This document provides a summary of the key points about XBRL (eXtensible Business Reporting Language) and the future of financial reporting using semantic technologies.
It begins by outlining the challenge of moving finance from a manufacturing model to a more integrated model. It then provides an overview of what XBRL is, how it efficiently formats and delivers financial data, and how semantic finance may be the next step.
The rest of the summary focuses on key aspects of XBRL including how it tags and separates financial data using taxonomies, its global reach and adoption, the principles of an XBRL framework, and how semantic technologies could further automate financial reporting in the future.
29. XBRL in short
eXtensible Business Reporting Language
web standard derived of XML
disaggregates unwieldy information packages into
constituent semantic elements
separates technical and business specifications
open, royalty-free property of XBRL International
30. More XX‘s
Taxonomies
container of business logic
comparable to chart of accounts, but more
available for IFRS, US GAAP, many more
Extensions
31. Global reach
Central organisation XBRL International
Many local jurisdictions
local awareness
locally relevant taxonomies
quick adoption in many countries: USA, China, India,
Japan, NL, Germany, France
32. XBRL in Switzerland
founded in 2008
„Provisional Jurisdiction“ of XBRL International
members from academia, accountancy, financial
analysis, preparers etc
next event 22 October with kick-off for Swiss GAAP
and OR taxonomies
xbrl-ch.ch
34. User awareness lacking
9%
high in EMEA at 66%! 32%
59%
CFA Institute works on
raising awareness
Up-to-date awareness
Aware
Not aware
35. First: Disclosure neutrality
Core taxonomy should be predefined by current
financial reporting standards, including GAAP and
other regulatory disclosure and reporting requirements.
36. Second: Limited extensions
Taxonomy extensibility should maintain the level of
data comparability as defined by GAAP and other
regulatory requirements.
37. Third: Going global
Ultimately, companies should deliver required financial
reports to regulators using the established XBRL
framework
38. Fourth: Open Source
The general public should have equal access to the
XBRL tagged information
39. Fifth: Co-operation
Regulators should develop the necessary infrastructure
and protocol to ensure the timely updating of the
established XBRL framework as outlined in the
preceding four key principles
41. What is the Semantic Web?
The Semantic Web is ...
a vision for a future web of meaning
not separate, but an extension of the current web
a way for machines to better process & understand
data
a web on which machine reasoning can become
ubiquitous and powerful
describes a set of standards, ML & tools
42. Manual labour going strong
18%
37%
Manual extraction high
among specialist
34%
analysts
11%
Entirely manual
Mostly manual
Entirely 3rd party
Mostly 3rd party
43. Disruptive innovation?
worse performance near-term
different value proposition
cheaper, simpler, smaller, and more convenient
launched in new or insignificant markets
leading customers do not want it at first
44. Sustaining innovation?
better performance of established products
measured along historically established
mainstream dimensions
may be radical or discontinuous, but still
sustains established firms
49. Price discovery, ca. 1920
Valuation Expecta- Valuation Expecta-
concepts tions concepts tions
Bid Ask
Fundamental Fundamental
Information Information
50. Price discovery, ca. 2000
Valuation Expecta- Valuation Expecta-
Bid Ask
concepts tions concepts tions
Fundamental
information
51. Price discovery, ca. 2015
Expectations Bid Ask Expectations
Valuation Fundamental
concepts information
