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XBRL, eXtensible Business Reporting Language, is a global electronic information format designed to transmit and store business information in a machine readable format. XBRL is also referred to as “interactive data” by the U.S. Securities and Exchange Commission (“SEC”).  Companies that use XBRL assign unique, electronically readable tags to all individual disclosure items within business reports. These tags are part of taxonomies developed by market constituents and are publicly available and license free. Taxonomies consist of financial concept definitions in which each business concept is defined and assigned a relationship to other concepts.

The idea behind XBRL is simple.  Historically business reports treated financial information as blocks of text like a printed document or a web page. Blocks of text cannot be read by computers. But with XBRL, identifying tags provide each individual item of data with electronic content markers.

The SEC now mandates XBRL for all publically traded companies.  XBRL is required to be applied to companies 10K (annual financial statements), 10Q (Quarterly financial statements), Registration statements, 8K (filing of important investor information), 20F certain foreign private issuers to provide information and 40F Registrations and Annual Report for Canadian Securities.

This course reviews the basic concepts of XBRL, what it is, why it is required by the SEC and important facts regarding terminology and implementation.  This course will provide you with the foundation for understanding the needs of working with XBRL within your company.

 

 

Intro Video Transcript

Hello everyone and welcome in on today's session on XBRL. Today we're going to go through a bit of a primer session on what XBRL is? What it means to your companies and some of the elements you need to know to make sure that you are appropriately complying with XBRL standards. My name is Lynn Fountain, I am your presenter. I'm a subject matter expert in primarily the fields of internal audit risk manage, SOX, Enterprise Risk Management, Fraud, Governance and Compliance and I also has some first-hand experience with XBRL. I have over 30 years of experience and the accounting industry which includes financing, compliance and internal audit. I have been a past chief audit executive for two international companies and were recognized author, trainer and speaker. I regular speak on these different topics we have reviewed today. I have a new book coming out, it will be titled to raise a red flag, it is a book through the Institute of Internal Auditors foundation and it's a book in relationship to establishing fraud process for internal audit group, fraud binding process, I guess. I should say. My website is listed on this line as well as my gmail account someplace after you have viewed this session if you have any questions I always appreciate the feedback and I would be happy to address those questions for you. So with that i wanna talk a little bit about my XBRL experienced. Few years ago when XBRL was facing in I was doing some consulting for a real estate investment trust company, some people refer to it as a REIT and this stuff about XBRL came up and frankly I wasn't even sure what it was but basically I had some first-hand learning on XBRL because at the time a lot of the software that you can find out there now that helps to the translations was not available. So I basically had to learn the concepts of XBRL taxonomy that will talk about here in a little bit and translating the various aspects of the financial statements on the footnotes into the coating that was required. So I really had a lot of first can experience with XBRL in researching it. I completed the level 1 tagging they talk about and level 2 tanking 4133 as well as the 10 K tagging the end of the year for this particular company. We did later begin to work with tagging provider that had a more automated system so we'll talk about that as we go through this. so I had quite a learning experience with the SEC taxonomy. Now for my introductions viewpoint the SEC has mandated XBRL and what XBRL stands for is extensible Business Reporting Language that's what those acronyms stands for. It is to be applied to cut public companies primarily for their 10K and 10Q but there are also requirements that are stretching in to your a case you're 20 apps, you're 40 apps and we'll go through that here in a minute. The tagging process that you'll hear people referred to is basically a process by which you associate the various line items in your financial statements which primarily are your income statement, your balance sheet, your statement of Aquitaine and your statement cash flow that you associate those line items with particular taxonomy or trade or description of her lack of a better word that is supposed to be able to be translated and in essence provide information for your shareholders in your investors' that's what they mean by tagging. So the compliance with XBRL has really become almost as large of task as sarbanes-oxley was in the original years. It’s a lot more technical in regards to really understanding the aspects of what needs to be applied the application and the utilization really requires individuals to understand the technical aspects of the taxonomy. Now when I referred to taxonomy all described that in a minute but to give you kind of inference it's basically a tray of accounts that described the barest line on financial statement and as we all know asset there's numerous different types of assets. Well when I first started doing this a couple years ago the SEC had a taxonomy that they called her tree descriptions that was almost I think around 15,000 descriptions long. So it's not as easy as just picking up a set of tag, you had to be able to pick the appropriate tag that described your particular access. So that's why it really became very difficult. Also companies were told they would be susceptible to fines and penalties for not properly applying the concepts to their tagging process. Now they were given up phase-in period, that pace in period as I'm doing this webinar in 2015 has passed so companies now are really in the process of understanding that if their tag to proper and the SEC comes in and does some type of view they could be subject to fines and penalties. So internal auditors as well as external auditors really should be aware that XBRL will in fact compliance and testing. I will have a separate segment on XBRL that we'll talk a little bit about its relationship to sarbanes-oxley 404/ 302. So I invite you to look for that. A lot of companies in the initial processes of tagging did not feel that there would be a relation to just sarbanes-oxley but I'll explain a little bit how there is and then you can look to see how your company is addressing back to Sarbanes issue. So, objective of today is to go through XBRL basics. What is to give you some understanding of the terms and the tagging process? I'll talk a little bit about why we need XBRL. You know is another one of those things that government kind of dreamed up and we have to do a lot of process about it. Will talk about how it works, the different tagging levels you heard me refer to level 1, level 2 tagging race actually four different levels of tagging which all companies by now should have applied. I will go through a little bit about the terms and taxonomy and you know I know people kind of hate to go through terms in a particular webinar training but in this case with XBRL terms are very important because you really need to understand the aspects of those and how to reply to be able to get through the process. Now I also will say I mentioned earlier that when I first started doing this to 10 water software providers provided help and assistance there are a lot of different alternatives now. However it's incumbent upon the company to understand the terms and aspects because the tagging providers are doing you know what they feel is appropriate but it is incumbent upon you as a company to be able to validate their tagging with the right principles. So that's why it's important for you to understand the various terms and taxonomy. We will also talk a little bit about understanding the XBRL SEC Viewer, basically that is the if you think of our viewers like a Lancer a camera that you're looking through it’s basically what the investors will be able to look at to pull up the information that your company has associated with their expert tax and I'll give you also some tagging definition.

Learning Objectives

  • Discover XBRL Basics terms and concepts
  • Recognize why we need XBRL
  • Identify Tagging Levels
  • Define XBRL terms and taxonomy
  • Discover the XBRL SEC Viewer
  • Identify Tagging Definitions
Last updated/reviewed: February 11, 2018

8 Reviews (43 ratings)Reviews

5
Member's Profile
I really enjoyed the teaching style of the instructor. Even though XBRL is such a technical subject, she skillfully and patiently explained each term and concept.
5
Anonymous Author
Great intro to a subject I know very little about! Definetely recommended if you are considering going from a private company to a public one.
1
Anonymous Author
Should use financial statement excerpts and how they would be tagged. Slides were very sparse.
5
Member's Profile
Great overview of XBRL, just the right amount of info to get started.
5
Anonymous Author
Good basic overview and helpful glossary.
5
Anonymous Author
A good summary of XBRL
3
Anonymous Author
A lot of information!
5
Anonymous Author
Excellent overview!

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .

1 QuestionCourse Questions and Answers

Member's Profile

Participants - please note the title of this class. It is Basic to assist in understanding the terms and requirements. The course does not go into the process involved with tagging individual line items

Course Syllabus
INTRODUCTION AND OVERVIEW
XBRL Basics
  6:53XBRL Definitions
  9:29Why Do We Need XBRL
  8:16How does XBRL Work?
  10:04XBRL Tagging Levels
  5:30XBRL Terms
  10:08XBRL Viewer
  9:42Tagging Terms
  4:27Schema, Instance Document and Domain
  8:31Linkbase
  5:59General Terms, Tags, Dimensions
  8:43Extensions and Types of Labels
CONCLUSION
  5:47Summary
Continuous Play
  1:42:28XBRL (eXtensible Business Reporting Language) Basics
SUPPORTING MATERIALS
  PDFSlides: XBRL Basics
  PDFXBRL Basics Glossary/Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM