Chapter 9

XBRL

McGraw-Hill/Irwin

2013 The McGraw-Hill Companies, Inc., All Rights Reserved.

Outline
Expected outcomes
Purpose and nature of XBRL
Terminology
Benefits
Risks and internal controls
Tagging
9-2

Expected outcomes
Define the following terms as they relate to XBRL:
extensible, specification, taxonomy, namespace,
instance document.
Explain the history and structure of XBRL.
Discuss ways XBRL can benefit organizations.
Identify software tools for creating XBRL-tagged
documents.
Discuss internal control issues for XBRL.

9-3

Purpose and nature of XBRL

XBRL is a tool for
tagging (labeling)
financial data.
It provides context for
those data; i.e.,
allows them to be
interpreted more
easily.

Important ideas
Open source
Software & hardware
independent
Not a new set of
GAAP
Required for SEC
filings
Can be expanded /
extended by virtually
anyone
9-4

Purpose and nature of XBRL

XBRL International
Not-for-profit
consortium of over 600
organizations
worldwide
Builds XBRL language
Promotes & supports
its adoption

www.xbrl.org

9-5

Terminology
Extensible

Specification

XBRL will never be

XBRL is part of a larger

finished. It can be

family of tagging

extended, within certain

languages known as

guidelines, through the

XML (extensible markup

creation of new tags.

language). Thus, XBRL

is a specification of XML.

9-6

Terminology
Taxonomy
The basic organizational
unit of the XBRL
language. Taxonomies
are sets of tags such as
those shown on the
right.

US GAAP taxonomy
2009
CL China Listed
taxonomy
Global Ledger
taxonomy
IFRS General Purpose
taxonomy 2008

9-7

Terminology
Namespace
The Internet address (URL) where an XBRL taxonomy
lives. Namespaces must be declared at the beginning
of an XBRL document so computers know where to go
to find the meaning of tags.

9-8

Terminology
Instance document
A document, such as a
balance sheet, properly
formatted with XBRL tags. In
the SECs EDGAR database,
instance documents are
labeled interactive data.

9-9

Terminology
Microsofts income
statement from its 10-Q.
This document was
generated from an XBRL
instance document.

9-10

Terminology
Here is part of the XBRL code from
Microsofts instance document.

9-11

Terminology
Lecture break 9-1
Point your web
browser to the XBRL
web site.
Click taxonomy
information on the
left.
Click XII Recognized
Taxonomies.

Based on the information

there, what is the
difference between an
approved and an
acknowledged
taxonomy?

9-12

Benefits
More efficient data
collection and
reporting
Reduced cost
Faster, more reliable
consolidations
Simpler regulatory
reporting

Facilitates data
consumption and
analysis
More time for valueadded tasks
Quicker, more efficient
decisions
Better communication
with banks, regulators
and other stakeholders

9-13

Risks and internal controls

Error issues
Incorrect tagging
Inappropriate
taxonomy

Auditing issues
Document validation
Client processes
associated with XBRL

Control issues
Authorizations for:
Tagging
Taxonomy selection

Using XBRL: Audit and

Control Implications by
G. Gray. IT Audit, 10
August 2007.

9-14

Risks and internal controls

Lecture break 9-2
Consider the risks on the previous slide.
Suggest at least one internal control for each
risk. Is the control you suggested preventive /
detective / corrective in nature?

9-15

Tagging
Nearly all tagging is
automated.
Tagging software
often functions as an
add-on to some
other software, such
as Excel or
Peachtree.

Packages include:
Ez-XBRL
Crossfire (Rivet
Software)
UB Matrix

List of other XBRL

tagging software from
XBRL International

For more information and links, check out

the XBRL post on Dr. Hurts AIS blog.
9-16

Classroom assessment
This chapter has
focused on the
eXtensible Business
Reporting Language.

On your own, write down

two questions you have
about XBRL.
Work with a partner to
consolidate your lists.
Work with another pair
(group of four) to make
one master list.

9-17

9-18