Ask FERF about ... XBRL.

XBRL (eXtensible Business Reporting Language) is a language for the electronic communication of business and financial data.

XBRL is not a technology, but rather a set of standards, called taxonomies, which are built using the eXtensible Markup Language (XML). The U.S. Securities and Exchange Commission (SEC) uses the generic term "interactive data" to describe XBRL.

"Interactive Data: Is the SEC's Priority Your Priority," on page 29, describes the experiences of financial executives at several of the approximately 40 companies that are currently participating in the SEC's Voluntary Filing Program for filing in XBRL. Other financial executives are encouraged to consider participation in this test group. For consideration, here are several good sources of information:

XBRL International

XBRL is being developed by an international consortium of about 450 major companies, organizations and government agencies. Its website, www.xbrl.org, is perhaps the best source of information.

This site has a robust menu.

* What is XBRL has information on Benefits and Uses, How XBRL Works and Frequently Asked Questions (FAQs).

* XBRL in Action is a "one-stop shop" for how to implement XBRL, providing links to: XBRL case studies; project details; demos; and products and services.

* Education and Training provides a selection of explanatory materials that are prepared by XBRL members. Training and information sessions often take place at conferences, while jurisdictions and member organizations also run symposia and dedicated training.

XBRL-U.S.

The U.S. jurisdiction of XBRL International (www.xbrl.org/us) is composed of companies, organizations and individuals dedicated to developing and promoting XBRL adoption. There is a description of the SEC's Voluntary Filing Program and links to members: www.xbrl.org/us/members/.

U.S. Securities and Exchange Commission

The SEC's home page (www.sec.gov) provides a link to "Interactive Data." This links to "Spotlight On: Interactive Data and XBRL Initiatives," with the latest information and releases on SEC XBRL activities. "Interactive Financial Report Viewer--Preview Release" allows viewers to interact with XBRL filings from more than 40 companies and is part of the SEC's Voluntary Filing Program.

Financial Executives Research Foundation (FERF)

FERF has published two Executive Reports on XBRL, both co-authored by Taylor Hawes, Controller, Global Platforms and Operations, for Microsoft Corp., and chairman of FEI's Committee on Finance and Information Technology (CFIT):

* Everything You Wanted to Know About XBRL, but Were Afraid to Ask, 2003. This Executive Report describes how XBRL can solve key challenges faced by businesses and provides a status report on the adoption of XBRL.

* Financial Reporting in the XBRL Age: A Step-by-Step XBRL Implementation, 2005. This Executive Report describes how XBRL can be used for both internal and external reporting, and, as the title implies, provides this seven-step program for the adoption and implementation of XBRL:

1. Identify a Team: Accountant and XML Developer;

2. Assess Scope of Reporting and Determine Taxonomy;

3. Compare and Map 10-K/10-Q to Taxonomies;

4. Extend the Taxonomy as Necessary;

5. Create an Instance Document and Validate Calculations;

6. Review and Validate Instance Document; and

7. Publish the Instance Document and Taxonomies.

Also available from FERF is XBRL Reference Guide: Guidance for the Application and Conversion Capabilities of XBRL. This reference book provides background and shows financial executives how to implement XBRL in their companies.

These three reports are available in pdf format at www.fei.org/rfbookstore/ and are free to FEI members.

Smart Pros

Smart Pros provides links to four web-casts, which were live demonstrations at the XBRL Philadelphia Conference on Dec. 5, 2006. These were constructed with real financial data and showcase actual business uses of XBRL:

* The Impact of Interactive Data on the Mutual Fund Industry, Walter Hamscher, president and CEO of Standard Advantage;

* Internal Budgeting with XBRL, Darren Peterson, UBMatrix Inc.;

* Full Cycle External Reporting: From Consolidation to Publishing, Sue Childs and Robert Krugman, EDGAR Online; and

* Enhancing Financial Workflows with XBRL: From Loan Application to Final Approval, Dianne Mueller and Toshihiro Ajiki of Justsystems.

Link to the Smart Pros webcasts: www.smartpros.com/xbrldemos/.

William M. Sinnett ([e-mail]) is Director of Research for Financial Executives Research Foundation (FERF).

contributed by FERF