XBRL CalCPACouncil 20080628

Convergence*
Are you ready?
June 2008
*connectedthinking 
Discussion Topics
IFRS Overview
Convergence ‘defined’
Practical applications for CPAs
How to get ready
Appendixes:
• What the SEC is doing
• IASB and FASB Convergence
• Differences between IFRS & US GAAP
• Educational Resources
June 2008
PricewaterhouseCoopers 2
IFRS Developments – What’s the big deal
The Momentum Towards Global IFRS Adoption
More than 100 countries require or permit the use of International Financial Reporting Standards
(IFRSs), or are converging with the IASB’s standards.
Top 10 Global Capital
Markets
US US GAAP
Japan Converting to IFRS
UK IFRS
France IFRS
Canada Converting to IFRS
Germany IFRS
Hong Kong IFRS
Spain IFRS
Switzerland IFRS or US GAAP
Australia IFRS
Countries that require or permit IFRSs

Countries seeking convergence with the IASB on pursuing adoption of IFRSs
June 2008
What the Regulators are saying
“In 2008, the Division of Corporation Finance and the Office of

the Chief Accountant, led by Wayne Carnall and Julie Erhardt,
will formally propose to the Commission an updated "roadmap"
that lays out a schedule, and appropriate milestones on which
the schedule will be conditioned, for continuing the progress that
the United States is making in moving to accept IFRS in this
country.”
Christopher Cox, Chairman of the U.S. Securities and Exchange Commission

February 8, 2008
Remarks to the 'SEC Speaks in 2008' Program of the Practising Law Institute
June 2008
IFRS 1 – First Time Adoption of IFRS
• Application of IFRS 1 is a critical issue for companies making the
transition to IFRS.
• IFRS 1 requires an entity in its opening IFRS balance sheet to:

- Recognize all assets and liabilities required by IFRS
- Not recognize assets and liabilities not permitted by IFRS
- Classify all assets, liabilities and equity as required by IFRS;
and
- Measure all items in accordance with IFRS
EXCEPT where an exemption or exception allows or

requires otherwise
June 2008
IFRS 1 – First Time Adoption of IFRS
• Accounting policies based on current version of IFRS at the
reporting date
• Retrospective application to opening IFRS balance sheet and
all periods, subject to
• 14 optional exemptions; and
• 5 mandatory exceptions
• Earlier versions of the same IFRS are not used
• Transition guidance in IFRS not used by first time adopters

unless specifically directed
June 2008
Key IFRS – US GAAP Differences
Framework
Fundamentally, the frameworks and concepts underlying both IFRS and US
GAAP are similar
Principles vs. Rules

IFRS built under principles based methodology; approximately 2,500 pages
US GAAP is more prescriptive and rules-based addressing specific industries
and types of transactions in many areas; approximately 25,000 pages
Fair value accounting

Greater use of fair value under IFRS than US GAAP (e.g., greater use of
discounting, requirement to bifurcate compound instruments, option to revalue
property, plant & equipment, investment property and intangibles)
June 2008
Key Differences Between IFRS and US GAAP
• Consolidation • Debt/equity classification

• Revenue recognition • Hedging qualification
(e.g., VSOE, percentage • Employee stock
of completion) compensation
• R&D capitalization • LIFO
• Impairments • Tax consequences of these
differences
• Securitizations/asset
• Income tax accounting
derecognition
• Provisions
June 2008
How many IFRS filers in 2007?
Market Considerations
• Additional flexibility in capital raising initiatives

• Cross border acquisition and divesture activities may require
IFRS knowledge
• Increased investor interest; effective market communications
• Benchmarking with peers
• Take steps to influence regulators and tax authorities around
the impact and acceptance of IFRS
• Being seen as a front runner in the adoption of IFRS in the US
• Certain US companies are starting now; do you want to be
behind the curve?
June 2008
How do you define convergence?
IFRS GAAP
convergence
US GAAP
Local Territory Statutory GAAP
Local Territory Statistical
Convergence
Local Territory Tax Federal
Local Territory Tax State & Local
Local Territory Performance
Others?
June 2008
Dutch Taxonomy Project –
http://www.xbrl-ntp.nl/english
“The Dutch government intends to

reduce the administrative burden of
businesses 25 percent”
June 2008
Australian SBR
“The benefits to business are

ultimately estimated rise to $795M per
year on an ongoing basis”
June 2008
The Adoption of XBRL is a Reality
A sampling of projects:
Country Organization Program/Application
Japan Tokyo Stock Exchange TSE Registrant Financial
(TSE), NTO, BoJ Report Filings
United States Securities Exchange Com XBRL Voluntary Filer Program
mission
FFIEC/FDIC/FRS/OCC Call Report Modernization
UK Companies House Accounts Filings
HM Revenue and Customs Company Tax Filings
China China Securities Interactive Data Filing for
Regulatory Commission Financial Statements
Korea Financial Supervisory Mandatory Filing for all
Service/DART registrants
Australia Australian Treasurer Standard business reporting
program – Business Centric
Netherlands Min of Finance/Justice
Model
Singapore ACRA Mandatory Filing for all
registrants
June 2008
June 2008
IFRS XBRL Taxonomy
Currently available at http://www.iasb.org/xbrl

Supports a range of languages:
• Arabic
• Dutch
• English
• French
• German
• Hungarian
• Italian
• Portuguese
• Spanish
being prepared: Polish, Hebrew, Chinese, etc.
June 2008
5
What is XBRL?
International Supply Chain Standardization effort

Relevant to internal and external business information
Mandated by economics as it enables significant benefits
Mandated by regulators (including SEC)
Replaces manual process steps with automation
Applicable to business information, related business rules,
formulas, controls, processes, resources, etc.
http://www.xbrl.org and http://xbrl.us
‘Bar Code’ for business information
June 2008
Here is the problem – a simple Income
Statement
I will give $50 to anyone who can tell me the following:
The name of the company

The period of the report
The currency used
The accounting principles used
If the accounts are audited or not
The exchange on which the company is traded
June 2008
How long does it take for you to……..
Aggregate note disclosure information from subsidiaries?

Validate the math within company financial statements?
Find the disclosures related to specific concepts in F/S?
Identify relevant FASB standards and Reg SX regulations?
Compare performance with others?
Share analytical formulas/models with others?
Obtain data from a wide range of disparate ERP systems?
Validate and analyze data?
If your answer is more than a few seconds, then XBRL can help
June 2008
Recent Headlines & White Papers
Motley Fool –
The most important shareholder initiative in a decade (March 24th)
Gartner - XBRL Will Enhance Corporate Disclosure and
Corporate Performance Management (April 23rd)
MSN Money – A Revolution for the small investor (April 30th)
Treasury & Risk Magazine – Time to Speak the Same Language
(April)
FEI Magazine – XBRL: Not Just for External Reporting (May)
SEC Proposed Rule to Mandate XBRL (May 30th)
June 2008
The business reporting supply chain
Transaction XBRL Global XBRL External Reporting

Layer Ledger
Internal External Investment,

Processes Business Economic
Business Business Lending,
Operations Policymaking
Reporting Reporting Regulation
SCOA US GAAP
Payables Ledger IFRS
Receivables Ledger GRI G3
Fixed Asset Ledger Statutory
Others MD&A
June 2008
XBRL is More Than Just Tagging Business
Information
• Multi-dimensional
business and financial Definitions
data representations Related to Liquid Assets
Presentation
Cash & Cash Equivalents References
GAAP I.2.(a)
• Flexibility of business CoA 1100
reporting vocabularies XBRL
(i.e. taxonomies) Label
Cash in Bank <cash>
“200”
• Mathematical
relationships between Calculations Formulas
concepts Cash = Currency + Deposits Cash ≥ 0
Contexts
US $X
FY2009
• Flexibility about how Budgeted
to present information
to users
June 2008
What does XBRL Look Like?
What does XBRL look like? What does CALCPA.org look like?
• Example here Example here
How does it make your life better?

• Example here – how to find disclosures
• Example here – how to consolidate/aggregate info
• Example here – how to access data?
• Example here – how to map XBRL GL to your ERP
• Case Study here – how to enhance process agility
• Case Study here – how to enhance data quality &
analysis
June 2008
XBRL US GAAP Taxonomy
Explicit References
What is the FASB Standard for the current deferred tax assets?
June 2008
PricewaterhouseCoopers US GAAP Taxonomies are available here 23
SEC Proposed Rule to Mandate XBRL
How – via a new exhibit supplemental to financial

statements
What - The financial statement footnotes (as block text) and
financial statement schedules in first year. After the first
year, filer would be required to tag the detailed disclosures
within the footnotes and schedules. This would apply to
annual and quarterly reports, as well as registration
statements containing financial statements for such fiscal
periods.
See http://www.sec.gov for details
Comments due on August 1, 2008
June 2008
SEC Proposed Rule to Mandate XBRL
When - beginning with fiscal periods ending on or after
December 15, 2008.
• In year 1, the proposed rules would apply only to domestic and foreign
large accelerated filers that use U.S. GAAP and have a worldwide public
float above $5 billion, approximately 500 companies.
• In year 2, all other domestic and foreign large accelerated filers using U.S.
GAAP.
• In year 3, all remaining filers using U.S. GAAP, including smaller reporting
companies, and all foreign private issuers that prepare their financial
statements in accordance with IFRS as issued by the IASB
• A 30 day grace period would be permitted for the first interactive data
exhibit of each filer
June 2008
What do companies need?
Software – embedded in your existing tools here and here
Taxonomies – basic reporting concepts

• US GAAP XBRL Taxonomies
• IFRS GAAP Taxonomies
• Proxy Taxonomy
• Others
Understanding/Awareness – what is new

• Processes
• Case Studies
They do not need to understand the XBRL technology

June 2008
Forms of XBRL Adoption
• Outsourcing – via automated tagging and SAAS workflow
offerings (http://www.tryxbrl.com as an example)
• High level – Bolt-on
- XBRL can be quickly adopted by companies at the “highest”
reporting level (i.e. consolidated) solely for purposes of
complying with regulatory requirements. However, its benefits
for business reporting process enhancements are not fully
realized.
• Embedded - XBRL & XBRL Global Ledger
- XBRL Global Ledger implementation requires more time and
better planning.
- Requires companies to assess information needs and provides
an opportunity to eliminate inefficiencies in current reporting
practices.
- Maximizes benefits of XBRL to preparers and internal and
external users of financial and non-financial information.
June 2008
Typical Reporting Process – Bolt-on XBRL to prepared report
Supplemental Data
ERP
10-Q in 10-Q in
ERP HFM Word Word
ERP
Review Review
and Check and Check
10-Q in
Word Edgar
June 2008
Streamlined Reporting Process – Embedded in Report Writer
Wacoal
Fujitsu
ERP
HFM 10-Q in
ERP XBRL
XBRL Tagged
ERP
Supplemental Data Edgar

XBRL Tagged
June 2008
Practical applications for CPAs
An Internet standard for business information
Accessing data from disparate ledgers, sub-ledgers, transaction ledgers
- information useful in tax returns, elimination entries, M-3 reconciliations,
internal audits, performance reports, budgets, projections, etc.
Analyzing data across a wide range of software applications
- any type of analytics, benchmarking, budgeting & planning, control
design, process design, validation rules, etc.
Reporting
- report generation, visualization, management reports, BI dashboards,
Business Performance Management
Knowledge Sharing
- GAAP, GAAS, Tax, Company Policies, SME’s, Training, etc.
- Analytics, benchmarking data, controls, business rules, etc.
June 2008
What is at stake?
June 2008
How to get your members ready
What you can do
Get the message out – get ready for convergence
Make members aware of short term implications/opportunities
Provide training on IFRS & XBRL implications
Relate to the individual CPA working practices
Increase knowledge of relevant projects, taxonomies, and tools
Organize members to engage in market collaboration efforts:
IFRS and US GAAP Taxonomy Project efforts
Industry, Performance, Sustainability efforts
Expose members to tool training/enhancements
June 2008
Convergence*
Are you ready?
Any Questions??
*connectedthinking 
What the SEC is doing
June 2008
Chairman Christopher Cox of the SEC
“I'd like to invite every public company, [especially] those companies not yet
involved in our voluntary filing program, to consider whether they should
obtain a copy of this new GAAP set of data tags ... and its supporting
documentation and consider using it alongside your current process as you
prepare your calendar 2007 filings or your filings for the fourth quarter of
2007.”
Will XBRL be mandated?
“This is the recommendation that we will be seeking from all of the offices
within the Spring of next year.”
From the “Major Announcement About

Interactive Data in Financial Reporting,
Tuesday, September 25, 2007”
June 2008
Proposed Rule to mandate XBRL
May 30th, 2008

Please See http://www.sec.gov/rules/proposed/2008/33-8924.pdf
for issuance of proposed rule to mandate XBRL for public
registrants
June 2008
SEC Proposed Rule to Mandate XBRL – How/What
How – via a new exhibit supplemental to financial statements

What - The financial statement footnotes (as block text) and financial
statement schedules in first year. After the first year, filer would be
required to tag the detailed disclosures within the footnotes and
schedules. This would apply to annual and quarterly reports, as well as
registration statements containing financial statements for such fiscal
periods.
60 day public comment period.
June 2008
SEC Proposed Rule to Mandate XBRL – When
When - beginning with fiscal periods ending on or after December 15,

2008.
• In year 1, the proposed rules would apply only to domestic and
foreign large accelerated filers that use U.S. GAAP and have a
worldwide public float above $5 billion, approximately 500 companies.
• In year 2, all other domestic and foreign large accelerated filers using
U.S. GAAP.
• In year 3, all remaining filers using U.S. GAAP, including smaller
reporting companies, and all foreign private issuers that prepare their
financial statements in accordance with IFRS as issued by the IASB.
June 2008
SEC Proposed Rule to Mandate XBRL – Submission

Format
Interactive data would be required with a company's annual
and quarterly reports, transition reports, and Securities Act
registration statements
Interactive data would also be required to be posted on the
company’s corporate web site, if it maintains one
June 2008
SEC Proposed Rule to Mandate XBRL – Submission

Timing
Interactive data would be required to be provided to the
Commission, and posted on company websites, at the same
time as the related report or registration statement, with two
exceptions.
• A 30 day grace period would be permitted for the first
interactive data exhibit of each filer,
• A 30 day grace period would be permitted for the first
interactive data exhibit that is required to include the
footnotes and schedules tagged in detail.
June 2008
SEC Proposed Rule to Mandate XBRL – Liability and

Non-Compliance
Filers that do not provide or post required interactive data on
the date required would be deemed not current with their
Exchange Act reports.
Data in the interactive data file submitted to us would be
subject to liability similar to that of the voluntary program and,
as a result, would be subject to only limited liability.
June 2008
What do companies need?

Software – embedded in your existing tools here and here
Taxonomies – basic reporting concepts

• US GAAP XBRL Taxonomies
• IFRS GAAP Taxonomies
• Proxy Taxonomy
• Others
Understanding/Awareness – what is new

• Processes
• Case Studies
You do not need to understand the XBRL technologyJune 2008

Data Standard vs Data Standardization
• XBRL Taxonomies DO NOT create a standard reporting

template
• XBRL Taxonomies
- Common disclosure concepts
- Represent a wide range of disclosure concepts
• Statutory, financial, tax, statistical, non-financial, etc.
- Extensible to represent unique company specific
concepts
- Both public and private concepts
- More than just defining concepts
June 2008
Forms of XBRL Adoption

• Outsourcing – via automated tagging and SAAS workflow
offerings (http://www.tryxbrl.com as an example)
• High level – Bolt-on
- XBRL can be quickly adopted by companies at the “highest”
reporting level (i.e. consolidated) solely for purposes of
complying with regulatory requirements. However, its benefits
for business reporting process enhancements are not fully
realized.
• Embedded - XBRL & XBRL Global Ledger
- XBRL Global Ledger implementation requires more time and
better planning.
- Requires companies to assess information needs and provides
an opportunity to eliminate inefficiencies in current reporting
practices.
- Maximizes benefits of XBRL to preparers and internal and
external users of financial and non-financial information.
June 2008
What You Can Do Now

• Use available resources to get smart on XBRL (see appendix for
resources)
• Develop plan for assessment/implementation
• Consider Relevant Taxonomies
- Financial
• US GAAP
• IFRS
- Non-Financial
• Proxy
• Enhanced Business Reporting Consortium
• Global Reporting Initiative
June 2008
SEC - Other XBRL Related Activities
$49m EDGAR Modernization project (XBRL Compliant)

$5.5m US GAAP XBRL Taxonomy Enhancement Project available for review here:
http://usgaap.xbrl.us
XBRL viewer released on December 5th 2006 http://www.sec.gov/spotlight/xbrl.htm
Executive Compensation tool released on December 5 th 2007
http://www.sec.gov/news/press/2007/2007-268.htm
New SEC Office of Interactive Disclosure created
Advisory Committee on Improvements to Financial Reporting includes Delivering
Financial Information Subcommittee
Executive compensation XBRL project launched in December 2007
Proxy XBRL Taxonomy also available for review: https://myservice.broadridge.com/XBRL
‘Round Table’ discussions (June 06, Oct 06, March 07)
SEC XBRL Spotlight site http://www.sec.gov/spotlight/xbrl.htm
XBRL US GAAP Taxonomies and Supporting Documentation
http://www.xbrl.us/Pages/US-GAAP.aspx
June 2008
IASB and FASB Convergence
June 2008
Convergence of IFRS and US GAAP
• Overall vision and objective

• Short-term convergence
• Long-term convergence
June 2008
Overall Vision and Objective
• Objective is to create one global set of high-quality

standards
• Convergence goes beyond US GAAP and IFRS
• “Convergence means change. We must not have
convergence for the sake of it”—Bob Herz—
Chairman FASB
• Convergence is a two-way street
June 2008
FASB and IASB Memorandum of Understanding
(February
Roadmap for 2006)
convergence between IFRS and US GAAP
between 2006—2008
General guidelines are as follows
• Convergence is best achieved through the development
of high quality standards over time
• Differences between standards in need of improvement
should not be eliminated; new standards should be
developed instead
• Weaker standards should be replaced with stronger
standards
June 2008
Convergence—Accounting standard setters

FASB and IASB
Overall strategy
• Short-term convergence project
- High-quality solution achievable in the short-term
Coordination of work programs—joint projects
• Business combinations
• Revenue recognition
• Conceptual framework
• Consolidation
• Fair value measurements
June 2008
Differences between IFRS & US GAAP
Key Differences Between IFRS and US GAAP
• Consolidation • Debt/equity classification

• Revenue recognition • Hedging qualification
(e.g., VSOE, percentage • Employee stock
of completion) compensation
• R&D capitalization • LIFO
• Impairments • Tax consequences of these
differences
• Securitizations/asset
• Income tax accounting
derecognition
• Provisions
June 2008
Key IFRS – US GAAP differences
Financial instruments
IFRS US GAAP
Preferred equity Depending on the terms, instrument has to be Temporary equity (or mezzanine equity) classification is allowed
securities bifurcated between financial liability and equity. without bifurcation of financial liability component.
Convertible debt Split accounting is compulsory No split accounting unless beneficial conversion feature
Interest expense is accreted using effective interest

rate method which is based on market interest rate for Interest is accounted for at nominal interest rate
a similar bond without conversion features.
Securitization / A control test is performed to see whether securitization Derecognition is based primarily on transfer of control.
Derecognition of vehicle needs to be consolidated.
The derecognition model is governed by three key tests:
financial assets Derecognition is based primarily on evaluation of legal isolation of the transferred asset
transfer of risks and rewards and secondly on transfer
of control. ability of transferee to pledge or sell the asset
A transfer of risks and rewards can occur in one of two no right or obligation to repurchase
ways:
Transfer of contractual rights.
Pass-through arrangement.
Once derecognition is confirmed, entity is required to
analyze whether full or partial derecognition has
occurred.
Hedging Generally similar principles, however, numerous differences in detailed application. IFRS offers more flexibility in terms of
hedge design, however, fewer scope exemptions, stricter documentation requirements and effectiveness assessment
criteria.
June 2008
Impairment of long-lived assets
IFRS US GAAP
If impairment is indicated, a one step approach is used

Impairment of PP&E, to determine the impairment based on discounted cash
A two-step impairment test approach is used to determine
impairment:
cash-generating flows. Assets are written down to recoverable amount
Step 1: Compare carrying amount with undiscounted cash
units and finite-lived which is higher of:
flows expected from the asset.
intangible assets fair value less costs to sell or
Step 2: If carrying amount is higher, the impairment loss is
value in use based on discounted cash flows. measured as the difference between the carrying amount and
fair value.
Reversal of An impairment loss relating to an intangible asset other Reversal of impairment losses is not permitted under US GAAP.
than goodwill may be reversed if certain criteria are met.
impairment losses
Impairment of Goodwill is assigned to one Goodwill is assigned to an entity’s reporting unit (i.e., an
or more cash-generating units (cannot be higher than operating segment) or one level below (i.e., a component). Two-
goodwill an operating segment). One step approach step approach. 1 - Fair value vs. carrying value
(comparison between recoverable amount and carrying of reporting unit; 2- implied FV of GW vs. carrying amount of
amount). goodwill
June 2008
Intangible assets - Development costs
IFRS US GAAP
General guidance Development costs Development costs are expensed
must be capitalized
if certain criteria
are met
Internal use software Same general guidance Costs incurred during the preliminary project stage
are expensed. Costs relating to the application
development stage are capitalized. Training costs
are expensed.
Software to be sold or Same general guidance Costs incurred to establish the technological
otherwise marketed feasibility of computer software are expensed when
incurred
June 2008
Stock-based compensation
IFRS US GAAP
Grant date The date when the entity and another party (including Date an employee begins to benefit from, or adversely affected by,
employees) agree to the arrangement. If arrangement subsequent changes in the price of the employer’s equity shares
is subject to approval, grant date is when approval is
obtained
Graded-vesting Each installment of a graded vesting award is treated as a Provides an accounting policy choice for awards with graded vesting
separate share option grant schedule and only service conditions to be recognized either on a
options straight line basis or treat each installment separately
Other recognition Fair value of the award recognized over the period to which Fair value of the award is recognized over the requisite service period
employees’ service relate
criteria
Payroll taxes and social charges are recorded in each period Payroll taxes and social charges on employee stock based
Social charges and as the related compensation expense associated with a compensation are recognized on the date of the event triggering the
payroll taxes share-based payment transaction is recognized in the income measurement and payment of the tax to the taxing authority (generally
statement the exercise date)
June 2008
Provisions
IFRS US GAAP
Probable vs. more Under IFRS, the recognition criteria for provisions is Higher recognition threshold under US GAAP for provisions,
more likely than not which is considered as a probability generally 75% or over.
likely than not of greater than 50%
Recognize when virtually certain, not to exceed amount

of provision
Recognize when probable (>75%)
Reimbursements
A provision is discounted based on estimated cash flows using a pre-tax rate
reflecting the risks specific to the liability.
US GAAP requires discounting only if there are fixed cash flows
Discounting The adjustment of provisions due to the passage of time is recorded as interest and uses a credit-adjusted, risk-free rate.
expense, not operating expense.
The accretion of interest is recorded as operating expense.
Range of estimates If a range of estimates is present in measuring a In such a case, US GAAP requires use of the lowest point in the
provision, IFRS requires use of the mid-point of the range.
range
June 2008
Income tax
IFRS US GAAP
Intercompany transfers Taxes paid by sellers on profits arising from intercompany Taxes paid by sellers on profits arising from intercompany asset
asset transfers are not deferred. Buyer’s tax rate is used to transfers should be deferred using seller’s tax rate. The buyer is
of assets remaining in calculate deferred tax asset in consolidated financial prohibited from recognizing DTA resulting from the tax basis
the group statements. adjustments of transferred asset. Par. 9(e) will be eliminated in the
convergence project.
(FAS 109 par. 9e)
Prohibits recognition of DTA or DTL for differences related to assets

Foreign non-monetary No such exception under IAS 12. Deferred tax asset or
and liabilities that, are remeasured from the local currency into the
liability is calculated on differences resulting from
Assets and Liabilities remeasurement from local currency to functional currency.
functional currency using historical exchange rates and that result
from (i) changes in exchange rates or (ii) indexing for tax purposes.
(FAS 109 par. 9f) Par. 9(f) will be eliminated in the convergence project.
Uncertain tax positions No specific guidance in IAS12. Should reflect amount Two step approach:
expected to be paid/received. MLTN recognition model is an
MLTN recognition step
acceptable approach.
Cumulative probability methodology for measurement step.
Probability weighted average approach, or single best
estimate/most likely outcome are acceptable measurement
models. Extensive disclosures required.
Limited disclosure requirements.
Deferred tax on share Deferred tax is remeasured to intrinsic value of vested Changes in the stock price do not impact the deferred tax asset or
awards each reporting period. Shortfalls are recognized result in any adjustments prior to settlement or expiration.
based payments through PL; windfalls in equity. There is no concept of
offsetting pools.
June 2008
Educational Resources
Resources
Securities and Exchange Commission Site:
• Spotlight on XBRL: http://www.sec.gov/spotlight/xbrl.htm
• XBRL Submissions: http://www.sec.gov/Archives/edgar/xbrl.html
• XBRL Interactive Viewing tool: http://www.sec.gov/spotlight/xbrl/xbrlwebapp.htm
• For specific questions about XBRL and SEC VFP, please contact XBRL US, Inc. at 212-362-
7630.
XBRL - US Site:
• http://www.xbrl.us See Webinar Archive under the ‘Events’ tab
• Case Studies http://www.xbrl.us/Documents/XBRL_all_case_studies.pdf
• State of the Art Reporting (Four five-minute videos)
• http://www.smartpros.com/xbrldemos/
XBRL International Web Site:
• Tools: http://www.xbrl.org/tools
• Products and Services: http://www.xbrl.org/productsandservices/
• Discussion Groups: http://www.xbrl.org/GroupsPublic/
• Project White Papers: http://www.xbrl.org/ProjectDetails/
• General Education: http://www.xbrl.org/EducationAndTraining/
Others:
• “XBRL for Dummies”: http://www.xbrlfordummies.com
• IMA Suggested Reading: http://www.imanet.org/research_technology_reading.asp
• CFO.com XBRL site http://www.cfo.com/guides/guide.cfm/8310234
June 2008
Suggested Reading
Global Ledger Practices Guide for Study http://www.gl.iphix.net/
ROI on XBRL: http://www.aicpa.org/pubs/jofa/jun2007/stantial.htm
Hitachi Blogs:
• http://blog.hitachixbrl.com/2007/01/16/the-entity-problem/
• http://blog.hitachixbrl.com/2007/01/30/relationships-matter/
• http://blog.hitachixbrl.com/2007/02/13/in-pursuit-of-process/
• http://blog.hitachixbrl.com/2007/01/09/master-data-management-the-xbrl-way/
• http://blog.hitachixbrl.com/2006/12/08/adaptation-or-evolution-what-is-your-xbrl-strategy/
XBRL Ledger white paper: http://www.imanet.org/pdf/8xbrl.pdf
FFIEC White Paper: http://www.xbrl.org/us/us/FFIEC%20White%20Paper%2002Feb2006.pdf
June 2008
Online demonstrations
Microsoft Investor Central
• http://www.microsoft.com/msft/IC/default.aspx
Executive Compensation Widget
• http://www.ibanknet.com/widgets/index.shtml
Edgar-Online IMetrix
• http://www.edgar-online.com
• http://www.edgar-online.com/products/imetrix.aspx
Rivet Software Crossfire
• http://www.rivetsoftware.com/content/index.cfm?
fuseaction=showContent&contentID=195&navID=166
• http://www.rivetsoftware.com/resources/files/CrossfireLaunch/
CrossfireAnalystReportCreation.htm
Google OneBox
• http://www.iphix.net/resources/nunavut.htm
June 2008
An Article to Read
“Speeding toward Convergence: Changes to Come Rapidly

for Accounting Profession”
Allison M Henry
Pennsylvania CPA Journal
June 2008
Typical Reporting Process – Bolt-on XBRL to prepared
report
Supplemental Data
ERP
10-Q in 10-Q in
ERP HFM Word Word
ERP
Review Review
and Check and Check
10-Q in
Word Edgar
June 2008
Streamlined Reporting Process – Embedded in Report
Writer
ERP
HFM 10-Q in
ERP XBRL
XBRL Tagged
ERP
Supplemental Data Edgar

XBRL Tagged
June 2008

XBRL CalCPACouncil 20080628

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XBRL CalCPACouncil 20080628

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Convergence*

Are you ready?

Countries that require or permit IFRSs

“In 2008, the Division of Corporation Finance and the Office of

Christopher Cox, Chairman of the U.S. Securities and Exchange Commission

• IFRS 1 requires an entity in its opening IFRS balance sheet to:

EXCEPT where an exemption or exception allows or

• Transition guidance in IFRS not used by first time adopters

Principles vs. Rules

Fair value accounting

• Consolidation • Debt/equity classification

• Additional flexibility in capital raising initiatives

“The Dutch government intends to

“The benefits to business are

Currently available at http://www.iasb.org/xbrl

International Supply Chain Standardization effort

The name of the company

Aggregate note disclosure information from subsidiaries?

Transaction XBRL Global XBRL External Reporting

Internal External Investment,

How does it make your life better?

How – via a new exhibit supplemental to financial

Taxonomies – basic reporting concepts

Understanding/Awareness – what is new

They do not need to understand the XBRL technology

Supplemental Data Edgar

Chairman Christopher Cox of the SEC

From the “Major Announcement About

Proposed Rule to mandate XBRL

May 30th, 2008

SEC Proposed Rule to Mandate XBRL – How/What

How – via a new exhibit supplemental to financial statements

60 day public comment period.

SEC Proposed Rule to Mandate XBRL – When

When - beginning with fiscal periods ending on or after December 15,

SEC Proposed Rule to Mandate XBRL – Submission

SEC Proposed Rule to Mandate XBRL – Submission

SEC Proposed Rule to Mandate XBRL – Liability and

What do companies need?

Taxonomies – basic reporting concepts

Understanding/Awareness – what is new

You do not need to understand the XBRL technologyJune 2008

Data Standard vs Data Standardization

• XBRL Taxonomies DO NOT create a standard reporting

Forms of XBRL Adoption

What You Can Do Now

SEC - Other XBRL Related Activities

$49m EDGAR Modernization project (XBRL Compliant)

Convergence of IFRS and US GAAP

• Overall vision and objective

Overall Vision and Objective

• Objective is to create one global set of high-quality

FASB and IASB Memorandum of Understanding

Convergence—Accounting standard setters

• Consolidation • Debt/equity classification

Interest expense is accreted using effective interest

If impairment is indicated, a one step approach is used

Recognize when virtually certain, not to exceed amount

The accretion of interest is recorded as operating expense.

Prohibits recognition of DTA or DTL for differences related to assets

“Speeding toward Convergence: Changes to Come Rapidly

Supplemental Data Edgar

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