common sec reporting errors

COMMON ERRORS IN SEC FILINGS

DISCLAIMER

COMMON SEC FILING ERRORS

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“The views expressed during this presentation are my own and do not reflect those of my employer or its clients.”

AGENDA


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1. Why does the correctness of XBRL matter

2. Reviewing the SEC staff observations

3. Identifying and Fixing Errors in XBRL

4. How to avoid them before you file

BENEFITS OF XBRL


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Financial data no longer hidden within paper documents or electronic versions

Quickly and easily discover facts

Automated is better than manual

Gain access to benchmarking information

USERS OF XBRL


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YOU!

HERE IS HOW

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SEC INTERACTIVE DATA PROGRAM


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XBRL STATUS


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Public Companies Filed

XBRL Submissions Data Issues

SEC LIMITED LIABILITY PROVISION


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Beginning 24 months after a company was first required to submit XBRL instance documents, the

SEC’s modified-liability provisions will no longer apply to submissions of XBRL-tagged financial

information.

The 24-month period will end August 10, 2011, for large accelerated filers first required to submit

XBRL-tagged financial information for financial statements in a Form 10-Q for the fiscal period ended

June 30, 2009.

XBRL-tagged financial information submitted after the provisions expire will be considered filed and

not furnished and, therefore, be subject to the same level of liability as other information included in

the registration statement or periodic report that includes the XBRL instance document.

XBRL STATUS


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TIMELINE Limited liability no longer applies for some public companies from August 2011. By August 2013, Limited Liability will expire for most public companies.

LIABILITY After Limited Liability expires, XBRL financial information filed will be subject to the same level of liability as other financial information filed.

AICPA STATEMENT OF POSITION 09-1


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Instance Properties AUP #1

Tags Accurate & Consistent AUP #2

Extensions Analysis AUP #3

Completeness of XBRL AUP #4

Note Tagging Granularity AUP #5

Labels & Linkbase AUP #6

Calculations AUP #7

Presentation AUP #8

“This SOP provides practitioners with guidance on performing agreed-upon procedures engagements that address the completeness, accuracy, or consistency of an entity's XBRL-tagged data of information as of a specified date and for a specified period.”

- American Institute of CPAs

SEC STAFF OBSERVATION


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Negative Values: Although numbers shown in the HTML attachments of an EDGAR submission may be presented as negative, they should almost always be entered as positive numbers in the XBRL instance attachment. Checking the validity of negative values cannot be done from the rendered copy of the XBRL financial statements. “LINK”

Data entered into the interactive data file with the incorrect positive/negative value gives the wrong value to users of the tagged data and does not comply with Rule 405 of Regulation S-T. Amounts must not be entered with negative values in an interactive filing for the sole purpose of forcing the amounts to render with brackets. (Edgar Filer Manual (EFM) 6.11.6) Filers should be aware that formatting amounts with or without brackets may be controlled by negating labels in the Interactive Data Financial Statements.

http://www.sec.gov/spotlight/xbrl/staff-review-observations-121311.shtml

FINDING ERRORS


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Reviewing Negative Values:

EXAMPLE ERRORS


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Negative Values that should be positive

A Negative Debit = a Credit?

FIXING THE ERRORS


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<us-gaap:Depreciation contextRef="Apr-04-2010_Apr-02-2011" unitRef="USD" decimals="-

5">-168700000</us-gaap:Depreciation>

<loc xlink:type="locator" xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_Depreciation" xlink:label="loc_Depreciation" /> <presentationArc xlink:type="arc" xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child" xlink:from="loc_IncomeStatementAbstract" xlink:to="loc_Depreciation" order="19.99996" use="optional" preferredLabel="http://www.xbrl.org/2003/role/verboseLabel" />

XBRL Geek

XBRL Instance

Depreciation needs to be a debit to make it a positive for XBRL

XBRL Presentation File

How do I fix that?

No really, how do I fix that?

<us-gaap:Depreciation contextRef="Apr-04-2010_Apr-02-2011" unitRef="USD" decimals="-

5">168700000</us-gaap:Depreciation> .

<loc xlink:type="locator" xlink:href="http://taxonomies.xbrl.us/us-gaap/2009/elts/us-gaap-2009-01-31.xsd#us-gaap_Depreciation" xlink:label="loc_Depreciation" /> <presentationArc xlink:type="arc" xlink:arcrole="http://www.xbrl.org/2003/arcrole/parent-child" xlink:from="loc_IncomeStatementAbstract" xlink:to="loc_Depreciation" order="19.99996" use="optional" preferredLabel="http://www.xbrl.org/2003/role/negatedLabel" />

Remove the negative

Use a negated label to make it

present as a negative

That just seems too technical and hard to manage!

AVOIDING THE ERRORS


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Depreciation needs to be a debit to make it a positive for XBRL



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Unnecessary Extensions: Extending where an existing US GAAP Taxonomy element is appropriate. We noted cases of extensions where appropriate elements exist but filers did not identify the appropriate element, perhaps due to insufficient or incomplete searching. Extending because of relatively minor addition(s) to or deletion(s) from the US GAAP taxonomy standard definition. We noted that some filers had made extensions for relatively minor changes to the standard element's definition. “LINK” Defining a new, company-specific element has many consequences, not only for all users of the Interactive Data Financial Statements but also for the filer's ability to reuse the elements and data structures created in subsequent reporting periods and reduce its future reporting effort.

http://www.sec.gov/spotlight/xbrl/staff-review-observations-110110.shtml

FINDING ERRORS


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Unnecessary Extensions:

EXAMPLE ERRORS


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Unnecessary Extensions:

The Extension Element has the same definition as us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest.

FIXING THE ERRORS


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Unnecessary Extensions: How do I fix that?


XBRL Instance

XBRL Presentation File

XBRL Calculation File

XBRL Extended Taxonomy

XBRL Geek

<abc:EarningsBeforeIncomeTaxes contextRef="D2012Q3YTD" decimals="-3" id="Fact-

4AF8C4A9F93C0D6BFFDAC9DF6C603201" unitRef="usd">863962000</abc:EarningsBeforeIncomeTaxes>

<us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments contextRef="D2012Q3YTD" decimals="-3" id="Fact-4AF8C4A9F93C0D6BFFDAC9DF6C603201" unitRef="usd">863962000</us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments>

XBRL Label File

XBRL Definition File

FIXING THE ERRORS


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No really, how do I fix that? Unnecessary Extensions:



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Completeness of Tagging:

Filers should ensure that parenthetical amounts on the financial statements and monetary amounts found in subscripted text are tagged. Examples of these are the Allowance for Doubtful Accounts and endnotes to tables that contain financial information. Section 6.6.22 of the EDGAR Filer Manual requires that these amounts be tagged. We have also noticed some filers failing to include a calculation linkbase with their submissions. EFM Section 6.15.2 requires calculation linkbases. Additionally, we continue to notice filers tagging numerical amounts written as text with string type elements. Some examples are “seven hundred,” “two thirds,” and “one percent.” Filers should tag these amounts with a numerical value rather than a string value

FINDING ERRORS


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Completeness of Tagging:

Rendering of XBRL HTML

Home office and stores During the three months ended March 31, 2012 and March 31, 2011, we recorded $45 million and $1 million, respectively, of costs associated with employee termination benefits for actions to reduce our store and home office expenses. For the remainder of 2012, our current estimate is to incur between $60 million to $80 million of additional charges related to this restructuring activity.

http://findicons.com/icon/211698/checkmark?id=409017

AVOIDING THE ERRORS


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Decimals: Filers should follow the decimals attribute table in EFM 6.6.32 to ensure that the tagged amounts accurately reflect the rounded values reported in their financial statements. We have noted some filers incorrectly used a "0" decimals attribute for earnings per share rounded to cents when they should have used a "2" decimals attribute instead.

EFM 6.6.32 The value of the decimals attribute of a fact must correspond to the accuracy of the corresponding amount as reported in the official HTML/ASCII document.

FINDING ERRORS


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Decimals:

FIXING THE ERRORS


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Decimals: How do I fix that?


XBRL Instance

XBRL Geek

<dei:EntityPublicFloat contextRef="c20110630" unitRef="U001" decimals="-9">7399937572000000000</dei:EntityPublicFloat>

<dei:EntityPublicFloat contextRef="c20110630" unitRef="U001" decimals=“0">7399937572</dei:EntityPublicFloat>

Incorrect

Correct

FIXING THE ERRORS


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No really, how do I fix that? Decimals:

AVOIDING ERRORS


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Automate as much as possible

For areas that require manual review, define and document processes that address risk areas

Bring auditors or other experts into the review process

QUESTIONS?


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ADDITIONAL EDUCATION

COMMON SEC ERRORS

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5 COMMON SEC ERRORS

Barcodes

Proposed in 1932 Used in Retail 1974

RIVET SOFTWARE

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5 RIVET SOFTWARE

XBRL is less subjective

US GAAP TAXONOMY US GAAP ASC US GAAP REPORTING

- concept -

System 3 System 1

Identificador de la Cuenta

Descripción Principal de la Cuenta

Monto Monetario

Fecha de Asignación/Ingreso

Account Number

Account Description

Entry Amount

Posting Date

Account#

Description

Amount

PostDate

System 2

accountMainID

accountMainDescription

amount

postingDate

accountMainID


amount

postingDate

accountMainID


amount

postingDate

XBRL GL

XBRL GL

XBRL GL

EVERY SYSTEM AS XBRL

common sec reporting errors

Documents