XBRL in Oracle 11i and R12-The journey begins

Mahesh Vallampati Coach America

About the Presenter

Mahesh Vallampati Presented several papers at IOUG and OAUG Worked at Oracle for 9 years Started out as a DBA/Apps DBA/Developer Now GL/AP/FA/PO techno functional expert DW/OBIEE Development and Support Microsoft CRM Manager Director of Oracle Applications and Technologies at Coach America in Dallas, TX Also worked at SmartDog, Hotsos and Eagle Global Logistics

Survey
How many did XBRL filings to SEC last year? How many have to do it this year? Next year? Dont have a timeline Have not heard about XBRL

Agenda
How XBRL will change reporting XBRL XBRL in 11i and R12 XBRL Example walkthrough Next Steps/How XBRL will impact you

First the bad News

Metalink Note: 744514.1 Solution
XBRL is not supported for use with FSGs in Applications Release 12. Or in Release 11i for that matter

Why
I will explain later

Metalink note 744514.1

Are XBRL Taxonomies Provided and Are Any Patches Required for XBRL for R12? [ID 744514.1] Goal It appears that the R12 tables and table modifications are present in 12.0.5 for XBRL. However, the modified forms for Row Set, Report and Run Report do not appear to be present. Also, no seeded taxonomies are provided. 1. Are any patches necessary for XBRL reporting in 12.0.5? 2. Does Oracle provide seeded taxonomies? Solution XBRL is not supported for use with FSGs in Applications Release 12.

The Good News

XBRL is XML. The XML output of FSGs and reports can be used just as fine. Several Vendors have solutions in the marketplace Oracle has other options

HOW XBRL WILL CHANGE REPORTING

Before

After

One way this could work

XBRL

What is XBRL?
eXtensible Business Reporting Language

XBRL is
An XML language Open Standard Free of License fees A modern method for communicating business information Open Data Standard for Financial Reporting

XBRL History
1998 - Conceived by Charlie Hoffman in 1998 2000 - V1 Based on DTDs 2001 - V2 Moved from DTDs to XML Schema 2003 - V2.1 Conformance and Strengthening 2003 - SBR Standard Business Reporting XBRLS XBRL Simple Application Profile

XBRL Document
XBRL is an XML Document All XML Documents have two pieces Definition Document Data Type Definitions DTD XML Schema used by XBRL Instance Document An instance of a document The data the document seeks to represent Validation Well formed (Syntax Check) Valid (Conforms to the vocabulary of the document)

XML Document example

Why do we need XBRL or XML

The separation of a document data from it specification is key The data and the specification can be read and interpreted by a machine. A spreadsheet is readable by a specific kind of application designed for it. An XML Document and the instance of the document which conforms to the syntax can be read by any program that can process XML

XBRL Architecture

2010 International Accounting Standards Committee Foundation.

XBRL Architecture
Taxonomy Schema Element Linkbase (Relationship between elements) Presentation Calculation Definition Reference Label Taxonomy Extension

Taxonomy
A kind of classification For example, an income statement is a taxonomy It identifies specific accounts Derives new accounts by specifying relationships Provides context Presents the data in a specific way Profit=Revenue-Expense is a taxonomy

Taxonomy
According to XBRL 2.1 Specification A Taxonomy is defined as an XML Schema and the set of directly referenced extended links and any extended links that are nested within the XML Schema. Taxonomy-A collection of interrelated files
Schema File: xsd files Linkbase Files: xml files

Schema

XBRL Element or Concept

Copyright 2010 All rights reserved. XBRL US, Inc

XBRL Link-base

Footnote

Linkbase
Label (is a concept) Reference Presentation Associate different roles and languages to Attach external information to concepts Nesting and Ordering of Concepts

Calculation - How calculations are performed with concepts to create new concepts Definition relationships Footnote Define additional meaning and Associate footnotes to a concept

Taxonomy Extension
An extension is a customization to an existing base taxonomy It can add or remove elements from the base taxonomy DTS is a Discoverable Taxonomy Set

XBRL Benefits
Improved access to Financial Information Increased Productivity Improved data quality and validity

XBRL EXAMPLE WALKTHROUGH

XBRL IN R12

Load Taxonomy

Associate XBRL in RowSet

Run Report

So whats the problem?

This will work for simple XSDs and instances of XBRL Documents But XBRL Documents are quite comprehensive They have a lot more components than the schema and the instance So you really need a solution which incorporates all the parts of XBRL

NEXT STEPS/HOW XBRL WILL IMPACT YOU?

SEC Mandate
Securities and Exchange commission got on the XBRL bandwagon SEC will require by law for all public companies/non-profits to post Financial information in XBRL format Phased Implementation
2009 S & P 500 companies 2010 Another 1800 companies 2011 All companies

SEC Accountant/Controller
This is the person who gets impacted the most They have to migrate to a new way of doing reporting There is a cottage industry of software/service firms ready to help

Even if you are privately held

Even if you are privately held
Your investors may ask for XBRL reports Your bank may ask for it too Any other serious large scale stakeholder

US GAAP Taxonomy

http://ww.xbrl.org/

OPTIONS FOR XBRL REPORTING

Oracle Technologies
Hyperion supports the generation of XBRL from its reporting engine Hyperion has been a part of XBRL for a while However, it will involve licensing Hyperion technologies and solutions http://blogs.oracle.com/FinancialsMkting/2010 /01/how_oracle_supports_xbrl.html

Other Options
A third party software that maps FSG output to XBRL SEC taxonomies will work This will be a quick way of doing it. Look for vendors who will provide a software/service solution Have strict SLAs around generation of these documents It is usually a one time investment Your SEC accountant is a key stakeholder

What to look for in XBRL Software

Ready made packages for SEC reporting for your industry taxonomy A good XBRL Processor A viewer of XBRL output Be able to create and edit XBRL documents by business users as well as technical users Be able to analyze XBRL documents A version control mechanism would be nice to have

What to look for in XBRL Software

Good Mapping tools Mapping tools will help map your FSG elements back to the taxonomy that you will use Ease of mapping should be a key determinant Focus on objective first, process next Financial Statements need to be submitted in a timely manner. First time can be iterative and ad-hoc, but eventually you want to be predictable and time-bound Your deadlines will not change for the SEC Proof of Concept is more important than vision

Technology Process Perspective

XBRL Process Perspective

XBRL Preparers Guide

Oracle Hyperion Architecture

Next Steps
Review KPMG Tutorial on XBRL Read the book XBRL for Dummies Review the web site http://www.xbrl.org/ Trial Software for XBRL Solutions Read the XBRL US GAAP Taxonomy Preparers Guide Develop a prototype It is not rocket science. It is just one more thing to learn and can be fun.

Q&A
mvallamp@yahoo.com