Ask FERF about ... sources of information on XBRL.

XBRL (eXtensible Business Reporting Language) is a language for the electronic communication of business and financial data. As such, XBRL is not a technology. It is a set of standards, called taxonomies, which are built using an existing standard, eXtensible Markup Language (XML).

XBRL: A Revolution in Corporate Reporting? (see page 40) describes the benefits of XBRL from the perspectives of financial executives at three of the nine early participants in the Securities and Exchange Commission's (SEC's) Voluntary Filing Program (VFP). Other financial executives are encouraged to consider participation in the VFP. For those that do, there are several good sources of information for them to get started:

XBRL.org

XBRL is being developed by an international consortium of about 350 major companies, organizations, and government agencies. Its website, www.xbrl.org, is perhaps the best source of information on XBRL.

This website has a robust menu. Under "What is XBRL," you will find information on "Benefits and Uses," "How XBRL Works" and "FAQs" (Frequently Asked Questions).

Under "Latest News," the SEC's VFP is described. It also provides a link to a special Web page with links to the XBRL filings of the nine companies participating in the VFP, and resources for other companies considering participation in the VFP.

Under "The Showcase," you can view the details of XBRL projects that have been implemented, demonstrations of how XBRL works, case studies and white papers that are available, as well as specific XBRL products and services.

The XBRL.org website also provides taxonomies, specifications and other technical information.

Financial Executives Research Foundation (FERF)

FERF has published two executive reports on XBRL, both of them coauthored 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 (September 2003). This executive report describes how XBRL can solve key challenges faced by businesses and provides a status report on the adoption of XBRL in effect at that time.

Financial Reporting in the XBRL Age: A Step-by-Step XBRL Implementation (October 2005). This executive report describes how XBRL can be used for both internal and external reporting, and, as the title implies, provides a 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

7. Publish the Instance Documents and Taxonomies

Both of these reports are available in pdf format at www.fei.org/rfbookstore/ and are free to FEI members.

EDGAR Online Inc.

A free white paper on XBRL, entitled XBRL: The Changing World of Financial Reporting, can be downloaded from EDGAR Online at: www.edgaronline.com/contact/feiwebcast.aspx.

Authored by Liv Watson, vice president of XBRL Strategies, this white paper describes the status of global adoption of XBRL and why XBRL is important to various constituencies.

U.S. Securities and Exchange Commission (SEC)

SEC Chairman Christopher Cox is a strong proponent of XBRL. His speech to the 12th XBRL International Conference in Tokyo, Japan, on Nov. 7, 2005, is available on the SEC website in text format and Windows Media at: ww.sec.gov/news/speech/spch110705cc.htm/

To read Cox's remarks, go to the SEC's website, www.sec.gov, click on "News & Public Statements," then on "Speeches and Public Statements by Chairman and Commissioners."

This speech presents Chairman Cox's vision for the future of interactive data and the potential for XBRL to help realize that vision. "The reason that everyone is not doing their financial reporting using interactive data is simple: it's a new concept," Cox noted in his remarks. "People will use it when they discover how much time and money it can save them, by automating and speeding up the process."

Also on the SEC's website are all XBRL reports filed by the nine voluntary filers, in both html and text: www.sec.gov/Archives/edgar/xbr/.htm/.

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

contributed by FERF