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Creating a comparative Income Statement
The objective of this exercise is to provide students with additional experience using Dragon Tag to create a traditional financial report – a comparative income statement. The data that we will use is from Microsoft for the first quarters of 2003 and 2004. Before attempting this exercise, students should work through the self-paced Rivet Brief Users Guide and Basic Exercise. Starting point: Two quarters of income statement data from Microsoft Corporation in an Excel spreadsheet.
File: msIncomeStmtsStart.xls
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Creating an Income Statement
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Student Assignment: Using Rivet Dragon Tag, create an Entity Profile for Microsoft Corporation and appropriately mark up all of the income statement items in the above Excel spreadsheet. Microsoft reports under the rules for U.S. GAAP C&I. When finished, validate your XBRL instance document, then export a Web page and an XBRL instance document. Your teacher/assignment leader will provide you more instructions if necessary. To get started: Have students download the msIncomeStmtsStart.xls file or create it themselves. Instructors notes: This exercise is significantly more complicated than the basic exercise on Current assets – be prepared for students to have questions. Complications include the following: • Working with the elements in the Income Statement portion of the U.S. GAAP C&I taxonomy – requires students to pay close attention to the hierarchy of elements and to make decisions about the appropriate elements to use to tag items. The following illustrates some of my choices (expect differences):
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Creating an Income Statement
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This assignment has two separate contexts – one for the 1st quarter of 2003 and another for the 1st quarter of 2004, requiring students to set up two separate calendar periods and two separate Hoppers to use to markup the monetary items; This assignment has both monetary items and shares (EPS) items in the same spreadsheet, requiring students to set up numeric items for both monetary items in millions and shares items and two more Hoppers to use for markup. I actually set up 4 Hoppers, illustrated below, including details of the 2004Q1 hopper for monetary items:
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As the instructor, you may want to give the students hints or ask them to figure out some of the complexities before they do the assignment. Building on the Brief Users Guide and Basic Exercise, complexities in this assignment include defining a calendar period for a “duration of time” instead of an “instant,” working with two separate periods of time requiring two separate calendars, and working with shares data in addition to monetary data. Issues are most likely to arise during the Validation operation. Instructors should familiarize themselves with the common errors that occur in marking up data. For
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Creating an Income Statement
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example, a student might not include all of the required elements in a Hopper and receive validation errors, which will appear in the spreadsheet highlighted in red. Solutions: The following are my solutions. Income statement rendered by Dragon Tag for a browser session – only other Dragon Tag users will be able to see it this way:
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Income statement as an instance document (2 screen shots):
In this form, Microsoft’s Income Statement is ready to be submitted electronically to the SEC. Microsoft is a member of XBRL International and is participating in the SEC’s voluntary XBRL filing program (first quarter 2005).
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Creating an Income Statement