Analysis of Financial Data May 15, 2012 This presentation has been prepared to help constituents understand the current status of projects of the FASB.

Analysis of Financial Data

May 15, 2012

This presentation has been prepared to help constituents understand the current status of projects of the FASB. The views expressed in this presentation are those of the presenter. Official positions of the FASB and the IASB are reached only after extensive due process and deliberations.

Analysis of Financial Data

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Number of companies filed– Almost 10,000

Number of filings– Over 33,000

Fact values reported– 18 million facts

All (except for filers using IFRS) will be detail tagging with June 2012 filing

Current State – XBRL

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XBRL Data Consumption

Various tools for analysis Use of data – internal (filer)− Peer group comparisons− Acquisition targets− Company trends Use of data – external− Buy/sell decisions− Data collection− Research

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Consistency Suite

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Consistency Suite (C Suite) is an XBRL database of SEC-submitted filings, maintained by XBRL US

Updated shortly after each filing is submitted to the SEC Free tool for use for anyone with a FAF, FASB or GASB

email account Site Address:- http://xbrl.us/research/pages/Csuite.aspx

Consistency Suite

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Tools for Analysis

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XBRL Data Example 1 - XBRL US Tool

2010 filings - Debt by SIC Code

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XBRL DataExample 1 – XBRL US Tool

2011 filings - Debt by SIC Code

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XBRL Data Example 1 - XBRL US Tool

Data for financial sector further disaggregated

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XBRL Data Example 2 - XBRL US Tool

2010 filings - Revenue for retail trade sectorWal-Mart has $408,085,000,000 of the $1,894,815,271,079 total for retail trade (22%)

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XBRL Data Example 2 - XBRL US Tool

2011 filings - Revenue for retail sector, total revenue for sector increased 6% over prior year

Wal-Mart has $421,849,000,000 of the $2,023,911,506,915 total for retail trade (21%), increased 3% over prior year

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XBRL to XL Example 3

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XBRL to XL Example 3

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XBRL to XL Example 3

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CalcbenchExample 4

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Issue: Expected Return on Pension Assets

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715-20-50-1(k)(3)

US GAAP Codification

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Link to the UGT

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Getting to the US GAAP Taxonomy (UGT)

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Getting to the UGT

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Getting to the UGT

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Searching the UGT

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Navigating the UGT

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Key: Element Name

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Log in

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Run Query

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Results Exported to Excel

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Results - Table

2008 2009 2010 2011 2012Average 7.74% 7.49% 7.34% 7.08% 7.23%

Median 8.00% 8.00% 7.75% 7.50% 7.50%

Mode 8.00% 8.00% 8.00% 8.00% 7.50%

Max 12.30% 12.30% 15.00% 14.25% 9.20%

Min 2.50% 1.40% 0.40% 0.24% 3.00%

Count 379 1126 1309 1288 57

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Fair Value Option

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Fair Value Option

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If You Click on the Element in the Cod:

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Highlight the Element Name & Copy

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Search for element in the UGT

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Returns Element

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C Suite Search Results

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Standard Setting Considerations

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We are in a paradigm shift from print/PDF to electronic data, but …

- The “narrative” is still grounded in presentation

- Many still use print statements

- Many requirements are set in SEC Rules

Our aim is to shift the narrative more towards electronic data to better anticipate change

Transforming Financial Reporting

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Three key dimensions- Presentation- Relationships, disaggregation, recognition- Metadata/attributes

XBRL changes the geography question

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69. Upon initial recognition of the receivable, any difference between the measurement of the receivable in accordance with Topic 310 and the corresponding amount of revenue recognized shall be presented in profit or loss as a separate line item adjacent to the revenue line item. If the contract does not have a significant financing component in accordance with paragraph 58, an entity shall present any impairment of the receivable (or change in the measurement of an impairment) in profit or loss as a separate line item adjacent to the revenue line item.

Revenue Recognition (Topic 605) Proposed Accounting Standards Update (Revised)

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OCI - Potential Classification Models

Degree of Persistence Core / Non-core Management Control (Stewardship) Remeasurements Degree of Measurement Uncertainty Time Horizon until Realization Operating v. Investing & Financing Other?

Instead of classifying, could we just provide the attributes?

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Organization, Formatting, and Style

The Board indicated that a Discussion Paper would present a number of ways that a reporting entity could organize information within the notes to the financial statements. Organization of information would not only apply to the ordering of individual notes but also to the information within each note.

The Discussion Paper also would provide ideas pertaining to the formatting and style of information in the notes with the intent of establishing clear communication of the information that an entity provides.

Disclosure Framework

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The project will include ways reporting entities can improve the organization and formatting of their disclosures

Organization would not only apply to the order of the notes but to the order of the information within the notes

Discussion paper will include guidance pertaining to:

• Referencing/cross-referencing

• Use of headings and tables

• Entity specific disclosures

Organization and Formatting

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Encourage tabular disclosures over narrative

Deemphasize presentation centric view Identify key attributes that should be

disclosed and consider how we can shape the outcome using XBRL

Taking advantage of XBRL

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A song on iTunes is to an ‘album’ what cash is to assets.

If people no longer buy albums and only buy the songs, what does that mean for assets?

Final thoughts

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“David Weinberger attacks the complexity of the real world, not by making it simple, but by making it clear. Once he explains how things can be in more than one place at a time-and make sense-you’ll never look at a humble bookshelf or store shelf the same way again.”

-- Esther Dyson, author of Release 2.0

www.everythingismiscellaneous.com

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QuestionsQuestions

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