edgar agents xbrl presentation
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Edgar Agents, LLC
XBRLAN OVERVIEW
An xbrl.us Member
WHAT IS XBRL?(EXTENSIBLE BUSINESS REPORTING LANGUAGE)
Specific Data Tags of Taxonomies applied to
financial information. Basically, “Bar-Coding” for
financial information. XBRL is a just a set of rules
for attaching identifying codes to items of for attaching identifying codes to items of
financial information.
XBRL promises to provide transparency, accuracy
and timeliness of company’s fundamental data.
What does this all mean?
This means instead of presenting financial information as a block of text as in a printed document, itprovides an identifying tag (definition) for each individual item of data within your primary financialstatements (Balance Sheet, Income Statement, Cash Flows, Shareholders Equity and accompanyingfootnotes). XBRL has the ability to “tag” or code each element on a financial or business report withinformation such as description, units, currency, etc., so that it is easy to identify and understand for users ofthe information.
Why is this important?
It is a SEC REQUIREMENT and a permanent part of the reporting process for public companies whichIt is a SEC REQUIREMENT and a permanent part of the reporting process for public companies whichallows investors, financial institutions, analysts, and regulators to name a few industries that rely onfinancial data to compare and analyze companies faster and more efficiently, seamlessly andinstantaneously, without needing to waste time poring through reports to locate information.
Overall XBRL saves a tremendous amount of time in analyzing and cleaning the data, it helps to buildbetter quality models for better investment decisions. XBRL also frees up analysts from number crunchingand lets them focus on studying companies, talking to executives and analyzing industry trends.
Advantage to Analysts Advantage to Filers
Efficiency and accuracy Distribution of information through the expansion
of their potential investor base.
PHASE-INThe SEC requirements will be a phased in approach to allow businesses to ease their
way into compliance over time:
YEAR 1 - Domestic and foreign companies that are large accelerated filers under Exchange Act Rule 12b-
2, use U.S. Generally Accepted Accounting Principles (U.S. GAAP) and have non-affiliate held
equity securities valued at more than $5 billion (about 500 companies). Requirements begin for
the first quarterly report on Form 10-Q or annual report on Form 20-F or 40-F, as applicable, that
contains financial statements for a period ending on or after June 15, 2009.contains financial statements for a period ending on or after June 15, 2009.
YEAR 2 - All other domestic and foreign companies that are large accelerated filers and use U.S. GAAP.
Requirements begin for the first quarterly report on Form 10-Q or annual report on Form 20-F or
40-F, as applicable, that contains financial statements for a period ending on or after June 15,
2010.
YEAR 3 - All other domestic and foreign companies that use U.S. GAAP and foreign companies that use
International Financial Reporting Standards as issued by the International Accounting Standards
Board (IFRS/IASB). Requirements begin for the first quarterly report on Form 10-Q or annual
report on Form 20-F or 40-F, as applicable, that contains financial statements for a period ending
on or after June 15, 2011.
Creation Process
Blue indicates Information and Information Flow;
Orange indicates Process and Process Flow
�
TIMING
• Start Early
– 8000 companies will need to file in the next few months and XBRL literally could take 3-5 months to finalize the initial template.
– We will tag your last set of financials and forward – We will tag your last set of financials and forward a excel spread sheet of all the items that were assigned definitions to the company for comments that the elements are correctly suited to that concept, this is what takes the bulk of the time.
Forms required to be tagged
• Quarterly, annual, & transition reports (Form
10, 10-Q, 10-K, 20-F, & 40-F)
• Forms 8-K or 6-K that contain revised or
updated financial statementsupdated financial statements
• Restatements
• Security Act registration statements (not IPOs)
(S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, & F-10)
Levels of Tagging• Level 1 – Each complete footnote tagged as a single
block of text.
• Level 2 - Each significant accounting policy within the significant accounting policies footnote tagged as a single block of text.
• Level 3 – Each table within each footnote tagged as a • Level 3 – Each table within each footnote tagged as a separate block of text.
• Level 4 – Within each footnote, each amount (i.e. monetary value, percentage, and number) is required to be separately tagged. Narrative disclosures are not required to be broken out.
Level 1 is required in year 1*. Levels 1-4 are required year 2 and on.(*June, July, August year-end companies are subject to all 4 levels of tagging for the first time in the Form 10-K rather than 10-Q.)
Notes for XBRL
• MD&A, executive compensation, or other financial statistical or narrative disclosure outside of the financials do not have to be tagged in XBRL.
• Auditor involvement is not required for the accuracy of an XBRL document.
• Tagging activity and time consumption triples in the • Tagging activity and time consumption triples in the second year of filing.
• There is no requirement for the XBRL data to look like the official filing.
• XBRL data must be posted on a client’s website (if they have one) the day they file. A hyperlink to the SEC website is not acceptable. It is required to remain on the website for at least 12 months
SEC Previewer
“XBRL is about the Data, not the
Presentation.” - SEC
Ą10-Q Balance Sheet in
XBRL
This is a preliminary view of what your
XBRL filing could look like after filing
with the SEC.
Please note that the details for the
stock are mapped in the next slide in
the parenthetical.
Also, attached to this email, you will Also, attached to this email, you will
find an Excel file. This file will tell you
which taxonomies were used to map
the demo financials and the details
related to that mapping without any
communication and confirmation of
these codes with our XBRL specialists
to ensure an accurate and SEC
compliant submission. The Excel file
like this will be emailed to you for
review when we prepare a filing.
Balance Sheet
Parenthetical
The parenthetical shows the detail for
the common and preferred stock. It
will be seen as a separate table.
For more information, please contact
us at 732-780-5036
Or by email at lmusto@edgaragents.comOr by email at lmusto@edgaragents.com
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