XBRL Fundamentals

XBRL Fundamentals

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• Extending XML to XBRL• Introduction to XBRL

documents• XBRL Taxonomy

– Schema– Linkbases

• Building taxonomy

In this session…

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EXTENDING XML TO XBRL

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XML – eXtensible Mark-up Language

XML is a key Internet standard for transmission and interoperability

• Electronic transmission is newer than electronic storage• With the growth of the Internet, transmission of data is

exploding• XML uses "tags" to define data and is self-descriptive• XML has been developed by w3 consortium• Designed to describe, create, structure, store and

transmit information• Processing gets shifted from applications to data• Data stored in hierarchy• Data stored in simple easy to use xml files

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Extending XML - XBRL

• XBRL combines hierarchical xml data with relationships and references between the data points.

• It uses Xlink technology of linking xml files

• It links the data xml files with various other files containing definitions, presentation, calculation, references relationships

• XBRL data files are a set of xml and xsd files.

DataData with tags

hierarchy

Data with tags,Hierarchy &

Relationships

Primitive Data Formats

XML Data Formats XBRL Data Formats

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XML XBRL Example

The tags are not fixed and standard.

Tags defined in the schema document are standard for taxonomy.

Com A: Net SalesCom B: Net turnover

Taxonomy : SalesRevenueNet

XML defines hierarchy of the tags, which needs to be processed by the application

XBRL defines relationships using a standard approach

<GrossProfit> <TotalRevenue/> <TotalExpenditure/></GrossProfit>

GrossProfit TotalRevenue TotalExpenditure

1 1-1

XML is validated with a single xsd file for data type and occurrence validations.

XBRL data files are validated with xml linkbase files & schema files

Total Expenditure is to be subtracted from Total Revenue. This is build at the software level

Software automatically understands that Total Expenditure needs to be subtracted from Total Revenue

XML data files have no standard format

XBRL data files have a standard format

User defined formats Standard format for defining context units and facts.

Express single Relations Express Multiple Relations Only presentation relationship

Other additional relationships

XML Vs. XBRL

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XBRL DOCUMENTS

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XBRL Taxonomy & Instance Architecture

XBRL Data

XBRL Data Definition

XBRL Data Relationships

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ABC Company Ltd. Rs.(000’s)

Balance Sheet as at 31-03-2009 A Segment

B Segment

C Segment

Group

Fixed assets 30 35 33 98

Investments 18 22 20 60

Deferred tax assets 7 8 12 27

Current assets:

Cash and cash equivalents 13 16 23 52

Sundry debtors 17 18 18 53

Inventories* 20 21 19 60

Total current assets 50 55 60 165

Total assets 105 120 125 350

* Includes inventories on acquisition of textile segment

TaxonomyInstance

document

XBRL documents

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• Recommendation – 2003-12-31 corrected Errata – 2008• Some technical files

• xbrl-instance-2003-12-31.xsd• xbrl-linkbase-2003-12-31.xsd• xl-2003-12-31.xsd• xlink – 2003-12-31.xsd

XBRL 2.1 Specification

• More than 200 test sets to verify the applications process the taxonomy correctly

Conformance suite

• Financial reporting taxonomy architecture• Financial reporting instance standards• Guidelines on best reporting practices• Both have different conformance suites

FRTA and FRIS

Overview of XBRL Specifications

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• Recommendation – 2006-09-18• Modular extension of 2.1 where in dimensions are used• Some technical files• xbrldt-2005.xsd• xbrldi-2006.xsd

Dimension specification

• Recommendation – 2009• Modular extension of 2.1 where in formulae are used• Number of technical files

Formula specification

Overview of XBRL Specifications

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TAXONOMY

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Taxonomy word is derived from:tassein–classificationnomos–law/science

Taxonomy means “Science of Classification”

• In XBRL, Taxonomy is “systematic classification of business and financial terms”

Taxonomy

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Role of taxonomies

Standardization

Facilitates Understanding of the Data System

Enables Reuse, Data Exchange and Comparisons

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XBRL Taxonomy is made up of –

Schema Dictionary of business and financial terms,

along with their XBRL properties

Linkbases Interrelationships amongst the terms

defined in the schema

Taxonomy Components

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• Similar to XML schema• File with .xsd extension• Contains attributes describing the

whole document• Contains the definition of financial

terms and their attributes• Refers to the Linkbases

Schema

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Schema

Namespace– Purpose of declaring Namespace– Namespace Prefix

Indian GAAP Taxonomy• Namespace : http://xbrl.in/in-gaap/2009-06-30• Prefix : in-gaap

SEBI MF Taxonomy• Namespace : http://xbrl.in/sebi/2010-02-20• Prefix : sebi

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MeaningAn element is a business or a financial concept which is defined according to XBRL specifications.

Example– Data points reported in Financial Statements– Data points reported in Notes to Accounts

XBRLElement

Financial Reporting Concept

Basic Attributes

RelationshipTo other

Elements & Information

Schema : Element

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element name• According to LC3 Rules• Preferable to have Style Guide• Some of the principles that should be followed while

defining the elements

element id• Element id and element name should be unique• Best practice according to FRTA is to use prefix_name

Concept Element Name Element ID

Loans and Advances LoansAdvances frs-gp_LoansAdvances

Short Term Borrowings ShortTermBorrowings us-gaap_ShortTermBorrowings

Cash and Cash Equivalents CashCashEquivalents ifrs-gp_CashCashEquivalents

Schema : Element

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Schema: Element Attributes

Attributes• Data Type• Period Type• Balance Type• Abstract• Nillable• Substitution Group

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Element Attribute :Data Type

Data value that is allowed for element defined

–Monetary–String–Shares–Decimal–Pure–Other

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Data Types – Few examples

Data type Examples

Monetary Sales

Current liabilities

Reserves

String Name of employee

Inventory policy

Shares Basic number of shares outstanding

Shares held by managing director

Decimal Office floor area

Number of employees

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Element Attribute : Period Type

Attribute that specifies whether anelements is measured “As on a point of time” or “Over a period of time”

• Instant• Duration

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Element Attribute : Balance Type

Type of balance that is applicable to the

Monetary item –Debit–Credit

Exceptions

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Element Attribute : Abstract

Explains whether element will hold value in the instance documents

– ‘abstract = false’– ‘abstract = true’

Usage

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Element Attribute : Nillable

Determines whether the element is mandatory to be reported or not

– ‘nillable = false’– ‘nillable = true’

By default, nillable is defined as ‘true’

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Element Attribute : Substitution Group

• Item– Element representing single fact

• Tuple– Element representing multiple facts

• Dimension– Element representing dimensional information

• Hypercube– Element grouping dimensional information

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Schema: Element Attributes

• Defines concepts uniquely in the way system can interpret

Element name and element ID

• Values expected for concepts (monetary, percentage, shares etc.)

Data type

• When the concept is measured – as at a point of time or over a period of time

Period type

• Determines whether the element is mandatory

Nillable

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Schema: Element Attributes

• Accounting balance of concept i.e. debit or credit

Balance type

• Determines whether an element can or cannot hold value in instance document

Abstract

• Classes as defined by specification to enable system understand, process and validate information.

Substitution group

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Schema

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For the “Element :Outstanding Expenses”, what would be the value of the following attributes?

DataType : _____ (String, Shares, Monetary)

SubsitutionGroup : _____ (Item, Tuple)

BalanceType : _____ (Debit, Credit)

periodType : _____ (Instant, Duration)

Nillable : _____ (True, False)

Abstract : _____ (True, False)

Quiz Time!!!

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For the “Element :Number of equity shares outstanding”, what would be the value of the following attributes?

DataType : _____ (String, Shares, Monetary)

SubsitutionGroup : _____ (Item, Tuple)

BalanceType : _____ (Debit, Credit)

periodType : _____ (Instant, Duration)

Nillable : _____ (True, False)

Abstract : _____ (True, False)

Quiz Time!!!

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For the “Element :Interest expense”, what would be the value of the following attributes?

DataType : _____ (String, Shares, Monetary)

SubsitutionGroup : _____ (Item, Tuple)

BalanceType : _____ (Debit, Credit)

periodType : _____ (Instant, Duration)

Nillable : _____ (True, False)

Abstract : _____ (True, False)

Quiz Time!!!

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State whether the following statements are true or false

1. Earnings per share is normally defined as having share item data type

2. Number of employees in company is defined as abstract=false

3. Element name consists of a prefix followed by an underscore followed by element id.

4. Accumulated depreciation will have period type as duration

Quiz Time!!!

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Exercise

For the given sample set of data, define the elements and their XBRL properties in the schema file

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LINKBASES

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Linkbases are taxonomy components whichdefine relationships between elements and

linkthem to external resources

• Interrelationships between elements• References to regulatory material• Human readable definitions of elements• Six types of linkbases

Linkbases

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Types of Linkbases

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•Presentation Linkbase•Calculation Linkbase•Definition Linkbase•Formula Linkbase

Describing Relationship

amongst elements

•Reference Linkbase•Label Linkbase

Linking to external sources

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Extended links :

• Logical grouping of elements. • Linkbase is a collection of extended links

Locators :

• Point to the concepts that are to be related

Arc :

• Used to connect two or more locators

Arc role:

• Functionality of the arc joining the locators

Linkbase : Basic terminology

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AssetsAbstract

FixedAssetsCurrentAssets

Abstract

Cash

AccountsReceivable

Inventories

CurrentAssets

Assets

Element Order

AssetsAbstract FixedAssets 1

CurrentAssetsAbstract 2

Cash 1

AccountsReceivable 2

Inventories 3

CurrentAssets 4

Assets 3

Present Structure Headers are abstract Preferred role

Presentation Linkbase

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• Weights = +1 / -1• Cross context calculations• Opposite balance attributes

– credit element + credit element– credit element –debit element– debit element + debit element– debit element –credit element

Assets

FixedAssets CurrentAssets

Cash

Accounts

Receivable

Inventories

Element Order Weight

Assets FixedAssets 1 1

CurrentAssets 2 1

Cash 1 1

AccountsReceivable 2 1

Inventories 3 1

Calculation Linkbase

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Element Order

AssetsAbstract FixedAssets 1

CurrentAssetsAbstract 2

Cash 1

AccountsReceivable 2

Inventories 3

CurrentAssets 4

Assets 3

Element Order Weight

Assets FixedAssets 1 1

CurrentAssets 2 1

Cash 1 1

AccountsReceivable 2 1

Inventories 3 1

Presentation Link Calculation Link

Presentation v/s Calculation linkbase

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• Defines additional relationships

• If dimensions are required to be modeled in the taxonomy, it is done with the definition link.

• Four standard types of roles (Other than dimensional)

o General – Specialo Essence – Aliaso Requires – Elementso Similar – Tuples

Definition Linkbase

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• Some elements can be unreadableStatementThatFinancialStatementsAndCorrspondingFiguresForPreviousPeriodsHaveBeenRestatedForChangesInPurchasingPower

• Element labels

Financial statements restated for purchasing power changes

Differentiation done by language attribute of XML

Differentiation done by xlink:role

Multilingual

Multicontextual

Label Linkbase

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Multilingual labels:

Assets, total – EnglishActifs, total – FrenchActivos, total – Spanish

label Examples

standard label Earnings (Loss) in Foreign Currency

terse label Earnings (Loss) Forex

verbose label Earnings (Loss) in Foreign Currency

of the Entity

positive label Earnings in Foreign Currency

negative label Loss in Foreign Currency

total label Total Earnings (Loss) in ForeignCurrency

negated label -

period start label Cash and Cash Equivalents,Beginning Balance

period end label Cash and Cash Equivalents, Ending

Balance

documentation -

Multi contextual labels:

General reserve, beginning balance

General reserve, ending balance

Label Linkbase

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• Store the source that describe the associated external regulation or standard• Present relationship between elements and external regulations or standards• Relates business concepts to Metadata

definitionRef

• Reference for defining the meaning of the element

disclosureRef

• Reference for disclosure as required by the regulation or the standard relating to the concept.

presentationRef• Reference to a document which explains

how and where the element should be presented in terms of its placement and labelling

measurementRef

• Reference provide explanations about what determines the value of an element and how it should be calculated

commonPracticeRef

• Reference for common practice disclosure relating to the concept.

Reference parts

Use

IssueDate Issue date of the standard or interpretation

Name Name of authoritive literature eg. IAS, IFRS etc

Number Number of the standard or interpretation

Section Sections of standard or interpretation.

Paragraph Paragraph in the standard

Subparagraph Subparagraph of a paragraph

Clause Subcomponent of a sub paragraph

Subclause Subcomponent of a clause in a paragraph

Reference Linkbase

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Linkbase Arc role used

Presentation parent-child

Calculation summation-item

Definition* general-special

essence-alias

similar-tuples

requires-elements

Label concept-label

Reference concept-reference

* Other than for dimensional relationships

Linkbases : Arcroles

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Linkbases

Presentation Linkbase

• Defines how concepts should be presented & displayed

Calculation Linkbase

• Arithmetical relationship between the concepts

Definition Linkbase

• Defines additional relationship between elements

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Linkbases

Formula Linkbase

• Advanced and user defined mathematical and logical relationships between concepts

Label Linkbase

• Provide human readable information about concepts

Reference Linkbase

• Contains the references to literature

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Quiz Time!!!

Fill in the blanks –

1. The arc role used in presentation linkbase is _________.

2. ________ plays a very important role in calculation linkbase.

3. In order to establish a relationship between two similar concepts _______ arc role is used.

4. _________ plays a very important role in presentation linkbase.

5. The elements in calculation linkbase must have identical ______ type.

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Exercise

For the same given sample set of data, define the calculation, presentation and label linkbase

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BUILDING TAXONOMIES

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Steps in taxonomy building

Steps in taxonomy building• Analysis and Element identification• Data modeling and taxonomy

designing• Validating and Testing taxonomy

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Analysis and Element identification

• Understanding the business requirements

• Analyzing the relevant regulatory literature and guidelines to understand the reporting requirements– E.g. In case of Indian GAAP taxonomy, the Companies Act,

Accounting standards, Listing agreements need to be analyzed

• Identifying the data elements to be reported

• Rationalizing the reporting requirements– Same elements appearing in the different reports need to

be defined only once

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Data modeling and taxonomy designing

• Defining the XBRL properties of the elements

• Defining the interrelationship between the elements identified

• Structuring the taxonomy as per the XBRL specifications– Nature and properties of elements– Grouping the elements– Using dimensions

• Creating the taxonomy documents

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Validating and Testing taxonomy

• Validating the taxonomy– XBRL Specifications– Elements and the interrelationships

• Testing the taxonomy– Testing for fitness– Creating sample instance documents

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Taxonomy Designing Team

Team ideally comprises of – Domain experts– Technology experts

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Few XBRL Taxonomies around the world..

• US-GAAP 2009 / 2010– Financial Reporting to US SEC, Mutual Fund Risk Return Summary Taxonomy

• IFRS 2010– Represents IFRS 2010

• FinRep & Corep– Financial Reporting & BASEL II based Reporting in CEBS*

Indian Taxonomies• Indian GAAP

– C&I – Banking

• RBI – Basel II– Liquidity Returns (Form A)– Currency Position (GPB)

• SEBI– Mutual fund taxonomy

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FINANCIAL REPORTING TAXONOMIES ARCHITECTURE (FRTA)

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• Financial Reporting Taxonomies Architecture

• Describes the architecture of financial reporting taxonomies

• It also provides a guidance for designing and developing taxonomies

FRTA - Overview

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Layers of the Financial Reporting Taxonomy Architecture

XML, Namespaces, XML Schema and XML Linking Language (Xlink)

Concept Layer:Elements, links, arcs, labels, references and tuples

Relationship Layer:Usage of definition, calculation and presentation for modeling

Extensions Layer:Guidance on how to organise sets of taxonomies and linkbases

Discoverable Taxonomy Set Layer:Features and properties of taxonomy schemas and linkbases

Structure of FRTA

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Schema must define only one concept for each separately defined class of facts

FRTA : Rules for Concepts

Contextual and measurement information Must not result in different elements in a taxonomy

Label Camel Case ConcatenationElement names MUST be based on an appropriate presentation label for the element.

Label changes in subsequent version of the taxonomy, should not result in the change of element name.

First character of the element should not be underscore (_).

The first character of the element name must be capitalized.

Connective words like and , the, for, which can be omitted if required.

Special characters should not be used: ( )*+[]?\/^{}|@ # % ^ = ~ ` “ ‘ ; : , <> & $ ₤ €

Element names should not exceed 256 characters

Concept names should adhere to the LC3 convention

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FRTA : Rules for Concepts

Element declarations must contain an “id” attribute beginning with prefix followed by an underscore and then element name

The value of the “nillable” attribute should be true for all concepts

Monetary concept declarations must use the balance attribute

All documentation of a concept must be contained in XBRL linkbases

A concept must have a label with the standard label role

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A linkbase may contain any number of sets of extended-type links partitioned by role

A concept meant to be ordered among its siblings must have a parent-child presentation relationship from its parent concept.

Child having the same parent in extended links with the same extended link role should provide preferred labels.

FRTA : Rules for Presentation Linkbase

Abstract elements may be used as a heading to group concepts for presentation.

In movement analysis only one element must be defined for beginning, adjusted and ending balances , each with a different preferred label

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All concepts having additive relationship in all equal contexts should have calculation relationships.

Alternative calculation relationships for the same item must be in extended-type links with distinct roles

Taxonomies should define an extensive set of subtotal concepts to limit the extensions

FRTA : Rules for Calculation Linkbase

The declarations of elements in calculation linkbase must have identical values of the periodType attribute.

The source & target concepts of summation-item relations must be distinct

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THANK YOU!!!