Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

10K Disclosure by zgc58946

VIEWS: 0 PAGES: 17

10K Disclosure document sample

More Info
									 Steps for Filing Your First
         10Q/10K

Michael Ohata
Director Reporting Standards - Microsoft
Walter Hamscher
President & CEO - Standard Advantage
What We Did & Why
 Started with 10Q, for          Started prior to Voluntary
  quarter ending December         Program to provide
  31, 2004                        feedback to SEC,
                                  consortium, software
                                  vendors
 Set out to complete financial  Assess what it takes for
  information WITH notes and      other companies
  management discussion &        Test the limits of the US
  analysis                        GAAP taxonomies, tagging
                                  narrative parts
 Scenario: Tagged in Excel     Test first-hand how desktop
  and Word                       scenario really works
                                Identify solution / tool gaps
 Ensured external reporting    Define business process
  team provide quality           required
  assurance
Steps in Producing 10Q / 10K


                 Publish Instance Document & Taxonomy




 Extend the taxonomy if         Review &        Create an instance document
       necessary            Validate Instance     and validate calculations
                                Document


                Assess Scope of
             Reporting & Download                       Compare & map
                  Taxonomy                             10K/10Q to GAAP
                                                          Taxonomy




     Identify a team: Accountant &
     Developer (XML)
A Few Numbers
 Developing taxonomy: 60 hours (iterative
  process)
 Revving after US GAAP taxonomies
  released: 20 hours
 Creating instance document: 60 hours
 Extensions for financial statements: 7
 Extensions for MD&A: 200
 Calculation linkbase edits: 300
 QA review: 40 hours
And a Few Pain Points
(Preparer’s Perspective)
 Working in Beta software
 6 tools to complete 10Q and conduct QA
 Deconstructing tables in MD&A: Fluid presentation
  in Word not readily structured into data
 Tools struggle with complexity of technology:
  Either in your face or hidden
 Needing to write and edit XML…
 Asking external reporting team to read XML (not
  kidding) – No simple tools to render the XBRL
 Extending taxonomy really does require XBRL
  technologist
What We Learned & Observed
(Preparer’s Perspective)
 Tagging data represents new task – need simple
  UI
 We need guidance or best practices (e.g. Context
  definitions represent ONE-THIRD of the XML in 10Q)
 In near to mid-term the doc filed with SEC is an
  XML doc
 Tools in the “v1” stage…they should only get
  better
 Taxonomy extensions and validation process puts
  XBRL in face of the user (preparer): Complex
A Milestone
The Source
file://c:/dev/microsoft.com/raw/MSFT_2Q2005_10Q.doc

The Filing
http://www.sec.gov/Archives/edgar/data/789019/000119312
505020639/0001193125-05-020639-index.htm

The Instance
file://c:/temp/microsoft.com/msft/MSFT-10Q-2004-12-
31/index.html

The Facts
file://c:/temp/microsoft.com/msft/MSFT-Facts.csv
Key Points
 Several people (roles) were involved, so it’s not
  too surprising that several tools involved.
 Review requires a paradigm shift from
  presentation view to data viewpoint.
 The MSFT 10Q was the first XBRL document ever
  sent to the SEC that:
     Used XBRL 2.1;
     Used the 2004-08 US GAAP taxonomy;
     Had an extension that was compliant with FRTA CR4;
     Encompassed everything in the 10-Q, including Notes.
 Mapping gets easier every quarter
 Pre-release software evolves rapidly
Mapping and extending a taxonomy:
The crux of XBRL-ification
 1st Pass: Match concepts from existing taxonomy
  to items disclosed; note gaps and duplications
For example
 file://C:/dev/microsoft.com/fin/2004-12-
  31/10Q%20Gap%20Analysis_MSFT+MO+
  WcH.xls
Mapping and extending a taxonomy:
The crux of XBRL-ification
 1st Pass: Match concepts from existing taxonomy
  to items disclosed; note gaps and duplications
 1st Decision: use the entire base taxonomy, or just
  the element declarations?
In other words
Mapping and extending a taxonomy:
The crux of XBRL-ification
 1st Pass: Match concepts from existing taxonomy
  to items disclosed; note gaps and duplications
 1st Decision: use the entire base taxonomy, or just
  the element declarations?
 2nd Pass: Add elements (periods and credit/debit
  flags), update element labels, and rearrange
  presentation nesting and order.
 2nd Decision: Comprehensive or minimal
  calculations?
 3rd Pass (calculations): Edit and add calculations.
 3rd Decision: FRTA-compliant extension, or not?
 4th Pass: Document the taxonomy extension.
Challenges
 Expectation management
   Defining and agreeing disclosure goals
   3rd party confidentiality (if prior to disclosure)
 Mapping (extension) requires both
  accounting and technical understanding
 Segment reporting
   MD&A Structure and consistency
   Reconciling GAAP vs. Management financial data for
    consolidation
 file://c:/temp/microsoft.com/msft/MSFT-10Q-2004-12-31/index.html
What We Learned (Wish List):
One Technologist’s Perspective
 Tool support for modularization of base
  taxonomies into smaller components
 Automate the correspondence of original
  calculations to XBRL calculations
 Automate the generation of segments and
  scenarios
Best Practices and Resources
 Thursday Tutorial: “Preparing for the SEC
  Voluntary Filing Programme”
     Covers most technical and disclosure issues
     Addresses several key preparation process
     Uses multiple vendor tools
     Collaborative effort of Big 4 firm representatives
 Future events are being planned
 http://www.XBRL.org/us
 http://www.XBRL.org/tools
 Steps for Filing Your First
         10Q/10K

Michael Ohata
Director Reporting Standards - Microsoft
Walter Hamscher
President & CEO - Standard Advantage

								
To top