name such as CashAndCashEquivalents
  • Concept is a debit and is as of a point in
    time
  • Its label is Cash and cash equivalents
  • It contributes to the value of AssetsCurrent
  • It shows up on the balance sheet and cash flow
    statement

16
Metadata
  • Metadata is data about data
  • Consider an invoice
  • Data on the invoice might include
  • Invoice number of I-10001
  • Invoice date of July 1, 2005
  • Total invoice amount of 9000
  • Metadata for the invoice might include
  • The invoice number must start with the letter
    I, be followed by a dash, and must be 5 digest
    long
  • The invoice MUST have an invoice number, an
    invoice date, at least one line item, and a total
  • The sum of the line item amounts MUST equal the
    total invoice amount.

17
Business Rules
  • Business rules are a way of expressing semantic
    meaning
  • Or a formal and implementable expression of some
    user requirement
  • For example
  • Assets MUST equal total liabilities plus total
    equity
  • If property, plant and equipment exists on the
    balance sheet, then a PPE policy and a PPE
    disclosure MUST exist and they MUST contain
  • May be definitional, express calculations,
    process oriented, regulations, instructional

18
Business Rules in Financial Reporting
  • In a taxonomy
  • Movement analysis
  • Supplement a taxonomy
  • Ratios
  • Disclosure checklist
  • If this, then that

19
Financial Reporting in the Future Impact of
Business Rules
  • FDIC reduction of errors
  • 18,000 errors ? 0 errors
  • Applications of the future
  • Financial creation driven by business rules
  • Cash flow statement creation example
  • Disclosure checklist example

20
Questions and Discussion
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