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Chapter 9

XBRL

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Outline

• Learning objectives

• Purpose & nature of XBRL

• Terminology

• Instance document creation

• Internal control

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Learning objectives

1. Define the following terms as they relate to XBRL: extensible, specification, taxonomy, namespace, and instance document.

2. Explain the history and structure of XBRL.3. Discuss ways XBRL can benefit organizations.4. Identify software tools for creating XBRL-

tagged documents.5. Discuss internal control issues for XBRL.

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Purpose & nature of XBRL

• AcronymeXtensible Business Reporting Language

• Platform-independent tool tagging tool

• Provides context for business reporting information—most often, financial information

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Purpose & nature of XBRL

• Important characteristics– Open source– Extensible– Required for SEC reporting– Can also be used for internal information,

such as journal entries– Language—not a new set of GAAP– Overseen by XBRL International (

www.xbrl.org)

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Terminology• Extensible

Users can add tags as needed.

• SpecificationXBRL is an example of a broader group of languages called XML

Like any language,

XBRL has unique

terms that are

critical to

understanding it.

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Terminology• Taxonomy

– An organizational structure for XBRL tags

– Two broad types• Acknowledged• Approved

– Examples• US GAAP Taxonomy 2009• US SEC Certification

Taxonomy 2009• XBRL Global Ledger

Taxonomy

Like any language,

XBRL has unique

terms that are

critical to

understanding it.

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Instance document creation

1. Download the data to a spreadsheet.

2. Download the relevant taxonomy.

3. Map the data to the taxonomy; that is, determine which tags are associated with which data.

4. Tag the data with appropriate tagging software.

5. Validate the document.

6. File the document appropriately.

See Figure 9.2 for a flowchart of

these steps.

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Internal control

• Like any form of information technology, XBRL requires strong internal controls.

• Existing IT (and other) controls can be adapted for XBRL applications.

• Daily data backups

• Firewalls

• Periodic user training

• Disaster recovery plan

• Internal audit review

• Centralized approval process

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