Corporate Data Transparency and Accessibility with XBRL

Posted by Gianluca Garbellotto on Feb 21, 2012 in Around the Corner, XBRL | 0 comments

Data transparency and accessibility are two of the key themes of the 24th XBRL International Conference in Abu Dhabi (March 20 to 22, 2012).

These are probably the two most important objectives that regulators around the world are pursuing with the adoption of XBRL, and also the most significant requirements for other consumers of XBRL data, such as analysts and investors. They are also key requirements within any corporate information system, big or small, and something on which organizations spend a lot of money:

• In the time and resources wasted to support the inefficient and mostly manual processes in place to bridge the gap between the real internal data aggregation and reporting needs and what the corporate information system can actually deliver;
• In the consequences of the errors that come with those processes;
• In the continued quest for additional software tools and add-ons that are supposed to fix those problems – but wait a minute, wasn’t that something that the software we bought last year was supposed to fix?

Internal data transparency and accessibility ARE issues for businesses and organizations of any size, and XBRL can help addressing those issues just like it does for regulators and analysts in a cost-effective fashion. Unfortunately for some reason extending the vision on the benefits of XBRL and of data standardization in general within the enterprise does not come natural, not even for companies that are exposed to XBRL because they have to comply with a mandate.

The truth is that any organization, large or small, for-profit or not-for-profit, no matter if it is already subject to an XBRL mandate or not, can significantly benefit from using XBRL internally to support data aggregation and reporting processes. Here are three common consequences of lack of data transparency and accessibility within an organization:

1. Proliferation of spreadsheets to address internal data aggregation requirements from disparate modules of the information system that cannot easily be automated;
2. Duplication of processes, in particular related to data analysis and monitoring, in different applications where data similar in nature is stored or processed;
3. Manual “last mile” of financial reporting;

And here are three ways in which XBRL can help address these issues:

1. Base your spreadsheets on a custom XBRL taxonomy that supports the data aggregation requirements. Spreadsheets still act as user interfaces, so users interact with a familiar environment – but they are centrally managed and automatically populated through mappings from source systems to the XBRL taxonomy, reducing time and resources required to create them and increasing the efficiency of the processes that rely on the spreadsheets; 
2. Map the data stored in the relevant applications to XBRL Global Ledger (XBRL GL), an XBRL taxonomy designed to standardize granular data in accounting software and ERP applications. Then use XBRL Formula to express the necessary analytics and controls on the data converted to XBRL GL. The same analytics can now be applied to the source data no matter in what module or application the data is stored, avoiding duplications and inconsistencies; 
3. Leverage existing XBRL taxonomies to represent the end reports, or create your own if no suitable taxonomy exists. Then map the data that rolls up to those reports using XBRL GL. The manual activities currently required to generate the end reports can now be automated and applied consistently to any data source within the organization.

These are just generic and high-level ideas, but they come from practical experience in leveraging the benefits of XBRL within the enterprise. In just a few weeks I will be in Abu Dhabi, training and presenting on internal data transparency and accessibility enabled by XBRL and XBRL GL. If you plan to attend the Conference it will be easy to find me if you want to discuss these ideas in more depth. If not, you can always leave a comment to this post, or contact me directly.

Incorporating XBRL Into the Regulatory Environment

Posted by Gianluca Garbellotto on May 13, 2011 in Around the Corner, XBRL | Comments Off

Just in case you missed my post on the topic in the Hitachi Data Interactive blog.

If you are interested in this discussion and in general want to learn about the broader role that XBRL plays in the regulatory environment, in particular in Standard Business Reporting (SBR) projects and tax and statistics related initiatives, there is still time. If you plan to be in Brussels for the 22nd XBRL International Conference, you can register for Session 3 of the pre-conference training:  XBRL’s Global Ledger: Incorporating It into the Regulatory Environment – Standard Business Reporting, Tax and Statistics is scheduled for 1:30 to 5:30 pm CET on Monday, May 16, 2011.

XBRL, XBRL GL, SBR…

Posted by Gianluca Garbellotto on May 5, 2011 in Around the Corner, XBRL | Comments Off

If you look at the program of the upcoming 22nd XBRL International Conference you may notice that the traditionally offered XBRL Global Ledger training will be a little different this time. 

On Sunday May 15 Eric E. Cohen and I will present the usual introduction to the basic “why and how” of XBRL GL – why it is necessary, where it fits and how it works. On Monday May 16 though there will be an additional session focusing on the role of XBRL GL in supporting XBRL adoption, especially in non-strictly financial statements oriented compliance – such as within Standard Business Reporting (SBR) programs.

I particularly look forward to this session.  I have been significantly involved in the SBR community for many years, working in existing projects (both NL and AU – I am pretty sure that nobody else has similar bragging rights) and in a number of countries where SBR initiatives are currently under evaluation. I am eager to share the insight and experiences accumulated and to discuss some key points that I know will be beneficial to the audience in very practical ways.

The introductory class is not a pre-requisite – of course it would help achieve the tools for a better understanding, but if you are not in Brussels on Sunday and you are interested in these topics do not be discouraged. This session is designed as a stand-alone class.

If you plan to be in Brussels and you have an interest in XBRL GL, you are probably already registered for the training. If you have an interest in topics such as XBRL implementation, SBR, tax reporting, statistical reporting… you probably should register now.

I hope to see you in Brussels!